(pb) >>14863236
Look at it this way. If you set your stop 10% away from your buy price and risk $200. You need a 10% rise in price to get your risk money covered. If you set your stop 2% away from your buy and get a 10% rise in the stock you just made 5x what you risked. In this case 1k. And because stock trading is more chance than skill you need to be careful and not risk more than 1/3 of 1 percent of your trading cash on a trade. IE, 0.0033. IMHO. Some people have "conviction in a stock". I have none.
It's not like shooting pool (90% skill/10% luck)