Where should I draw the line to quit my investing style?

Answers:1   |   LastUpdateAt:2012-10-09 23:32:02  

alexis joan
Asked at 2012-07-25 18:04:02
I have been playing with the stock market for about four months now and have seen both good days and bad days, way more bad though. I started off losing about 15% of all my money and then gaining back to about 6% which was amazing. However after going too deep into the no fly zone I've been shot down and have now lost 30% of my original starting amount.

I am a day trader and can say that 50% of my wins and 50% of my losses are derived from it however due to my low capital I can only day trade three times a week. Plus the time zone here in Hawaii sucks and I prefer swing trading until I can reach that capital requirement (25k).

I know how've I've lost my money. The market, the cruelest teacher of all is teaching me a lot. By making a 25% gain in a matter of a month I know I can make this happen, but I am getting close to the limit of losing the money I can afford to lose. What percent do I draw the line? How much have successful investors lost before?
Answer1ShaninAnswered at 2012-10-09 23:30:57
Has more bets. MedlinePlus MedlinePlus Imagine if you can bet on a draw, you win double your bet performance of your bet when you win and you lose your bet when you lose. This is an opportunity to make money, you will earn $ 1.50 for every $ 1 you lose. If you risk nothing by betting nothing, you gain nothing but lose anything either. The higher the risk, the more you earn. However, if you bet all you have, then you will lose everything with the first defeat. When does this money machine into a money loser? At what point is the highest profit? With the aforementioned coin tosses, any bet more than 50% will result in the loss of your portfolio, betting 50% break even, and betting on 25% of its portfolio is the optimal gain. If I could bet two coins simultaneously launched the optimal bet then would be 21% in each well with diversification may have more of their portfolio invested. MedlinePlus MedlinePlus Even good investments can be ruined over gambling. MedlinePlus MedlinePlus Day trading is often very thin margins, so the size of trade have to be very, very small compared to its capital. Even 1% of your capital may be too in many cases. It is often said to keep the sizes small trade in day trading, that's why. You need a very high capital before day trading can be profitable and it's really too much work for that. Really if your capitilization not something like 2.5 million, you're probably just blowing finally in day trading, regardless of how good you are. That does not mean that there will be periods when you will do well, of course, have good days and bad days, but without the high capitilization, volatility gradually eliminate their profits.
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