Here’s a quick rundown on how to enter and exit a trade.

1. Decide how much money you’re comfortable losing per trade. Might be $5.00. Might be $5000.00. It’s different for everyone.
2. Look at the chart. Is the general direction of the stock going up? If yes, prepare to buy.
3. Pick a target you think the price can get to.
4. Look at the chart and choose a point below where you’re about to enter where, if the price falls to that level, you’re going to throw in the towel and close your position. This will be your “stop price”.
5. Subtract your stop price from your entry price. Divide the dollar amount you’re willing to lose by the amount you just calculated (entry - stop) and this is the number of shares you’ll buy. Now you have a plan and no matter what happens your trade is controlled and so should be your emotions.

**buy at your own risk. I am not advising anyone to make any trades. I’m only telling you how I personally calculate risk on my trades to remain as emotionless as possible.