📺 In this Presentation video, Larry Tentarelli discusses the critical importance of risk management in trading, emphasizing the need to know and control potential losses before entering any trade. This was a webinar with the IBD Boston Meetup Group on 5/22/24.

Larry explains that position sizing is a key focus for professional traders to prevent significant capital loss during market downturns, advocating for a maximum risk of 1% of account equity on any single position.

The conversation also touches on the importance of understanding the volatility of different stocks and adjusting stop-loss levels accordingly.

He stresses the need for traders to adopt a disciplined approach to trading, including using hard stops and scaling out of winning positions to protect gains and maintain psychological stability.

00:00:00 Intro
00:02:58 Introduction of Larry Tentarelli
00:04:49 Position Trading Explained
00:05:44 Reactive vs Predictive Trading
00:07:33 Importance of Focusing on One Timeframe
00:10:01 Importance of Risk Management
00:12:54 Example Charts: Eli Lilly and Nvidia
00:15:42 Risk Management and Position Sizing
00:19:06 Entry Signals and Automation
00:24:25 Entry Signals and Methods
00:35:43 Detailed Risk Management Discussion
00:43:11 Use of ATR for Volatility-Based Stops
00:45:57 Daily Assumption that Positions Are Wrong
00:47:28 Selling Strategies for Position Traders
00:50:17 Importance of Timeframes and Market Trends
00:53:17 Chart Analysis and Upper Right Hand Breakout
00:55:08 Stop Market vs. Stop Limit Orders
00:57:38 Avoiding Cute Limit Orders
00:59:32 Rule for Selling Half and Raising Stops
01:01:08 Discretion in Closing Positions
01:03:53 Importance of Market Trends in Trading
01:05:40 Example of First Solar Breakout
01:09:45 Trading During Choppy Market Environments
01:11:35 Sector Exposure and Adding Risk
01:13:42 Treating Trading as a Business
01:15:23 Trading Is Predominantly Mental
01:18:24 Protecting Capital and Risk-First Evaluation
01:20:30 Importance of Consistency and Discipline

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✅ CONNECT WITH LARRY
X/Twitter: https://twitter.com/bluechipdaily

💼 ABOUT LARRY
Larry Tentarelli is the President and Founder of the Blue Chip Daily Trend Report.

Larry has been actively involved in markets as a trader and investor since 1998 and was an advisor with Merrill Lynch for 5 years, before making the move to manage and trade his own accounts.

Larry has been posting his market commentary, technical views, and stock and ETF ideas on Twitter since January 2013.

Larry has been named “One of the Top 50 Twitter accounts for investors to follow” by CBS Marketwatch and one of the “Most Helpful Traders on Twitter”, in a broad-based Twitter poll.

Larry has also been interviewed by the CME, a guest on a variety of financial podcasts, a guest contributor for CBS Marketwatch, and Stockcharts.com, and quoted in the book “Trend Following”.

🏷️ TAGS
#LarryTentarelli #BluechipDaily #bostonibdmeetup #tradingeducation

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