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Two separate things. Start with the walkthrough to learn the screen you trade on; the topics explain the trading behind it.
Two separate things. Start with the walkthrough to learn the screen you trade on; the topics explain the trading behind it.
Candle Arena needs the height to show a chart and your trade at the same time. Landscape on a phone is not supported yet.
A stop is an order that sells automatically if price falls to a set price. This one sits at 37.54, just under the recent low of 37.62.
Buy 37.94 · Stop 37.54
Say you have $10,000. Before counting shares, pick the most you will lose if the stop is hit. Some traders use 1%, a rule of thumb. Here, that is $100.
1% of $10,000 = $100
From 37.94 down to 37.54 is 0.40. That is what each share loses if the stop is hit. The stop came from the chart, so this did too.
37.94 − 37.54 = 0.40 a share
Each share loses 0.40 at the stop. So $100 covers 250 shares, and no more. The same division works on 1-minute, daily or monthly charts.
$100 ÷ 0.40 = 250 shares
250 shares cost $9,485, which fits inside $10,000. If the stop is hit, they sell for $9,385. You are down $100, not $9,485.
250 × 37.94 = $9,485 · 250 × 37.54 = $9,385
All $10,000 buys 263 shares. At this stop they lose $105. If the stop sat 0.80 away, the same 263 would lose $210. Nobody chose either loss.
263 × 0.40 ≈ $105 · 263 × 0.80 ≈ $210
A stop 0.80 away makes $100 buy 125 shares. One 0.20 away asks for 500, costing $18,970. More than you have? Buy only what you can pay for.
$100 ÷ 0.80 = 125 · $100 ÷ 0.20 = 500
At 37.54 the stop becomes a sell order. In a fast drop, the sale can fill lower, so the loss tops $100. Fees, ignored here, add a little more.
Say you have $10,000 and will lose at most $50 if the stop is hit. You buy at 37.94, stop at 37.54. How many shares?