I may be crazy for dip buying $MGT today with the goal of another run tomorrow because it does feel over-extended now. But so far the ticker seems to be holding its own and despite a pull back at the EOD it gained A/H. The position is a big one because I wanted to test trading with a larger amount of money. I understand that growing your account takes time and me jumping from the $1k positions I've been taking to a $10k is a bit extreme. But at some point I will be switching back to real money and there is a possibility that I may move some finances around to start back up with a larger account.
The benefits of having a larger account are huge, position sizing is bigger, commission slippage is less, no PDT rule, no Free Ride rule issues, etc.
Plus with trading a $10k position I can lower the % I'm aiming for which will drastically increase my odds and lower my risks.
With a $1k position I need to trade multiple times with goals of 10% to 20%+ because a gain of 3% or 4% is only $30 to $40, and when you subtract commissions of roughly $15,... growth is limited.
With a $10k position a 10% gain is $1k, even 3% and 4% gains (much easier to grab) will result in $300 and $400 wins... making the number of trades needed to supplement income and live off trading while growing my account, achievable and realistic.
I'm ranting...
I also placed a small position of 1000 shares on $CBYL for a swing, looking to sell into momentum tomorrow. It broke out of a multi-month level and cracked the $1 level. The possibility of it running to $1.20 or $1.50 is there.
Plus with trading a $10k position I can lower the % I'm aiming for which will drastically increase my odds and lower my risks.
With a $1k position I need to trade multiple times with goals of 10% to 20%+ because a gain of 3% or 4% is only $30 to $40, and when you subtract commissions of roughly $15,... growth is limited.
With a $10k position a 10% gain is $1k, even 3% and 4% gains (much easier to grab) will result in $300 and $400 wins... making the number of trades needed to supplement income and live off trading while growing my account, achievable and realistic.
I'm ranting...
I also placed a small position of 1000 shares on $CBYL for a swing, looking to sell into momentum tomorrow. It broke out of a multi-month level and cracked the $1 level. The possibility of it running to $1.20 or $1.50 is there.
No comments:
Post a Comment