Your Risk Factor can be any percentage you choose. And keep in mind that our discipline is applied on a CLOSING BASIS ONLY. Intraday volatility is not applicable. ( Why? ) For this example, lets assume that you establish your Risk Factor at 10%. You can then purchase any security you choose in any quantity. We will monitor each position in your account on a daily basis. If your positions increase in value, no action is taken. If any position in your account closes at or below 10% of it's highest closing price under your ownership, we will automatically sell the stock for you. Here's a detailed example:

You purchase 100 shares of XYZ COMPANY at $10.00 per share. The value of your investment is $1,000.00. Your Risk Factor is 10%. You would be risking a $1.00 decrease in the share price - or $100.00 of your total investment. If XYZ happens to decrease in value and closes at any price above $9.00 per share, no action is taken in your account because the share price has not violated your Risk Factor. If XYZ ever closes closes at or below $9.00 per share, we will automatically sell that position for you on the next trading day at the best available price.

If a position in your account increases in value, no action is taken. But your Risk Factor trails the higher price of the stock in order to protect your gain. Now let's assume that XYZ increases in value. For this example, we will use a 10% increase.

XYZ's share price increases 10%, and closes at $11.00 per share. $11.00 per share is now the highest closing price of the stock under your ownership. Our system now uses $11.00 per share when testing for your Risk Factor.

You now own 100 shares of XYZ at $11.00 per share. The value of your investment is now $1,100.00. Your Risk Factor is still 10%. You are now risking a $1.10 decrease in the share price - or $110.00 of your total investment. At this point, if XYZ ever closes at or below $9.90 per share, we will sell that position for you on the next trading day at the best available price.

Note that no action is taken unless a position in your portfolio closes at or below your Risk Factor. And your Risk Factor will always trail the price of each of your investments in order to protect your profits.