Right now, I am trading in $1000 buckets. So for every stock, I am trading no more than $1000. Sometimes I close the $1000 trade and enter another $1000 trade on the same stock. But I am not going over $1000.
This is fine but it limits me from playing bounces like I should.
So moving forward my clear goals are:
1. Focus on education, not profits.
2. Limit your potential losses to as little as possible.
3. Don't have a single position that is more than 20% of your total account value.
4. Increase position sizes only after you show an improvement in monthly profits. So in month A, your profits were $200 and in month B, your profits were $500, then you can increase your position sizes. But you wouldn't increase the values unless you had consecutive monthly gains. In order words, if the first month is red (you lost money) and the next one is green, you would sit tight.
5. Increase your position size by one-half of the previous month. So if you start with $1000. The next month, you can only go as high as $1,500. Then, if you are still seeing monthly improvements, $2,250. By the fourth month, your position size should not be higher than $3375. Keep going until you get to 20% of your total account value. Stop there.
6. One stock at a time, one stock at a time, one ... stock... at ... a ... time.
7. Stick to your current stock screener & broker app. Using EquityFeed is paying off, so far.
Great plan and advice! I got affected emotionally a lot by continuous losses. Need to focus more on education and find consistency
@trung1234 Thanks, I am trying to do the same.
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