How do our signals work? – GLM STOCK SIGNALS™
An example of our signals would be “$PRGO SHORT BELOW $65.20, SL $66.30, TP (X)”
You would use a STOP LIMIT order… your stop will be $66.30 and your limit will be at least 4 cents below your stop. We like to put our limit order 4-10 cents depending on the stock.
This is the same in the reverse direction…
“$PRGO LONG ABOVE $66.30, SL $65.30, TP (X)”
STOP – $66.30…LIMIT $66.34 <— This is the order you would enter into your montage.
Your STOP… the stop will be at $65.30 and you can use a hard stop or a mental stop, the $65.30 cent stop will be based on your desired entry price…I.E…$66.30.
What are R’s? – GLM STOCK SIGNALS™
How many shares?
R = your risk unit (what you’re willing to risk per trade)
If you are trading a setup/plan with a $0.20 cent stop loss and you’re willing to risk $50.
You calculate share size: 50/0.20 = 250 shares.
The number of R’s you collect is calculated by the move.
1R (1:1) = $0.20
2R (2:1) = $0.40
3R (3:1) = $0.60
… and so on.
Ideally, you want to take a partial before 1R; some prefer 0.5R. Some look for 0.8R. Then you set the rest of your position to a break-even stop.
Save this, practice it, and make this part of your constant thought process before entering a trade.
This is more IMPORTANT than you can imagine.