Today I want to talk about something that repeatedly comes up in Kilo Club, and that is proper money management. How do you figure out what to allocate, and how much to allocate to which trade? This is not financial advice. I am not a CPA and I am not a trading advisor. With that, let's get going and sort this out a little.
You have all seen this from me numerous times, so I am not going to dwell on it, but I want you to visually understand how a pyramid entry works. Scaling and layering in.
When you are up at the all time high, no matter how painful it feels, that is not where you buy. If you miss the trade and it just keeps running, so be it. In the long run you will not be rewarded for buying up there. You want to get in the habit of buying strategically.
Here is the example. I first posted that I was buying more Marvell stock when we were at the 50 EMA and it was a gap fill. Then I posted again that I was buying more when we got down to 190, which was the 100 EMA coupled with some buy signals.
Now here is the part that changes how you should think about every entry you make.
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