Hi everyone. I bought a very small position in DOYU for a long term hold in my Roth IRA. For these types of positions, I don’t use a stop loss, and manage risk by using a small size. I’ve bought a position that would lose me 1% of my total account value if the stock goes to 0. I plan to add up to 3% of my account because that’s what I’m willing to risk on this given trade.
DOYU daily chart below. I bought a 1/3 sized position at $5.54 today near market close.
I set my limit buy order (GTC) for M at $16.5. I’m going to buy this one because I feel very bearish, and the last 4-5 times I felt this way, the stock propelled higher within 2 days. This is the only stock where whenever I get a strong feeling that it will go one direction, the stock goes exactly in the opposite direction.
M daily chart below.