Where I'm confused is 2/3 of a position is greater than 5/8 of a position. 16/24 vs 15/24. Also confusing is "An allocation is 25k up to 8"
Yeah, I guess even I get confused translating to allocations. From here on out, I will keep the allocation stuff to myself and report in shares. I felt it might be instructive to newbies because "allocations" can work with 10K or 100K, i.e. it is scalable. This is an area newbies invariable have issues. The "An allocation is 25k up to 8" means I am working with 200K in 25K increments. The whole allocation thing is about calibrating the trade risk. It is one thing to hold 25K on a position, another to have 50K, but entirely another to hold 75K, right! If I am going over 25K (one allocation) I am doing an exception. People asked about stops: Here is my reply. The strategy is to clip gains on the momentum and/or volatility from a technical standpoint, while having the "ark universe" as a backstop on the fundamentals. So if a trade gets caught with a big sudden drawdown, I can hold longer term and call it "dead money". If the technicals turn positive, I can buy down. Play the technical, within the fundamentals. Holding Roku 200 @87.09. (~17K or 17.8/25th an allocation)
Got it. It makes perfect sense when you look at it that way. Thanks for taking the time to explain.. Nice trade in ZM.
First time I ever saw this thread. I went to hit the "follow poster" button, but I see I already follow you. You must be doing something right.
Notes from weekend review: Overall getting used to the rhythm of each stock. Should have taken Roku on the second day up. So GTC order placed for a measured two day run maybe next week: Sell all @ 97.48. This is also the range overshoot. New possible trades are IRDM, TXG, SQ and KIND. Based on price action and volume. SQ and KIND are looking best. The exception here is TXG. Possibility of a bounce from here, then another leg down. If a position is taken here, and exit will be very soon. Otherwise, it is a "pass" currently. The rest are good for a bounce and-or a ride up on " a rising tide lifts all boats". When all stocks are going up, it is more of an allocation amount that matters than the picking of stocks. That is where the "brains" are in Bull moves. HOOD looks in trouble. TOST does not look good either. PSTG price action is a no go. Notice the up and down behavior. Not a good choice for getting in and out, because it could be stagnated for too long (weeks). Glad I ditched PLTR. It acts so strange, maybe it is the business model. Super lumpy revenue from the contracts? Lastly, on this Middle East thing. Markets seem to be reacting pretty normally. Oil prices, Global trade etc. At some point it will be priced in and "normalized", maybe as soon as next week. Probably when the ability to attack is degraded "enough". But I thought it would be last week, but also forgot about the MLK holiday. BTW: At the end of June, I will do a report from the IB account to assess the P/L, and some metric about PL/Cost Basis/Time in market. That will be the easiest.
Weekend review: Buy GTC on KIND would have been good one. Gap down and immediate gap fill. Was surprised by the action. Would have could have should have.... PTSG, ACCD is trying a breakout. If it does, then an immediate entry then exit. A lot are basing on their pull backs, HOOD, RXRX, ZM, PLTR, TOST etc. Probably not much of a difference since they are waiting for the Large Caps to finish, then the Medium Caps to move. QCom is strong, but more a longer term hold is a better fit, so will probably pass. Looking for a "climb the wall of worry" next week. Will exit on TOST and ZM on any reasonable move up and some follow through. If they test range or overshoot, will exit. Don't expect they will next week unless the market goes Bull Crazy.