http://spreadsheets.google.com/pub?key=p4P2Qbq7qqC1UZpy1VImeAw
Tim West presented on "How to GET OUT of Trades" using unique trend identification methods, time principles, psychological principles and his version of Market Profile.
The group picks totalled a whopping 21 ideas, so each position has a risk of $4762. Divide the $4762 by three times the 11-day average true range (ATR) to find your POSITION SIZE. The LARGEST position this month in dollars is Tom Murphy's Australian Dollar short position at (-$234,184) and the smallest position is Chris Besescheck's position of $4,762 of ACTC- Advanced Cell Tech. Other notable small dollar positions are Walter Holder's JRCC & AKS which total $17,204 and David Brandman's ETFC long & PALM short which toal $14,919. Position SIZE is important so that each idea has an equal LIKELY impact on the portfolio in terms of dollars at risk.
The equation for position size = [ $RISK /(3 X 11-day ATR)]
We manage a $1,000,000 hypothetical portfolio and we risk 10% per month.
We have 21 ideas this month, so $100,000 of risk spread across 21 ideas = $4762 per full idea. If you split your "idea" into two ideas, then your risk is $2381 per 1/2 idea. Now you have the methodology that you can apply to your own portfolio.
Our next meeting may include a GREEN presentation on "How to save money in your home using green technologies" - stay tuned !
Feel free to contact me at twest@compocapital.com
To contact Barbara Rockefeller - http://rts-forex.com and go to Amazon.com to order her books.
The next meeting will likely be at the end of July - the last Wednesday.
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