Learn Swing Trading: Stock Selection, Position Sizing & Risk Control with Leoš Mikulka

In this video, We introduce Leoš, a trader with an engineering and software background. When choosing stocks, he makes use of several screens and looks for patterns using both digital and manual techniques. When fully invested, Leoš usually owns two to eight equities, understanding that not every trade would turn out well. It emphasizes the significance of the risk reward ratio, or R per trade, which contrasts the portfolio's winners and losers. As previously said, this ratio is regarded as the Holy Grail of trading.

He discussed the key metrics for trading success as follow-

• Win-Loss Percentage: The proportion of profitable transactions (wins) over unsuccessful transactions.

• Average Days Held: The mean number of days that deals, both profitable and profitable, are held.

• Risk-Reward Ratio (RR): The proportion of a trade's possible gain to its possible loss. A larger mathematical edge is indicated by a higher RR.

Using Technical Analysis to Choose Stocks

• Trending Names: Equities with a distinct upward trend that have been supported for at least four months by an upward-sloping 200-day moving average.

• Breakouts: Identifies equities with a surge in volume and strength underlying the move that break out from a base (consolidation period).

• Fundamentals: Takes into account variables including sales, fund ownership, and earnings per share during the previous 12 months, but it is not the main focus.

• Themes: Recognizes market patterns and concentrates on top stocks inside

The speaker also covers the topic of stock selection screening. Concentrate on a watch list of the best-performing stocks. Check for strong trend trends, price increases with volume, and recent initial public offerings (IPOs). Examines the manual chart of every stock to find patterns, breakouts, and possible entry points. chooses the portion of the account that is dedicated to each trade, usually between 20 and 25 percent with tight stops. Position size is gradually increased based on past performance. keeps small positions in profitable trades and stays informed about the market after taking partial profits.

Understanding important trading variables, using technical analysis to find high-probability trades, and properly managing holdings are all necessary for successful trading. Through concentrating on distinct upward trends, robust breakouts, and prudent risk control, traders can enhance their prospects of making profits.