hi, my name is pan. i am new to the forum and welcome any help.

ive seen a stock i want to trade. its $10 a share and i have $10,000 of my fathers hard earned income to invest in this share [im only kidding, its my mothers]. Risking only 2% of my capital, i buy 1000 shares and put my initial stop at $9.80. therefore risking only 2%[$200] of my $10,000.

however, this is wrong isnt it?

if i look at ATR and set an initial stop at 2ATR below the entry [long]. from

'What period should i be looking for a value of the ATR?'

'Is there a simple formula that can help me work out where my initial stop would be and not risk more than 2% of my capital?'

'following that, is there another simple formula that can help me with trailing stop losses to protect my profits?'

kind people of the forum, fellow traders. i ask you to make sense of this for me.

kind regards pan