SMH

We could see resistance right here at the Dec 13th high area, but it looks higher to me.

 

I fully understand though that the long term trend is down so----watching closely

 

SMH closing above Dec 13th high and will have the highest close since last August. ---Staying long---

 

Fresh buy signal today at the close so staying long. To be successful in trading, proper risk management must be used.

 

Can you give us an idea on how you manage risk?

 

First and foremost, I size the position for where the chart tells me the trade is no longer valid. Thus, if the trade falls to that level, I get out with a small loss. Second, I let winners run with full position on until the market shows me a top.

 

Now if it is an investment and not a trade, then the position size in total is calculated to where getting out at a price level of zero will not cost me more than 2 percent of my Total Liquid Net Worth.

 

Sounds similar to what I do. What do you consider a small loss to be. For me it's less than 1% of my portfolio.

Edit. Didn't see your 2% answer in your 2nd post

 

Good up today (4.72 %) and this one is a keeper for now. Monthly chart with the January bar just completed suggests breakout of IHS. ---Up 14.76% from entry at close today.

 

Nice long, smooth ride. Well done! I wish I'd been here when you selected this, because it was a screamin' buy on my charts, but it didn't hit my watchlist. Something I need to work on, obviously.