Comments on: First two months of The Damn Thing v2.0 http://www.uglychart.com/2008/05/16/first-two-months-of-the-damn-thing-v20/ Beauty is in the eye of the shareholder Mon, 08 Sep 2008 18:45:17 +0000 http://wordpress.org/?v=2.6.1 By: moom http://www.uglychart.com/2008/05/16/first-two-months-of-the-damn-thing-v20/#comment-36621 moom Fri, 23 May 2008 07:14:41 +0000 http://www.uglychart.com/2008/05/16/first-two-months-of-the-damn-thing-v20/#comment-36621 It migth help to clarify that risking $100 means that that was the maximum that could have been lost if the market went against the trade and the stop loss order was hit. So for example if they bought 100 shares of a stock trading at $50 and set a stop loss at $49 R=$100. Then if instead the stock rose to $52 and they then sold they made $200 or 2R. This really puzzled me when I first began reading these blogs - what did people mean by "risking $100". It migth help to clarify that risking $100 means that that was the maximum that could have been lost if the market went against the trade and the stop loss order was hit. So for example if they bought 100 shares of a stock trading at $50 and set a stop loss at $49 R=$100. Then if instead the stock rose to $52 and they then sold they made $200 or 2R.

This really puzzled me when I first began reading these blogs - what did people mean by “risking $100″.

]]> By: Mike http://www.uglychart.com/2008/05/16/first-two-months-of-the-damn-thing-v20/#comment-36584 Mike Sat, 17 May 2008 19:37:41 +0000 http://www.uglychart.com/2008/05/16/first-two-months-of-the-damn-thing-v20/#comment-36584 Hi Sarah, welcome to uglychart.com R is how much was risked on a single trade. For example, if I risk $100 on one trade and make $100, then I have made 1R. If I risk $200 on another trade and make $200, then I have now made a total of 2R. A 34% win rate means that 34% of the trades are profitable, while 66% lose money. Luckily the trades that make money make more than the combined loses of the losing trades. Let me know if you have more questions. Hi Sarah, welcome to uglychart.com
R is how much was risked on a single trade. For example, if I risk $100 on one trade and make $100, then I have made 1R. If I risk $200 on another trade and make $200, then I have now made a total of 2R.
A 34% win rate means that 34% of the trades are profitable, while 66% lose money. Luckily the trades that make money make more than the combined loses of the losing trades.
Let me know if you have more questions.

]]> By: Sarah Parker http://www.uglychart.com/2008/05/16/first-two-months-of-the-damn-thing-v20/#comment-36583 Sarah Parker Sat, 17 May 2008 18:55:39 +0000 http://www.uglychart.com/2008/05/16/first-two-months-of-the-damn-thing-v20/#comment-36583 Hi Ugly, I am new but a regular to your blog. I don't know what you mean by R (risk) and how you calculate it. What do you mean when you say that you'r up 32R? Also can you clearify 34% win rate. Does this mean that 34% of your trades resulted in a win or you made 34% profit. Thanks, ~Sarah Hi Ugly,
I am new but a regular to your blog. I don’t know what you mean by R (risk) and how you calculate it. What do you mean when you say that you’r up 32R?
Also can you clearify 34% win rate. Does this mean that 34% of your trades resulted in a win or you made 34% profit.
Thanks,
~Sarah

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