Thursday, May 31, 2007

Welcome to my not real-time LIVE trading room

Before I start writing about the trading room, I would like to remind everyone that you should not buy/sell any stocks mentioined here without due diligence. This is for educational purposes only.

For the trading room I will set aside $10,000 as my initial stake which should be good enough to trade properly and which is reasonable amount to start with if you are to trade/invest. $5,000 could still be okay but there will be no room for error. If you don't have atleast $5k for trading, that what are you doing browsing the internet. You should be out there flipping burgers, cutting lawns and doing whatever to save up and someday maybe you can start trading too.

Because the starting amount is not big enough to take on high priced stocks, I will limit my focus to stocks within the $10-$50 price range with atleast $.75 daily price range average.

Starting Capital = $10,000
Buying Power = $20,000 (with margin)

2 comments:

Anonymous said...

Hi MC,

This is a great real money demo for people like me who can only afford to deploy 10K. I'd like to ask you some questions if I may.
1. How many stock positions would you hold given this capital? 2. How are you going to divide your capital among your position? 3. Are you also going to trade shorts?
These queries might be too basic for you or to some of your readers but it will surely help those who are just beginning or other traders that have been struggling with their position sizing. Thank you.

Leo

mc said...

With this capital, I would look to trade 1 stock at a time and to use 1/2 of the capital initially and then buy as the price moves on the direction which proves profitable. This way, you risk the smalles amount when you are wrong and at putting to work the max amount when you already have proven that the position is correct.