171: How to survive market sell-offs – Perry Kaufman
Better System Trader
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Do You Need to Bracket the Volatility?
I was just pointing out that low price stocks are much riskier than high price stocks. So you didn't miss on one was for calculating the position size, but that doesn't stop other stocks from running away to the upside. We're really talking about two different situations. Even for Tesla, when it's at a very high price, I'm taking my $10,000 investment divided by the price to get my position size. As the price goes up, my position size will get smaller. In general, a stock do have a way of getting very volatile on the upside, and you have to be prepared for that risk.
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