http://www.thestockbandit.net/2006/01/05/starting-over/ Trading blog with trading insights, discussion on swing trading, day trading, and trading psychology. Thu, 24 Jul 2008 14:18:38 +0000 http://wordpress.org/?v=2.0.9 http://www.thestockbandit.net/2006/01/05/starting-over/#comment-146 Mon, 24 Apr 2006 14:51:18 +0000 http://www.thestockbandit.net/2006/01/05/starting-over/#comment-146 [...] A day trading approach offers greater leverage (for designated day trading margin accounts - $25,000 minimum requirement) in the form of 4-to-1 buying power. Trading larger positions on a day trading basis with such leverage on a shorter timeframe can help offset the returns produced by holding smaller positions for multi-day moves. When I’m day trading, I will set my ‘R’ (% of my equity at risk for each trade) generally at 1%. This just happens to be the level which I’m comfortable with, and may vary from your own preference. I’ll adjust that percentage up or down slightly if I’m trading better or worse than normal, raising it to 1.5% if I am trading exceptionally well and am trading in sync with the market, or reducing it to .5% if I am in the midst of a drawdown. The idea is to have a good starting point and then tweak it slightly to maximize your results (or minimize damage). [...] […] A day trading approach offers greater leverage (for designated day trading margin accounts - $25,000 minimum requirement) in the form of 4-to-1 buying power. Trading larger positions on a day trading basis with such leverage on a shorter timeframe can help offset the returns produced by holding smaller positions for multi-day moves. When I’m day trading, I will set my ‘R’ (% of my equity at risk for each trade) generally at 1%. This just happens to be the level which I’m comfortable with, and may vary from your own preference. I’ll adjust that percentage up or down slightly if I’m trading better or worse than normal, raising it to 1.5% if I am trading exceptionally well and am trading in sync with the market, or reducing it to .5% if I am in the midst of a drawdown. The idea is to have a good starting point and then tweak it slightly to maximize your results (or minimize damage). […]

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