Monday, October 4, 2010

Why I reduce position size on speculative longs during choppy conditions...



Here's why I reduce position size on speculative longs especially when the overall markets are a bit choppy. Look at the KH set up I posted over the weekend. This morning it triggered an entry @ $14.70 (yellow circle) only to turn around and stop out $!4.00 in the afternoon (red circle).

Speculative stocks are generally extremely volatile and when you add in choppy market conditions this further reduces the odds of success. So reduce position size!

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