Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Stock swing trading techniques

428 views

Published on

http://-www.marketgeeks.com Stock Swing Trading Techniques - Balance Your Positions Equally discusses using the ATR Indicator to equalize your positions to each other. So that your exposure is equal.

Published in: Business

Stock swing trading techniques

  1. 1. Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  2. 2. Good Day Traders Visit MarketGeeks.com Free Swing Trading Report Please Subscribe To Our ChannelSwing Trading Videos & Trading Tips! Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  3. 3. What Is Position Equalization Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  4. 4. What Is Position Equalization Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  5. 5. Two Unrelated CompaniesLittle Correlation Between Two StocksHow Many Shares Do You Buy Of Each Company? Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  6. 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. 7. Average True Range Indicator Simple Calculation Daily Trading Range 10 Day AverageMost Analysis Software Have ATR Build In Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  8. 8. Check The ATR For Each Stock Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  9. 9. First Thing First Pick The Most Volatile StockFigure Out How Many Shares You Want To TradeEqualize The Second Position To Equal The First One Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  10. 10. The Secret FormulaDivide the larger position by the smaller position andmultiply that number by the share size.In our example the larger positions ATR is .74 and the smallerpositions ATR is .43. (You would divide .74/.43 = 1.69)Multiply the result by the amount of shares you chose to trade themore volatile stock. (1.69 * 100 Shares) = 169 SharesSince 100 shares were chosen for Clorex stock, you would multiply1.69 * 100 shares = 169 shares of Symantec stockTrade 169 shares of Clorex stock for every 100 shares of Clorexstock Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  11. 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. 12. Positions Need Constant AdjustmentATR Is Different Than When First Entered Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.
  13. 13. Thanks For Watching Visit MarketGeeks.com Free Swing Trading Report Please Subscribe To Our ChannelSwing Trading Videos & Trading Tips! Copyright © 2007-2013 Market Geeks, LLC. All Rights Reserved.

×