My Google Trade Today

Here’s a look at how my new position sizing methodology helped me out on a trade in GOOG today. With my old position sizing, where I would buy a fixed dollar amount of stock I probably wouldn’t have even looked at GOOG because I would have had so few shares that I would have needed a huge point move to make any ‘real’ money on it. But now that I’m doing the percent risk thing I was able to find a low risk entry point that allowed me to take a good sized (based on dollars at work) position in GOOG. In this case my stop was 75 cents away from entry. I bought 125 shares so I was only risking $93.75 even though I had an initial position worth $38,286. So a trade that I wouldn’t have even taken before turned out to be my biggest winner (on a $ basis, not %) for the day.

Glad I got out of that puppy before those YHOO numbers hit!