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In a trend-following strategy, you only buy stocks that are rising, and you sell them immediately if they begin to fall.
This I've learned from the hard way but now i know that I should follow this strategy more so than not.
number of shares to buy = (account size times the percentage risked on each trade) / (entry price - stop loss) = ($10,000 x 0.02) / (17.07 - 14.50) = 77.82 shares, which we will round up to 80 shares.
Risk on account for momentum trade
