Hi Marty. I use TRAILING STOP LOSSES (5%) for every position I buy. However, most of the time I get stopped out. Based on the stock and its volatility, is there a way of calculating the normal stop loss percentage for each stock? Ie. I hear someone use the recent longest candle to figure out his percentage for his trailing stop loss %. Thanks for your great work and education 🙂

The average true range (ATR) will tell use how much we can expect a stock to move on a daily basis.  There are value stocks that typically trade in a smaller range  like a 4%-5% daily range. The growth stocks are usually more volatile and have a great ATR. in 2023, SuperMicro was a stock that was trading 15%-20% ATR and it made it challenging to hold.  Those are the stocks you need to allow a little more "wiggle room" or they will stop us out. Of course, we have seen an uptick in volatility recently and even the value stocks have a higher ATR.  With the indexes below the 200sma I would not give them too much "wiggle room" though as the declines become steep rathe quickly. We cannot afford more than a 5% loss as it is too difficult to make back the losses.

Regards,

Marty