Stock Swing Trading Techniques - Balance Your Positions Equally

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What Is Position Equalization
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What Is Position Equalization
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Two Unrelated Companies Little Correlation
Between Two Stocks How Many Shares Do You Buy Of
Each Company?
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Unbalanced Positions Cause Problems Profits Are
Not Even Losses Are Not Even 7 winners 1.00
7.00 3 Losers 3.00 9.00 You lost 2.00
dollars and you were right 70 of all
trades
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Average True Range Indicator Simple
Calculation Daily Trading Range 10 Day
Average Most Analysis Software Have ATR Build
In
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Check The ATR For Each Stock
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First Thing First Pick The Most Volatile
Stock Figure Out How Many Shares You Want To
Trade Equalize The Second Position To Equal The
First One
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The Secret Formula
Divide the larger position by the smaller
position and multiply that number by the share
size. In our example the larger positions ATR
is .74 and the smaller positions ATR is .43. (You
would divide .74/.43 1.69) Multiply the result
by the amount of shares you chose to trade the
more volatile stock. (1.69 100 Shares) 169
Shares Since 100 shares were chosen for Clorex
stock, you would multiply 1.69 100 shares 169
shares of Symantec stock Trade 169 shares of
Clorex stock for every 100 shares of Clorex stock
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Profitability Is Just One Piece To The
Puzzle
All Positions Need To Be Balanced
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Positions Need Constant Adjustment
ATR Is Different Than When First Entered
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