Ask Colin

You refer to an initial position size of 6%.... with minimum entry of 2%. You recommend selling half if the trade is successful and reaches 12% of capital to maintain balance and diversification. In some examples you refer to further purchases as it takes out the top in each swing... Do you mean that you keep buying until your holding equals 6% of capital? Would you ever consider exceeding the initial 6%?

You refer to an initial position size of 6%.... with minimum entry of 2%. I note that you recommend selling half if the trade is successful and reaches 12% of capital to maintain balance and diversification. In some examples you refer to further purchases as it takes out the top in each swing... Do you mean that you keep buying until your holding equals 6% of capital? Would you ever consider exceeding the initial 6%?

The example you referring to was of entry points in a strongly trending stock. Basically, I was saying that there are two ways you can enter - on new highs, which is when the trend is confirmed or on retests of support levels. In either case, I will stay within the 2% to 6% band for position size. I never exceed 6% position size in establishing a position.

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