WEBVTT 00:00:04.400 --> 00:00:08.100 It looks like the audience once a little bit more information 00:00:08.100 --> 00:00:11.600 on how you scale into position. 00:00:11.600 --> 00:00:18.800 I could have told you that was going to be something that is probably a 00:00:18.800 --> 00:00:21.300 good example would be with squares. 00:00:21.300 --> 00:00:22.200 Probably good example. 00:00:22.200 --> 00:00:25.200 Twitter's probably a good example to bring up. 00:00:25.200 --> 00:00:30.200 Let's look at Twitter something that this is a stock that we own 00:00:30.200 --> 00:00:34.400 right now and this came off of a little bit of a sloppy load 00:00:34.400 --> 00:00:36.700 sheet back on them. 00:00:36.700 --> 00:00:38.600 Just get the right day to make sure I'm giving you the right 00:00:38.600 --> 00:00:41.400 information. Yes, so we bought it on for 7. 00:00:42.400 --> 00:00:46.200 It was it was actually came through that load sheet in the next 00:00:46.200 --> 00:00:49.700 day pulled back a little bit and I started buying it as it turned 00:00:49.700 --> 00:00:50.400 up right there. 00:00:50.400 --> 00:00:54.400 So this is one where I took a partial position. 00:00:54.400 --> 00:00:58.000 I'm here because I again I felt like it was going to run into 00:00:58.000 --> 00:01:01.200 some Supply and probably still build the right side which is doing 00:01:01.200 --> 00:01:02.900 perfectly this is very natural. 00:01:02.900 --> 00:01:09.100 And now if this sets up here and can tighten up and break out 00:01:09.100 --> 00:01:13.100 from this most recent pivot, which now I call it sheet of I will 00:01:13.100 --> 00:01:18.200 I will add to the position and I'll add there so actually 00:01:18.200 --> 00:01:21.600 paying a little bit higher but I'm not going to just add just 00:01:21.600 --> 00:01:23.800 because the stocks up a lot of people say what you know, 00:01:23.800 --> 00:01:27.600 what are you do you add when it's at 1% 2% 3% know I'm 00:01:27.600 --> 00:01:33.100 only adding from Recess that's another pivot and almost always 00:01:33.100 --> 00:01:37.000 it's going to be higher than virtually 99.9% of the time that 00:01:37.000 --> 00:01:38.100 pivots going to be higher. 00:01:38.100 --> 00:01:41.000 I wanted to be at a higher price if it's lower. 00:01:41.000 --> 00:01:42.100 I'm at a loss and I'm popping. 00:01:42.400 --> 00:01:45.400 Looking looking to add that's would be averaging down. 00:01:45.400 --> 00:01:49.000 So again this needs to know set up that right side square. 00:01:49.000 --> 00:01:51.600 Of course we talked about it's also setting up and could set 00:01:51.600 --> 00:01:55.100 up that handle but that would be the way that I would be no 00:01:55.100 --> 00:01:56.700 pyramid into into a name. 00:01:56.700 --> 00:02:02.500 We talked a lot about 10 stocks with a full position being 00:02:02.500 --> 00:02:07.400 at 10% How do you determine what would be a partial position 00:02:07.400 --> 00:02:10.600 to you? And then what percentage are you at? 00:02:10.600 --> 00:02:12.300 And when you do get that new setup, 00:02:12.300 --> 00:02:18.400 typically that's really a very personal decision that you know, 00:02:18.400 --> 00:02:23.500 your level of concentration is got to be based on a few things 00:02:23.500 --> 00:02:24.800 one your own risk tolerance. 00:02:24.800 --> 00:02:28.700 So and and there is some optimal levels mean if your a two-to-one 00:02:28.700 --> 00:02:32.200 traitor if your average gain is 2 * Roberts lost in your 50% 00:02:32.200 --> 00:02:36.000 batting average, your optimal trading position is 25% That's 00:02:36.000 --> 00:02:38.800 what optimal a for the Kelly formula would tell you so that 00:02:38.800 --> 00:02:41.600 would be what you'd try to shoot for optimally. 00:02:42.400 --> 00:02:45.500 I found that to be short of sort of The Sweet Spot in 01. 00:02:45.500 --> 00:02:48.200 And again, that's not where you want to always be at that point. 00:02:48.200 --> 00:02:50.700 You'll maybe you're just getting into the market and you're 00:02:50.700 --> 00:02:51.500 coming from cash. 00:02:51.500 --> 00:02:54.200 You take 5% position to 10%. 00:02:54.200 --> 00:02:56.400 If you work yourself up to bigger positions, 00:02:56.400 --> 00:03:01.000 you know, I'm taking gigantic positions right now it with what 00:03:01.000 --> 00:03:01.900 I've been doing this year. 00:03:01.900 --> 00:03:06.400 And that's just recently, you know, when you're in the US Open 00:03:06.400 --> 00:03:09.100 Championship, if you want to win you got to trade like an animal 00:03:09.100 --> 00:03:10.800 because the other guys are trading like animals. 00:03:10.800 --> 00:03:11.800 It's kind of like sports. 00:03:11.800 --> 00:03:15.500 You know that the NFL guys they got to take steroids because 00:03:15.500 --> 00:03:18.000 the guy on the other side of the teams two piece on steroids, 00:03:18.000 --> 00:03:21.500 you know, so what so you got to do what you got to do. 00:03:21.500 --> 00:03:24.800 But again, you know, I've been doing this for 37 years. 00:03:24.800 --> 00:03:26.500 So I would I would recommend that, 00:03:26.500 --> 00:03:28.700 you know, you never have a position size probably bigger than 00:03:28.700 --> 00:03:35.600 you do 50% of your portfolio for stocks for margin or and optimally 00:03:35.600 --> 00:03:39.700 maybe for stock is divided into four or five names and you'd 00:03:39.700 --> 00:03:42.200 be 5 maybe 8 or 10 names. 00:03:42.400 --> 00:03:43.300 You're fully margin. 00:03:43.300 --> 00:03:45.400 So that's where the optimal level would be. 00:03:45.400 --> 00:03:49.700 You knowing that at 25% for your biggest position sizes.