% of net liq in brokerage account to be used in trading stocks or options

I

IBRex&me user

Elite traders, l want to ask for your opinons:
1. what % of an account should be used for trading options or options on futures like /es /nq or /mes /mnq and how do you measure that % ? (l think its the % of bpr or maintenance margin required divided by net liq) . to make an 'acceptable' amount I realise that smaller accounts will have to use a far larger % than big accounts. is there a link for video or info on this
2. what is best way to grow a tiny 7k account?

thanks
 
IBRex&me user said:
Elite traders, l want to ask for your opinons:
1. what % of an account should be used for trading options or options on futures like /es /nq or /mes /mnq and how do you measure that % ? (l think its the % of bpr or maintenance margin required divided by net liq) . to make an 'acceptable' amount I realise that smaller accounts will have to use a far larger % than big accounts. is there a link for video or info on this
2. what is best way to grow a tiny 7k account?

thanks
More...

the answer is based on a function of how much you are willing to lose if you are wrong and how many times you will be wrong vs right.
 
I looked...(couldn't ask the right questions on Google), what percentage of margin accounts (say under $50,000.), are profitable after one years of active trading??

I'm sure there are studies or empirical data...

Just curious...
 
Cabin1111 said:
I looked...(couldn't ask the right questions on Google), what percentage of margin accounts (say under $50,000.), are profitable after one years of active trading??

I'm sure there are studies or empirical data...

Just curious...
More...
I'd guess about 3% (if that). And those are probably because of luck. Any schmuck with 2k can open a margin account.
 
The State securities regulators collect the data and you can visit them. The data amazes everyone, but my quoting it just brings out idiot comments. The data was more skewed with time held as opposed to account size. Go visit your State regulators.
 
Cabin1111 said:
I looked...(couldn't ask the right questions on Google), what percentage of margin accounts (say under $50,000.), are profitable after one years of active trading??

I'm sure there are studies or empirical data...

Just curious...
More...

if op trades only futures, it wouldn’t make a difference, other than ib has a much higher margin requirement. futures margin is not the same as equities margin, which effectively is a loan.
 
IBRex&me user said:
Elite traders, l want to ask for your opinons:
1. what % of an account should be used for trading options or options on futures like /es /nq or /mes /mnq and how do you measure that % ? (l think its the % of bpr or maintenance margin required divided by net liq) . to make an 'acceptable' amount I realise that smaller accounts will have to use a far larger % than big accounts. is there a link for video or info on this
2. what is best way to grow a tiny 7k account?

thanks
More...

start with basic stop loss 2% rule.
 
ajacobson said:
The State securities regulators collect the data and you can visit them. The data amazes everyone, but my quoting it just brings out idiot comments. The data was more skewed with time held as opposed to account size. Go visit your State regulators.
More...

Are you referring to data that shows the percentage of accounts that are profitable?

I would love to see that kind of data, but i couldn't find anything on the website of the Michigan securities regulatory agency. I feel like I'm looking for a needle in a haystack. I didn't even see any links to any kind of data like that.

Can you provide some links, or point me in the right direction?

It can be any state; doesn't have to be Michigan.
 
BMK said:
Are you referring to data that shows the percentage of accounts that are profitable?

I would love to see that kind of data, but i couldn't find anything on the website of the Michigan securities regulatory agency. I feel like I'm looking for a needle in a haystack. I didn't even see any links to any kind of data like that.

Can you provide some links, or point me in the right direction?

It can be any state; doesn't have to be Michigan.
More...

Links to peer-reviewed papers...
 
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