Still keeping ton of cash on hand but i also dont like to trade with a lot of money. i find the returns of adding more cash to the port are neglible. It may seem like I got a lot of positions but if u see most of them are partial positions i have already taken profits on. then i move my stop to my buy price and let it ride for a bit.
This is very important in the scheme of yearly portfolio returns as you will never get rich taking all my picks and stopping out when i stop out….if u also dont stretch ur gains with riding ur winners.
often i see people sell all their stocks at the first spike for 5-10 cent gains… they are happy as they are taking income. but when they stop out they use the same stops that i use which might be 10-15 cents away. so ur winners are continuously smaller than ur losers. that every happened to you? im sure it has its very common wiht new traders.
ur reward to risk ratio should be a minium 2:1 but ideally u want 3:1 or better. what that means is ur target should be 3 units to 1 unit of risk (where ur stop is) so in a swingtrade if u have a 10 cent stop ur target should be 30 cents above. if u do this overtime and stick to it. YOU WILL ALWAYS MAKE MONEY IN ANY MARKET. reason is….. if u can hit even 1 trade out of 3….u break even!!!!!!!!!!!!!!!!! now imagine if u can increase ur skill slightly and hit 2 out 3 trades..then ur talking about making mega bucks.