How many shares or lots to buy based on live market traded volume?

#1
Hi friends
here is the perspctive.
The figures given are random and everybody must find what figure works for them as x %.

The point is to provoke thinking in this direction and be aware of such measure to safeguard trader risk by limiting position sizing.

Suppose you have enough money but like to know how many shares or contracts to buy,first thing you need to know is currrently traded average volume.
Then you can think of buying a x% (not more than)of that current average traded volume provided you see the volume is rising and an upvolume trend is present.

To start with suppose you like to trade multiple lots of a call option say 6200 CE
Look at the MA(V,50) sort of thing first.
say If this average volume is 223800,say 223 k
take a 0.2% of this as eligible safe volume to buy then
you get 440 i.e you can buy 440/50 =max 8 lots.
The idea is to buy when enough liquidity exists.
your trading chart must have this kind of info displayed automatically on it.


The other important parameter you better know is recent 20 bar high and recent 20bar low-can be seen as dashed lines. This gives clarity if you are trying to buy near a high or trying to sell near a low in opposite trends.

Happy trading
ford7k.
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Quote
Once the live trading begins and prices start rolling,traders forget discretion and begin cutting their own legs off by doing exactly worst actions. They loose all the common sense as well.Bad habits & psychology of the wrong kind push them to forget all the rules of their system