best strategy for small accounts?

thanks Babak. I agree that once the market stabilizes or reverses, these DCB's won't be as plentiful. However, only a fraction of these "death spirals" have been the result of accounting fears. There's always the good old failed FDA trial; the low volume stock that the masses have simply forgot about and that has drifted ever downward on no news; panic over false rumors on the boards... but this bear market certainly exacerbates all these negative scenarios.

But I am glad I found this site because I do want to learn more approaches, especally in regards to day trading and options trading.

Aaron
 
Originally posted by Janitor
Thanks everyone for the replies.

I have indeed been able to make those great returns for many months, but I only think I could manage it with a tiny account and huge risk tolerance. I have been risking 1/4 to 1/2 of my entire account on each position, and thankfully I've avoided getting burned too badly for a long while. When you're playing bounces on the NAVIs and RRRRs and GMGCs of the world (these days), there's always the risk of something going very wrong.

With a larger account (say $18,000), I would only relegate about 20% of that to playing these high risk dcb's and bottoms. And I only find about one good one a week anyway.

I will try to keep 1/4 in cash, and play the rest more conservatively. I do not expect to continue at 25%/month, or even close to that.

Thanks for the emini suggestion, and the direct access suuggestion. I'll be researching both of these!

Aaron
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There is a guy on these boards called Pretorian2 hands out in the chat room a lot. His style mirrors your a lot. Might want to get in contact with him.

Robert
 
if you are making that kind of percent, don't do anything except increase your capital... everything influences your trading.... your broker, your chart software, your chair, your tie. Dont change anything except your capital... if u can't do it with more capital... consider just doing it with 6k instead of 19k and gradually build it up.
 
<There is a guy on these boards called Pretorian2 hands out in the chat room a lot. His style mirrors your a lot. Might want to get in contact with him.

Robert>

Thanks Robert. I have learned a lot from your posts on CS over the years, and look forward to reading more of you here.

Thanks too, Lundy. I will definitely stick to what works for me and not try to make any drastic changes, just hopefully lessen some risk.

I am excited because I bought ESAN @ .22 going into earnings Friday, but mainly because of the bullish/breakout formation. Earnings were good and Tuesday will be fun!

Aaron
 
Originally posted by bungrider
The people who write trading books don't know how to trade. That's why they write books.
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Pretty general statement that reflects more on it's author than it's content. I'll have to check with these trader/authors -- Tony Oz, Marty Schwartz, Stan Weinstein, David Nassar, Linda Raschke....
 
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