Building a Trade Step by Step

Published on
October 17th, 2019
Duration
14 minutes

Building a Trade Step by Step

Technical Trader ·
Featuring Louis Llanes

Published on: October 17th, 2019 • Duration: 14 minutes

Louis Llanes, CFA, CMT, founder of Wealthnet Investments, walks through the simple steps he uses to identify, size and manage a potential trade. He focuses his lesson on one particular stock he is trading, $RTN, and provides his entry, target, stop-loss, and sizing criterion. Filmed on October 15, 2019 in Denver.

Comments

Transcript

  • MT
    Mike T.
    21 October 2019 @ 10:55
    Louis, do you have any mathmatical, statistical or probability based that this setup will work? If so I'd be most interested to see your supporting math.
    • LL
      Louis L.
      22 October 2019 @ 21:55
      Yes, I have statistical backup of relative volume, relative strength, and range breakouts. It requires divulging proprietary analysis which we use to manage assets. If you’d like access to additional insights feel free to contact my office to discuss further. Thank you.
  • FC
    FRED C.
    20 October 2019 @ 15:25
    great video ..........more of these ...........clear concise and very helpful.........to see how the pros approach things............
  • JA
    Justin A.
    18 October 2019 @ 16:33
    Hi Louis, Thank you for this very helpful video. I really like the prospect of being able to use this over longer holding periods as I am more of a swing trader/long term investor than I am a day trader. I do have a few follow up questions if you have the time to answer that would be great. My first question is do you compare every stock to the S&P500 for relative performance or do you use different (potentially more relevant) indexes/industry? More importantly I was trying to replicate your Target Weighting table and I am unsure what the calculations are to arrive at those target weights. Finally I like your concept of volatility sizing and have looked into tradestops.com but would like to be able to create a simple version as you have done here. To that point I want to confirm that using the square root of the days you plan on staying in the trade is what you used in your calculation? Finally I want to make sure I understand that when you are talking about position size you are talking about the position size compared to your total portfolio, or are you saying that you would take 2%-7% of the total position you want to have in the stock? Thanks in advance for the help.
    • LL
      Louis L.
      18 October 2019 @ 17:22
      Thank you for your question. The answers would be quite lengthy. Honestly there would be some secret sauce involved. You can set up a call with me at me website and we can discuss consulting if appropriate. Www.wealthnetinvest.com
    • JA
      Justin A.
      18 October 2019 @ 19:23
      Thanks Louis I will consider doing this. Our of curiosity are you familiar with tradestops.com and their volatility based stop approach?
    • LL
      Louis L.
      18 October 2019 @ 20:13
      Yes I’m familiar with them and their method.
  • WO
    William O.
    18 October 2019 @ 16:00
    Great video! Thank you for the clarity on the movement of a stock.
  • JR
    Josiah R.
    17 October 2019 @ 22:52
    Great job Louis, thanks for sharing your thought process.
    • LL
      Louis L.
      18 October 2019 @ 02:57
      Thank you. It is one setup that can be helpful. It’s by no means our entire process, but is a very effective and useful setup accessible to anyone.
  • PG
    Philippe G.
    17 October 2019 @ 18:24
    Excellent - love these lessons by Louis L. and Dave Floyd, being somewhat of a rookie when it comes to technical analysis.
  • DC
    Darren C.
    17 October 2019 @ 18:12
    I really like Louis Llanes quality presentations.
    • LL
      Louis L.
      18 October 2019 @ 02:58
      Thanks for your kind comments.
  • VH
    Victor H.
    17 October 2019 @ 11:04
    We need more videos like this.
  • TW
    Tom W.
    17 October 2019 @ 10:53
    Excellent episode! I like the methodical process used; also like the idea of using technicals to create a short list for further research that includes fundamental factors. The relative performance indicator looks interesting. Extrapolating price targets based on past price action is not a good idea, IMO.
  • AD
    AINUR D.
    17 October 2019 @ 06:45
    Great video!