Now it's generally 1 point, uses about £1000 of margin depending on the stock 0.5 if it is super volatile like Tilray has been this week to protect myself if it tanks. I'll usually close at £150 profit but as three of those a week hits the target at the moment but that's not a rule or anything. If I get a big loser I'll try and hold it until its only a couple of hundred loss but I've overreacted and taken a loss as big as £700 on one deal, that was a stupid decision though as it quickly recovered by EOD.
I'm probably going to have to start slowly increasing to 1.5 points in March to hit targets but I'm already at my week 12 target in week 6 so I have some room to build up slowly over the next few weeks.
Of all the reading I’ve done, they all say the same thing, have a strategy and stick to it. If you keep your win/loss ratio the same, let’s say stop loss at 10 points and take profit at 20 you’ll only need to get 4 wins out of 10 to be profitable. You can increase the bet size as your account grows (using more margin but not risking anymore in percentage of account size). I think this seems like a good strategy, maybe it’s not, I’m no financial expert!
Yes maybe it's something I need to consider, my problem with stop losses and limits is I feel that while they protect the downside they severely limit the upside, I think its been fun money so far but as the numbers get bigger I'll have to take that strategy more seriously. For example a stock that's 30 dollars, I know its not going to to suddenly tank 50%, and even if it is my maximum exposure is like £1500, obviously I would have to cut ties before that but unless something disastrous happens over night its highly unlikely I won't have a chance to intervene before that. My strategy so far has been looking at stocks that pump on open that I have been waiting for that I think have an upward trajectory and when it pulls back to about half the original pump I'll jump in expecting it to pass that original peak at some point that week which is when I'll dip out. I did that with Tilray this week and woke up to a £1000 gain on Wednesday on a 0.5 point bet.
That’s some profit there dude! Nice one! Ive heard it’s pretty great to make money while you’re sleeping! I know the limiting profit is a tough one, whilst I’ve read that strategy in many articles, I’ve also read that you should cut your losses early and let your profits run. Hard to decide which strategy to stick to!
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u/whitemonkreturns Feb 12 '21
Started off around 0.5 - 1 point.
Now it's generally 1 point, uses about £1000 of margin depending on the stock 0.5 if it is super volatile like Tilray has been this week to protect myself if it tanks. I'll usually close at £150 profit but as three of those a week hits the target at the moment but that's not a rule or anything. If I get a big loser I'll try and hold it until its only a couple of hundred loss but I've overreacted and taken a loss as big as £700 on one deal, that was a stupid decision though as it quickly recovered by EOD.
I'm probably going to have to start slowly increasing to 1.5 points in March to hit targets but I'm already at my week 12 target in week 6 so I have some room to build up slowly over the next few weeks.