Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You start trading with an account worth $ 5 0 0 , 0 0 0 . You decide that the most you want to risk

You start trading with an account worth $500,000. You decide that the most you want to risk on any trade is 0.50% of the account value. You've been following a stock and believe the appropriate entry point is $40 per share with an 8% trailing stop. Based on this information, how many shares do you initially buy?
625
1,250
391
781

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions