posted
1. with pennies I hear there is no guarentee that I will be able to get out. Is that true? I have thought about doing those big momentum plays but I know they can drop really fast. Could I potentially watch a stock drop 50 percent on me before my order to get out gets filled? Or if a stock goes up 100 percent is it likely that it wont get filled at the higher price? 2. Since I cant exit with a market order(my brokerage only allows limits on pennies) and the price can change faster than I can type my exit limit order, if I typed in a much lower price would they just fill my order with whatever the current bid is? In other words, would this be like a market order? Or could I do the reverse to enter a position like a market order if it was going up faster than I could type the price? Or would they skrew me and fill me at a worse price than they are actually asking. The big boards will always fill you at the best price, is the same true with the pennies? 3. Basically what my first two questions are asking is, even if I use carefull stop loss rules can I still loose my money on pennies by none of my orders being filled to exit at 8 or 10 percent? 4. If I get good at trading pennies, what kind of returns are likely? On the big boards I can only do 10 to 40 percent a month depending on the market after my losses are factored in. Could I be doing much better trading pennies? 5. Not that ill have to worry about this right now, but how much money is to much to trade pennies? My understanding is you cant put as much money into pennies in trading because it makes it harder to get your order filled and therefore hard to trade that way.
Posts: 205 | From: ca | Registered: Aug 2005
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posted
I really don't have time to address everything you asked in depth... but I can say that if only 30 to 40% of your trades are winners and if and only IF you limit your losses you will come out ahead... Limit Losses = stop losses ... dump your losers and ride your winners... as for how much you can expect to make.. that is impossible to answer simply because everyone is a individual.. no two people are the same.. one can make more and one can make less... only experience will make you more.. learn from your mistakes and never make them again or try not to... also one thing that i never see on this board much is patience.. most "traders" on this forum are turning into gamblers.. they need to have "action" everyday instead of being patient and waiting for the right "bet" to come along.. much like professional gamblers in sports/horses/poker you don't need to trade everyday or hold a position everyday.. if no stocks are coming into your radar that have potential in your opinion then don't trade.. there is always another day... wait for that stock to come along that meet your criteria.. the really good sportsbettors or horse players don't bet every day... they wait for a opportunity to come along where they have a edge... same thing with poker players.. true great poker players will fold more starting hands then they will play... they are waiting for the right starting cards/hand.. same can be said of Trading...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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