So here are my trade tickets for $LVS today, I don't have enough to do the graph and all that.
Basically I shorted it at 51.73 and my risk was only .20 cents. The way I calculate my risk is that everyday I am willing to only risk $10 of mine. Therefore pay attention in the following calculation:
Side Note: Shorting is when you attempt to profit from a stock going DOWN. (thats what I did)
Risk = $10
Risk trading stock = .20 cents. (which means if it goes .20 cents against me I will exit the trade)
To figure out how many shares I need to trade to stay within my risk tolerance please follow:
$10 / .20 risk = 50 shares
Therefore I will only Trade with 50 shares in this trade, what that allows me to do is not act like an idiot when the trade goes against me, I know I will only lose $10, nothing MORE!
Here are my trade tickets for today:
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