Been sizing wrong on the cheap tickers

Spent years telling people to size by risk per trade and never once adjusted for the fact that the spread is a fixed cost per share, not a percentage. That guide on why the spread has a floor made it click on the train this morning - on a $8 stock that penny is a much bigger bite than on a $300 one, and my sub-$10 positions have been quietly bleeding more than I assumed. Redoing my sheet tonight.
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HalfKelly
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PremarketPete· 25d ago
yep. my checklist now: - spread as % of entry before size - limit only under $15 - skip if it's wider than my first target saves me from myself most mornings
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GapHunterMike· 24d ago
took me 3 blown accounts to learn that. cheap stocks arent cheap.
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