Risk

J

joaaquinn

Hi,

I am new and I plan to start trading. I will to day trade stock fom SP500 which have an average volumen of 500000 shares per day or more. I have a paper account on IB and after some months I plan t move to a real account.

I have a margin account. I plan to use up to 1:2 laverage. What are the risk of losing all money? I mean, not all money in an large amount of time, will take care of that and won t happen.

Could happen something in one day that make me loss all the money? Lets take and example that I have 1000 share, 50 per share. Could happen something that will decrease tha value of th share from 50 to 10 for example? Talking about probabilities. I think this is unlikely but let me know.

I will only day trade not hold any position longer than 1 hour. Put always stop loss.

Thanks
Joaquin
 
Good video, what a day for a lot of people.

Lets supposed that I was long with 1000 shares at 50 per share at that time. I watch price action bar by bar, never leave the computer while I am trading. Trade with a very tide stop loos. I never will let me loose more than 0.5 per share. My account could suffer some serious damages? Or could I close my position with limit loose.

Thanks very much, others opinions are welome.
Joaquin
 
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