I have a question, but here is the background. I have a VERY small trading account as a trader for a Prop firm. It is an account with $16,000 in buying power and a 40 share max with a $25 loss limit (I'm in my firm's 18 month trading program and started with a $2,000 account and account grows as your skills improve).
I tend to like trading High beta stocks with huge ranges, spreads. Stocks like AAPL, AMZN, GOOG, NFLX, etc. My default tier size is 5 shares. I tend to go into a trade with somewhere between 5 and 10 shares to open my position. If I apply good risk management, I stop out of positions between $.30 and $1.00 per share out of the money, depending on the stock being traded. As I'm Read more [...]
I have a question, but here is the background. I have a VERY small trading account as a trader for a Prop firm. It is an account with $16,000 in buying power and a 40 share max with a $25 loss limit (I'm in my firm's 18 month trading program and started with a $2,000 account and account grows as your skills improve).
I tend to like trading High beta stocks with huge ranges, spreads. Stocks like AAPL, AMZN, GOOG, NFLX, etc. My default tier size is 5 shares. I tend to go into a trade with somewhere between 5 and 10 shares to open my position. If I apply good risk management, I stop out of positions between $.30 and $1.00 per share out of the money, depending on the stock being traded. As I'm Read more [...]