Before the holiday vacation my firm raised my BP, and lowered my commissions based on my performance and etc... now my question is now that i have a substantial amount of BP, what are some things to stay away from, and what are some mistakes us "newbies" make when given a raise in buying power... bottom line im askig for some advice when i go in on monday... (plus have i really missed anything since ive been off (dec.23-jan.6)??? ive been watching cnbc and reading my daily publications and as of late i dont think i really have, outside of that day we had on the 2... well all in all i hope everyones holidays where pleasant and theyre year ends profitable... so lets all look forward to happy, and even greener new year...
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Buying Power Increase...
- Thread starter dgmodel
- Start date
now my question is now that i have a substantial amount of BP, what are some things to stay away from, and what are some mistakes us "newbies" make when given a raise in buying power...
seriously, if you have to ask.....
just think dude, what in the world could possibly be a mistake???? taking on way too big a position relative to your equity maybe???????
[sarcasm/on]you're the man!!![sarcasm/off]
listen, youd agree with me that michael jordan, babe ruth, montana, etc. where/are great players right??? and they knew what to do, put the ball in the hoop, hit it over the fence, get it to the endzone... however even they had coaches... and tips/help from others... because every bit helps, plus good advice from others that where/are in my position is better than going in blind and or learning from my own mistakes... (ive learned in trading that its cheaper to learn from other ppls mistakes than your own) in any event... ttyl...
listen, youd agree with me that michael jordan, babe ruth, montana, etc. where/are great players right??? and they knew what to do, put the ball in the hoop, hit it over the fence, get it to the endzone... however even they had coaches... and tips/help from others... because every bit helps, plus good advice from others that where/are in my position is better than going in blind and or learning from my own mistakes... (ive learned in trading that its cheaper to learn from other ppls mistakes than your own) in any event... ttyl...
Is this the same firm that you had been worried were going to close up and you thought you weren't going to be able to get your money out of? Or is it a new firm. What happened with that situation?
When I increase my position size, I try to prepare for a maximum draw-down at the new size. In other words, I don't want to increase my position size so much that a draw down would wipe out a large share of my realized profits. Even though the new size should eventually be profitable after the draw-down, too large of a draw down could put me out of business or wipe me out psychologically. In other words, I try to increase somewhat gradually. Good luck.
Quote from dgmodel:
Before the holiday vacation my firm raised my BP, and lowered my commissions based on my performance and etc... now my question is now that i have a substantial amount of BP, what are some things to stay away from, and what are some mistakes us "newbies" make when given a raise in buying power... bottom line im askig for some advice when i go in on monday... (plus have i really missed anything since ive been off (dec.23-jan.6)??? ive been watching cnbc and reading my daily publications and as of late i dont think i really have, outside of that day we had on the 2... well all in all i hope everyones holidays where pleasant and theyre year ends profitable... so lets all look forward to happy, and even greener new year...
Dont change your trading style thinking that now you have to since you now have more options. Stick with what works for you and dont think about the buying power or the p&l. Trade the stock and not the p&l.
Quote from hii a_ooiioo_a:
Is this the same firm that you had been worried were going to close up and you thought you weren't going to be able to get your money out of? Or is it a new firm. What happened with that situation?
yes and no... subsidary of the said firm.. however different entity... all in all im still leary, however im going forward focusing on trading and hopefully nothing will happen... in any event like any good businessman, i always have my ear open to new ideas, and my eyes open for greener pastuers...
Quote from Eldredge:
When I increase my position size, I try to prepare for a maximum draw-down at the new size. In other words, I don't want to increase my position size so much that a draw down would wipe out a large share of my realized profits. Even though the new size should eventually be profitable after the draw-down, too large of a draw down could put me out of business or wipe me out psychologically. In other words, I try to increase somewhat gradually. Good luck.
what stoploss would you use on a lets say a 1000 share position...