Hey Brent, question on risk per trade and trading ETF vs Stocks. Let's say you have a trade thesis like stocks are going up and Technology will outperform. XLK up. If sticking to a 2% risk per trade, I could only put on one 2% risk trade on XLK... Or, I could place multiple 2% risk per trade on multiple Technology stocks. In the end, my XLK call is right, but half of the stocks I pick underperform. I don't really want to be an individual stock picker, I just want to get size on for my trade. Would have been better off just buying XLK. Wanted to hear your thoughts on this, how to trade macro idea but still get size on? Would it be better to take one XLK trade with 6%-10%+ risk instead of spreading the risk around?
excellent
good read
Great Read, and super important subject. Appreciated, as ever.
Hey Brent, question on risk per trade and trading ETF vs Stocks. Let's say you have a trade thesis like stocks are going up and Technology will outperform. XLK up. If sticking to a 2% risk per trade, I could only put on one 2% risk trade on XLK... Or, I could place multiple 2% risk per trade on multiple Technology stocks. In the end, my XLK call is right, but half of the stocks I pick underperform. I don't really want to be an individual stock picker, I just want to get size on for my trade. Would have been better off just buying XLK. Wanted to hear your thoughts on this, how to trade macro idea but still get size on? Would it be better to take one XLK trade with 6%-10%+ risk instead of spreading the risk around?
Hi Brent, check out the bitcoin dominance index, it's similar to short ETH/BTC, can be traded on Binance and a few other platforms.
Thesis is bullish BTC, and bearish everything else in the crypto world for 3 to 6 months.
Sort of relative strength trade as well, as trader/investors in crypto world goes "risk off" into BTC.