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Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Good Day Traders

               Visit
         MarketGeeks.com
     Free Swing Trading Report

 Please Subscribe To Our Channel
Swing Trading Videos & Trading Tips!




      Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
What Is Position Equalization




    Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
What Is Position Equalization




    Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Two Unrelated Companies

Little Correlation Between Two Stocks

How Many Shares Do You Buy Of Each
           Company?




      Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Unbalanced Positions Cause Problems

             Profits Are Not Even

             Losses Are Not Even

       7 winners = $1.00 = $7.00

        3 Losers = $3.00 = $9.00

 You lost $2.00 dollars and you were right
             70% of all trades
         Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Average True Range Indicator

              Simple Calculation

            Daily Trading Range

                  10 Day Average

Most Analysis Software Have ATR Build In




        Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Check The ATR For Each Stock




    Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
First Thing First

       Pick The Most Volatile Stock

Figure Out How Many Shares You Want To
                Trade

Equalize The Second Position To Equal The
                First One




         Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
The Secret Formula
Divide the larger position by the smaller position and
multiply that number by the share size.
In our example the larger positions ATR is .74 and the smaller
positions ATR is .43. (You would divide .74/.43 = 1.69)

Multiply the result by the amount of shares you chose to trade the
more volatile stock. (1.69 * 100 Shares) = 169 Shares

Since 100 shares were chosen for Clorex stock, you would multiply
1.69 * 100 shares = 169 shares of Symantec stock

Trade 169 shares of Clorex stock for every 100 shares of Clorex
stock


                Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Profitability Is Just One Piece To The Puzzle

     All Positions Need To Be Balanced




          Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Positions Need Constant Adjustment
ATR Is Different Than When First Entered




        Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
Thanks For Watching

               Visit
         MarketGeeks.com
     Free Swing Trading Report

 Please Subscribe To Our Channel
Swing Trading Videos & Trading Tips!




      Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.

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Stock swing trading techniques

  • 1. Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 2. Good Day Traders Visit MarketGeeks.com Free Swing Trading Report Please Subscribe To Our Channel Swing Trading Videos & Trading Tips! Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 3. What Is Position Equalization Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 4. What Is Position Equalization Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 5. Two Unrelated Companies Little Correlation Between Two Stocks How Many Shares Do You Buy Of Each Company? Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 6. Unbalanced Positions Cause Problems Profits Are Not Even Losses Are Not Even 7 winners = $1.00 = $7.00 3 Losers = $3.00 = $9.00 You lost $2.00 dollars and you were right 70% of all trades Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 7. Average True Range Indicator Simple Calculation Daily Trading Range 10 Day Average Most Analysis Software Have ATR Build In Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 8. Check The ATR For Each Stock Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 9. First Thing First Pick The Most Volatile Stock Figure Out How Many Shares You Want To Trade Equalize The Second Position To Equal The First One Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 10. The Secret Formula Divide the larger position by the smaller position and multiply that number by the share size. In our example the larger positions ATR is .74 and the smaller positions ATR is .43. (You would divide .74/.43 = 1.69) Multiply the result by the amount of shares you chose to trade the more volatile stock. (1.69 * 100 Shares) = 169 Shares Since 100 shares were chosen for Clorex stock, you would multiply 1.69 * 100 shares = 169 shares of Symantec stock Trade 169 shares of Clorex stock for every 100 shares of Clorex stock Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 11. Profitability Is Just One Piece To The Puzzle All Positions Need To Be Balanced Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 12. Positions Need Constant Adjustment ATR Is Different Than When First Entered Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  • 13. Thanks For Watching Visit MarketGeeks.com Free Swing Trading Report Please Subscribe To Our Channel Swing Trading Videos & Trading Tips! Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.