9 Comments on “Background information for swing trading videos”

  2. Hi there Adam, thanks for sharing the vid. Just a question, when you increase your initial stop, do you add positions accordingly? The reason I asked this is that since you have a new stop in place, you can add a little more size on the trade. When the price moves towards that stop you still lose the same fixed dollar amount you risked initially.

  3. Hi Paulo,

    No. Never. The point of moving the initial stop is to reduce risk in the trade… as the stop is moved the probability of it being hit, all other things being equal (and they never are), actually increases. Adding size against the new stop would actually increase the expected risk in the trade, which fights against building consistency.

    Within the first several days I’ve usually eliminted 30%+ of the risk in the trade.

    Something like you suggest is possible… just really work through it and make sure it makes sense.

  4. hi Nils,

    I showed the formulas in the sheet so you can build it yourself. Freeze the video near the end and look at the formulas which are showing.

  6. I did. They are in the video. Look at the sheet near the end of the video and pause it. You will clearly see the formulas in the cells.

  8. Thanks for the reply Adam that makes sense. I didn’t see it from a risk point of view (adding more size) Would like to get your thoughts on taking profits…do you take some off already at 1R?

  9. Two things I heard in your video that I “agree” 100%…”consistent singles” and “risk number has to be consistent” …ah yess and also about stops and placing them , initially, at a point where you get the answer to the question “where has this trade have to go for me to be proven wrong?”

    -isn´t the style of trading you describe a bit “”anti-SMB” ? Bella and Steve like very tight stops and home runs.

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