Hubert Senters here.
Let’s go through the stock symbol, ALB. This is one of the stands that I do everyday and this is in my model portfolio so I know this is a decent long for me to trade on the long side.
So as you can see obviously, it’s above Ichimoku cloud here and it’s green. I want to buy pullbacks and or breakouts.
Then what I’m going to do is I’m going to bring out this two minute chart right here and then look at it to show you how I would, you know, figure out if I’m going to take the risk reward ratio on this trade.
So when it opened up I already know it’s in a pretty good uptrend. Let it trade and then you can see it saying hey, you should be long at $88.25.
I can’t do that because it’s already passed $88.25. It’s already passed my first target at $88.48 and $88.70. Modify that what you can do is you can just say I’m going to go long at the close with that first two minute bar so you would be long here at $88.74. In this situation,
I pretty much know I’m risking. I can just eyeball it and say I’m risking $2.78 ATR so anything below three or four I’m okay with. And then all I do is i just scale out at the same type of scale.
This is how I really do it right here. This is the box of risk right there. So if I’m long there I know I’m going to be one box of target and then another box of target. So what I would do is very simple is I would exit at $88.97. And then also a quarter at $89.20.
And then my last stop-loss would trail me out right here at about $89.56 for 4.9X. That’s good so when you think about risk reward ratios I want to risk one to make it at least three or risk to one at least to make it five. In this case scenario, I was out of three quarters.
In this example, out of three quarters and then on the last quarter out at basically 5X, 4.9X.
And that’s how you do it.
Mark Helweg and myself is going to be doing a special webinar on ‘How to Take Minnow Risk to Target Whale Profits’ Wednesday, February 19th at noon EST. I will lead you over to this form so you can opt-in and attend the live webinar.
Good luck. Hope it helps. See you on the next video.
Hubert.
