![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXlK_JiLfkDjbt29kWfgmIk7l25D_XdtvxUhOLzOzR_ovRqA3qzEatJ2JjwRO9fjQIzXI7_Q7wiIp2I7LGyehU6tcdpOx1n8Y1MkLOXI_6kkpge6-C0uO0U-gI26djwn3RKa_v1WcFy0E/s320/stops.gif)
You can calculate your risk in the trade. In our case it is (142-132=) 10 euro. If you divide this by your acceptable risk level let say 2% of the capital which is 200€, you can find the number of stocks that you are allowed to buy. I used the google calculator to make this simple calculation. As you can see we are allowed to by 20 stocks for this trade.
No comments:
Post a Comment