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32 thoughts on “How to manage position sizing”
  1. Avataaar/Circle Created with python_avatars @estebanfalcon9046 says:

    Thank you Ross.

  2. Avataaar/Circle Created with python_avatars @newly_knowledgable_assistant says:

    I use a spreadsheet that sits on my iPad on my desk to calculate position size. I have to input account size, share price, ATR, swing low, and percent of account to risk per trade (I only trade long). It spits out stop loss, target price per share as a ratio and profit targets as a percentage, total at risk, and risk per share. Its slower than jumping in on intuition but it helps me see relatively quickly whether or not I have a realistic expectation of the trade's outcome. I often visualize the moon but the spreadsheet says "not likely to happen" most of the time.

  3. Avataaar/Circle Created with python_avatars @triton136 says:

    Hello Ross! first of all, I enjoy and learn something new from every video you produce – thank you. Every time you speak about risk, you do it by measuring the number of shares in your position, instead of measuring by the dollar amount. If I am considering entering a position for a stock at a price of $20.00, I would do so thinking I want to place the order not exceeding $10,000 (this is my limit per trade). So I would buy 500 shares. However, if the stock is $10.00, I would buy 1,000 shares. This way the size of my order remains the same for either price, $10,000.00/order. Should I not think in terms of order size? Thanks.

  4. Avataaar/Circle Created with python_avatars @thandosisilana425 says:

    Hi Ross, your hoodies its a second time now i'm noticing you, where do you get them please king?

  5. Avataaar/Circle Created with python_avatars @bbqjase1112 says:

    Great video Ross! Lots of good info here, wonder what the result would be if you took a months worth of trades data and ran it through a spreadsheet with a position size of 3000. How different is the result to what you do instinctively? Love your course as well, the best one out there!

  6. Avataaar/Circle Created with python_avatars @signedelacroix7213 says:

    Does market makers hate dollar share size and would prevent stock going up while I holding? As soon I sell it goes high in 3 min.

  7. Avataaar/Circle Created with python_avatars @blackcatvibing says:

    Going green is all what matters even if the profit is small compared to the money at risk better safe then sorry

  8. Avataaar/Circle Created with python_avatars @moisesbehar2464 says:

    I think it's a good idea to try trading with a fixed share size as an experiment. 3000 is too low for Ross though. I think 7000 makes more sense.

  9. Avataaar/Circle Created with python_avatars @xtraterastrielrede5513 says:

    ~ Scaling out… It's about leaving a trade early enough for buying continuation to allow the up-tik to sell your position of the trade, locking in profit.

  10. Avataaar/Circle Created with python_avatars @markeger7611 says:

    Hey Ross!
    I would like to ask, what do I have to pay attention for at selling, if I am scalping with bigger position sizes (100k-200k USD)? Volume or Float? Or at this level I should better scale out gradually than just sell all in one?

    Thanks a lot!

  11. Avataaar/Circle Created with python_avatars @LuisSanchez-dc2zp says:

    NO ONE LIKE THE VIDEO ANYMORE!! Its at a perfect number lol

  12. Avataaar/Circle Created with python_avatars @tammyk.b5493 says:

    Enjoyed it

  13. Avataaar/Circle Created with python_avatars @jarredbooth1735 says:

    The alarm bell in my head went off when he said: "Made four grand on it yesterday." I'm always more cautious on the day after a breakout.

  14. Avataaar/Circle Created with python_avatars @starlinjimenez6195 says:

    I really enjoy this format. Really good stuff keep it up. Hopefully, you do more videos like this.

  15. Avataaar/Circle Created with python_avatars @nuthinbutbusiness says:

    Quick question.. let’s say I have a margin account and I want to risk 2% per trade. Do I risk 2% of my cash amount or 2% of my buying power? For exemple let’s say I have 1,000$ cash and 3,300$ of buying power.

  16. Avataaar/Circle Created with python_avatars @BrokeAgain says:

    Happened to me just last 2 week, got better on small position size and finally getting consistent making $300/400/100 on large cap then my biggest one ever $500+ then got somewhat over confident.. then the next week comes… >>bam<< 1000 shares size… saw my loss $ – 200 then -$300 then – $500 seeing this big loss just mentaly and physically paralyzed me big time… Its like I rather hold the loss coz I wont accept… then bailed out finally then, I went on revenge trading… got back in… then down again -$1000+, then went kamikaze mode fired up all my nuclear arsenal (Buying power Max)/.. then finally down -$4000 throwed my white flag… now I am watching youtube, meditating… looking back on what happen, learning.. licking my wounds… watching all Ross videos, since I am too cheap to buy the class yet…. but this video helps. Thanks!

