Small Accounts 5-10 thousand

A

ang_99

I find that the only way to turn a small account into a healthy
account say, 25,000, is by trading large gaps or buying or selling into momentum. In the past 5 months I'm up over 200% BUT after commisions, cut that in half. Basic strategy is:

All Nasdaq stocks. Stock gaps up 15-30%, if there is heavy volume sell or buy into it. If trade goes against you, get out with a max 2% loss. If trade goes in your favor, hang in there for the ride.

Anybody else trade this way? Anybody have any better ideas for trading small accounts?
 
Quote from ang_99:

Anybody else trade this way? Anybody have any better ideas for trading small accounts?
More...
You could trade upto 5 ES intraday with a $10K acct at IB.

-Fast
 
Quote from ang_99:

I find that the only way to turn a small account into a healthy
account say, 25,000, is by trading large gaps or buying or selling into momentum. In the past 5 months I'm up over 200% BUT after commisions, cut that in half. Basic strategy is:

All Nasdaq stocks. Stock gaps up 15-30%, if there is heavy volume sell or buy into it. If trade goes against you, get out with a max 2% loss. If trade goes in your favor, hang in there for the ride.

Anybody else trade this way? Anybody have any better ideas for trading small accounts?
More...

You make it sound so simple that anyone can do it.

The strategy makes sense but a max 2% loss with a Naz stock? Even with a huge sell offer, the stock can easily rip up anyway.

I'm not saying you are full of it or anything, but the way you described you strategy sounds too easy and too good to be true.
 
I didn't mean to make it sound simple, and its not easy but trust me I did it. The basic point being I'm after extreme moves and the only way to get that trading equity is to go after stocks that are "in play." Usually found in stocks trading 1-10 bucks. You drawdown can be big with 4-8 losers in row not out of the question but one nice gain can easily make up for that.
 
I would buy pullbacks on strongly uptrending stocks and slowly grow your account $100-$200 at a time. At your account size, big losses can wipe out weeks or months of gains at a time, so I would stay away from homerun hitting techniques.
 
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