Shane Blankenship
Adjusting Stops for Volatility
When volatility changes so must our stops and we need to keep in touch with this. Here I review how to calculate stops using a simple Average True Range method (ATR) that I mentioned in Foundations of Trading Part 6 Risk Management. I also go over the current 20-minute currencies to show how to keep in touch with this volatility.
Simply Noticing: Carnival Cruise Line
Trading doesn’t have to be overly complicated and we don’t need to predict the future. We can look outside all the news, noise and see what price is doing. In this video, I simply notice where buyers keep picking up Carnival Crusie Line (CCL) every time it comes down during a crisis.
Foundations of Trading Part 6: Risk Management
In Foundations of Trading Part 1, I stated the number one rule was the preservation of capital. We have no control over what markets do but we can take control of our money management and risk. In this video, I lay out some basic guidelines for working out maximum stop size with ATR (average true range) and designing our risk management plans. The image below shows an older example of a maximum stop size for AUD and ES. In the video, I show how to get the current maximum stops. You can use my simple guidelines for ideas in creating your own risk management plan and then ingrain it to the point where it’s not a discipline but a normal part of trading life.
