What the record teaches
Library
Nothing here is theory for its own sake. Every rule and setup links to the trades behind it, and every concept is explained from zero.
Concepts
The vocabulary. Start here if a word on this site is new to you.
- Gap risk: when the stop doesn't save youIf a stock opens below your stop, the stop fills at the open, not at your price. Holding overnight always carries this risk, and the record shows it.
- Moving averages: the 8, 21, 50, and 200-weekA moving average smooths price into a trend line. Four of them do most of the work in this record: the daily 8 EMA, 21 EMA, 50 SMA, and the 200-week VWMA.
- Partial profits and the break-even stopSell part of the position into strength, then move the stop on the rest to entry. The trade can no longer become a real loser, and the remainder gets room to run.
- Position sizing: size comes from the stopYou don't pick how many shares to buy. You pick how much you're willing to lose and where your stop is; the share count falls out of the math.
- R: measuring every trade by its riskR is the amount you planned to lose if the stop hit. Every result on this site is a multiple of it, so a trade reads the same at any account size.
- The stop: deciding where you're wrongA stop is the price that proves the trade idea wrong. It's chosen before entry, placed as a live order, and only ever moved in your favor.
- Trailing stop: the daily close below the 8 EMAAfter the first trims, the remainder rides until the stock closes a day below its 8 EMA. It's a rule that lets winners run without guessing the top.