The best thing about a down day is that it will usually provide some dip-buying opportunities. The Power Dip selection for Thursday is above. I will be going long at the open and will be using a 10% stop.
Joined Nov 11, 2007
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6 comments
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10% stop? isn’t that excessive?
Not really. Shed has been moving his stops out due to the volatility for a while now.
Joe, for some setups, I use a 50% stop.
Volatility is great to trade for large percentage gains, but you cannot set stops and use position sizing like you would use for something that moves 1-2% a day at best.
I have rigorously backtested the Power Dip system and a 10% stop works very well. I also use 1% risk on these.
Did anyone else ride this Power Dip! It’s a good ‘un!