This video covers how to size your stock positions so you do not assume risk one one single trade. I also provide a spreadsheet that can be used to allocate the right number of stocks based on your risk profile.
This Study is adapted from a ThinkorSwim script called Sector Rotation Model. I use 7 sectors (XLK, XLY, XLI, XLC, XLF, XHB, XLE) as risk-on trades and 4 sectors (XLRE, XLP, XLV AND XLU) as risk-off
For day trading it's imperative you focus on strong stocks within strong sectors. There are 11 S&P Sectors namely, Technology, Healthcare, Consumer Discretionary, Communications, Financials, Industri