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RE: Follow up video: "My thoughts about Daytrading and Account Building trades"
Hi Luc. Great video and thanks for all the help. I just want to clarify something about the AB trades. Lets say you are trading with $300 on an AB chart, but you set layers lower than the range you are trading in case something breaks down. How are you sizing those layers? Are you picking up your normal $300 range trade plus more $300 buys below the range? How do you determine how much you are willing to get in if it starts to break really low? I could see how someone could end up with a lot of coin to get rid of on a low volume chart and get in trouble.
Thanks for your time.
If you are careful to pick charts that have a good story, then you shouldn't run into this problem very often, but it does happen... These are thin book coins, so any big player can force the price down .. So I am always ready to buy the next range lower, and then reduce my position size quickly on any bounce near my break even price.. As soon as I can get even I usualy take half my position off so I am back at a regular size and can continue working the book without effecting it.. You picked the chart because it is whippy and easy to to work... so if it suddenly spikes down, thats a good thing, not a bad thing... Buying more an a quick spike down, on a chart that has a history of whipping around is awesome.
Thanks. That was very clear.