There is no such thing as conservative trading if you trade penny stocks.
IMHO, you should paper trade/sim trade to practice your skills while saving more $$ so you can start with a much bigger capital base.
Best wishes and good luck.
Pretty new and seeking advice
- Thread starter juntjoo
- Start date
IMHO, you should paper trade/sim trade to practice your skills while saving more $$ so you can start with a much bigger capital base.
Best wishes and good luck.
I am glad to hear that, now you just need to allocate the percentage of time you are spending proportional to the percentage of your assets you are handling... I really mean it.
Wherever you look, you will find references to passive 60/40 portfolios. Looking at the historic performance, these portfolios suffer from deep drawdowns, which is not desirable: https://www.bertram.solutions/2018/12/08/a-closer-look-at-60-40-portfolios/
You can improve this significantly, by just adding some very simple rules on top, turning a passive portfolio into something actively managed. If done right, maximum drawdown can be reduced to about 10%, while the return is in the long term about on par with S&P. That doesn't sound like much, but it the piece of the puzzle that you can allocate most of your assets to. Once you have that in place, take some money and get more creative with it, take more risks, and hope that you can have outsized profits.
Cheers, Felix
Whatever you want to do, just do it. The market has many counter-intuitive tendencies that you'll run into, and you'll have to learn and update as you go. Just don't use 10k while you are still testing strategies, like I did. Demand at least one full month of profitability from yourself before using significant cash.
How about you spend $100 on running a youtube channel? You can treat it as a penny stock. In 6 months, you might find yourself a half-millionaire already ... (I am not joking)
You should realize that you will make mistakes and chances are good that starting out, you will make more than your fair share of mistakes. If you had only $100 instead, of $500, the chances of you blowing that up and losing it all is far, far greater than you think. $500, if you have discipline might make you last a bit longer and enable you to figure it all out! Even experienced traders make mistakes and it costs you monies each time and losses! And what happens if you cannot figure it out in a very short period of time? Let us get real. You will at most probably, get to place a couple of trades with $100. What happens when all your trades turn out losers? Do not tell me it cannot happen to you because it has happened to me and can happen to other traders where you lose trade after trade after trade. What if you have 5 straight losing trades?
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Could bet on a horse race, but horse sense is one of the many reasons horses dont bet on track meets
LOL.GOOD news + bad news. GM ,DAL, LEH,AMR , BAC were all penny stocks. All of them went bankrupt eXcept BAC it went to $2.50 area, now up 10X that, above 5o day moving average.
Trading /investing is much like kindergarten,1st grade, college/medical school, required before any can become a doctor.
Find a public or private library with good trading books , [WSJ]=Wall Street Journal +Investors Business Daily newspaper [IBD]
Wisdom is profitable to direct.And you can ignore about 80% of what WSJ notes LOLu ever of the saying from some of the hollywood cop movies "shoot first and ask question later?" for a beginner. as soon as you see some money from your trade...take it. then do analysis of your trade later to see what you did right or wrong and improve on your technique in the future.