  17. Avataaar/Circle Created with python_avatars @matthewcaskey1051 says:

    As always a good video. I have to suggest however that when trading it might not necessarily be trading itself throwing you off. Take a few steps back and make sure you are not missing something. Could be that someone else is on fire and feel the pressure to do better, could be something as simple as a change you unwittingly let pop up in life. But step back look at the entire picture and make sure. I know I get too focused sometimes causes me to neglect other things and got to rally back and get general life back in perspective. Keep up on the video's though you are great Ross!

  18. Avataaar/Circle Created with python_avatars @JR-eq6jz says:

    Blue light glasses are also known as Sex Offender glasses, cus that is what you look like. Never leave house with them on 🙂

  19. Avataaar/Circle Created with python_avatars @RPGmario64 says:

    Ever consider using smaller share size on higher volatility market conditions and larger share size on lower volatility market conditions? Doing it this way you’ll always keep the risk and potential reward the same. With larger share size on slower days, you won’t need as big move to make good money. And on the flip side, using smaller share size on higher volatile days will prevent huge losses. I trade larger cap stocks so maybe this type of strategy won’t work as well on low float, but just my 2 cents.

  20. Avataaar/Circle Created with python_avatars @nathanielelzie8898 says:

    Ross is the goat

  21. Avataaar/Circle Created with python_avatars @danilosoave says:

    Hey Ross, I think this problem is just the "nature of business" we just deal with it.. hehe. The only good tool to help out with that (in my opinion) is tighter stops when share sizes are too high. In other words, bail out right away if doens't move in the right direction.

  22. Avataaar/Circle Created with python_avatars @Eli-rh1ev says:

    Does share size have a direct relationship to FOMO, has the FOMO not quiet down after so many years of trading. Do you not feel like you succeed. Is FOMO stronger now then before.

  23. Avataaar/Circle Created with python_avatars @michaeldimattia9015 says:

    I was totally struggling with increasing position size too fast, and the emotions that come with that. I'd always pick the worst trades to jump into large (usually after a run of small wins). To combat it, I shrunk to a comfortable size, and did a 20 day disciplined schedule. If I traded more than my set size, I had to start over until I was successful with not allowing FOMO and ROMO to affect my plan. That 20 day sample size seems to be the minimum to get a feel for a change in your system. A nice backtest would help too!

  24. Avataaar/Circle Created with python_avatars @pharahkhanmuhammed3311 says:

    Wow! we're forever ready to be part of your community because you always bomb us with fantastic videos filled with incredible information. GOOD JOB. I need your help with these questions.

    1. What criteria do you use to select stocks that have the potential to spike higher?

    2. How do you scan for momentum stocks and what software do you use for scanning?

    3. May I know the broker/platform you use for trading and can I use it here in West Africa Ghana?

    4. How do you identify a pullback in the market?

    5. Do you believe in news, if yes? what makes it credible and where do you find them as well as how do you fish out authentic news from noise in the market?

  25. Avataaar/Circle Created with python_avatars @moa3810 says:

    And Ego says: If you restrict the share size to 3000 then I'm gonna have to stretch 10 cents to 20 cents per share or "work" longer every day!

  26. Avataaar/Circle Created with python_avatars @theweeve says:

    Stock price is a big factor for me when determining entry size. The cheaper the stock, the more inexperienced traders will be present. That means I need to be extra cautious. Low float, cheap stocks are usually erratic, and defy what we would normally expect in terms of technical indicators, patterns, trends, etc.. I also suspect HFT kicks into gear when cheaper stocks run, potentially causing even more "technical turbulence". Your comment about there sometimes being something behind the scenes that is hard to detect especially rings true with cheap, low float stocks with catalyst. It's probably the chaos of all the different trader types present.

  27. Avataaar/Circle Created with python_avatars @James-fv8vs says:

    Love your vids and honesty, Ross! Have been watching for years. Was wondering if you have a course for people who already know technical analysis and just wanna see what your strategy is like! =]

  28. Avataaar/Circle Created with python_avatars @abosultan501 says:

    Why is he so nervous lol

  29. Avataaar/Circle Created with python_avatars @michaelpopovich says:

    I guess I’m confused and I am very new to the Warrior Pro family (last week) but doesn’t your rules dictate the trade size? If you say your max daily loss is $100 and you’re looking to enter into your first trade would your stop on the trade and your max loss tell you the trade size you can take?

  30. Avataaar/Circle Created with python_avatars @jasonbaker2998 says:

    Ross ever think about taking in another intern? Might help you audience relate, cycle threw a luck participant every few months. how about a middle aged guy for Arizona wanting to make a change in his life. willing to relocate for a few months and get his hustle on…. Could be interesting…

  31. Avataaar/Circle Created with python_avatars @peterfurgiuele3327 says:

    This is an unrelated topic, but do you worry about incurring deferred losses from wash sale rule? or do you just have it worked out through traderlog after each year? thanks for all the instructing you share.

  32. Avataaar/Circle Created with python_avatars @hammer736 says:

    Ross, I've been considering CMEG for a while, when you sign up it says DAS or Sterling, any difference?

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