StockFetcher Forums · General Discussion · Money management question:<< 1 2 3 4 5 ... 7 >>Post Follow-up
EWZuber
1,373 posts
msg #30225
Ignore EWZuber
12/8/2003 10:26:54 AM

mika
There is method to the madness. If you had 10 positions and one cratered overnight by ( -50% ) you would lose a max of 5% of your capitol. That seems to be an easily survivable loss.
I don't think the solution needs to be complicated to make sense.


TheRumpledOne
6,358 posts
msg #30226
Ignore TheRumpledOne
12/8/2003 11:17:23 AM

Mika... go to the website and look there... should clear things up... posting here loses the formatting.. that's why I included the link.




knowsenough
54 posts
msg #30227
Ignore knowsenough
12/8/2003 12:27:13 PM

Mika, FWIW.........
I follow a 1/5 total account value on any one trade when starting out w/very limited capital. Yes, that's a bit risky, but if you did the DD correctly you should be able to hit a winner in one of three trades to cover any small stop losses (stops should be used in early trading till experience fades there need).You then get to the 1/10th of total equity (std. max. trade amount) as you build enough equity that you can complete the same style of trades (stock price/amount) that you did when you were at 1/5th. As the account equity builds you maintain that 1/10th on any one trade, just increasing your shares per trade amount...thus raising your profit potential. This will keep you in the game. I also like buying a basket of picks (3 usually) at one time that look the most promising, and then discard what fails immediately. Two 5% losses will be easy to stomach with one 20%+ winner. JMHO


TheRumpledOne
6,358 posts
msg #30228
Ignore TheRumpledOne
12/8/2003 12:51:24 PM

Beginners should NOT be attempting to manage a basket of stocks... too much can happen too quickly.

Pick ONE stock. Learn how it trades. Trade it over and over.

Learn to read the overall market. When the market is peaking sell your shares. Wait for the market to drop. Then buy the same stock back, more shares and compound your money.

Pick a good trading stock like FNSR, SONS, EXTR, etc... and you can rake it in month after month after month.

Just use RSI(2) to show you the peaks and valleys. Works like a charm.

This is simple. Don't complicate it.

MAY ALL YOUR FILLS BE COMPLETE.




knowsenough
54 posts
msg #30229
Ignore knowsenough
12/8/2003 2:03:58 PM

Forums are all alike.....
Always some lurking "expert" ready to correct anything they deem inappropriate. Thought this was a money-management thread and not a channeling stock trading one. Probably why you replied so quickly though, as you have so much free time waiting for that "one" stock to provide a new entry. How many days/weeks has it been this time? Better hurry, I see FNSR is failing to perform this time on your "end-all" indicator......LOL


EWZuber
1,373 posts
msg #30231
Ignore EWZuber
12/8/2003 4:27:10 PM

risjr
KRY is has moved up about as expected so far. Hitting up against resistance at the trendline @ $2.93 & bouncing down.
What surprised me though is that the stock did not sell off when it became overbought on the hourly chart. Instead it is trying to form a base around $2.78. With Hourly chart Stochastics now oversold, looks like it will be ready to move higher tomorrow morning. JMHO


risjr
99 posts
msg #30232
Ignore risjr
12/8/2003 7:17:08 PM

EW

Daily stats still look good, probably good for another day

Ron


risjr
99 posts
msg #30233
Ignore risjr
12/8/2003 7:20:38 PM

Also

Daily MACD is increasing, and getting ready to cross as well. and 14,3 daily stoch look good too

Only apparent downside is the volume, about average, so it could be running out of gas.

Ron


TheRumpledOne
6,358 posts
msg #30234
Ignore TheRumpledOne
12/8/2003 7:57:43 PM

knowsenough 12/8/2003 2:03:58 PM

Forums are all alike.....
Always some lurking "expert" ready to correct anything they deem inappropriate. Thought this was a money-management thread and not a channeling stock trading one. Probably why you replied so quickly though, as you have so much free time waiting for that "one" stock to provide a new entry. How many days/weeks has it been this time? Better hurry, I see FNSR is failing to perform this time on your "end-all" indicator......LOL


LOL... FNSR gave up some good scalps today! 2% or more!


TheRumpledOne
6,358 posts
msg #30236
Ignore TheRumpledOne
12/8/2003 8:03:40 PM

knowsenough:

Did you know enough to buy SBAC today?

RSI(2) worked like a charm on that pick... the quick took over 10% in a day...lol

Yes, I am just a "One Trick Pony" but the trick just keeps on working over and over and over again...






StockFetcher Forums · General Discussion · Money management question:<< 1 2 3 4 5 ... 7 >>Post Follow-up

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