A trader enters with 10% of a position, adds 90% once the price confirms, then cuts everything if the stock re-enters the red zone that triggered the original idea. The thesis breaks, so you exit.
So that's how I manage risk on these setups. So what I like to do is I like to risk a reclaim of that red to green area. So if my first initial entry, you know, maybe I have a FOMO entry here, 10% of my size here, kind of cure my FOMO there, and I go in 100% of my size here. So what I will do is if it ends up reclaiming the red to green area, you know, I'll cut off that 90% add that I had. I added 90% of my size, I cut that off, and then the rest I'll cut off right here, same place. The problems that occur is that the entire thesis is based on stock going red and staying red. So the moment it reclaimed Red, my trade thesis is no longer valid and I get the hell out.
