Cool stuff bro. Let's see your audited brokerage statements then.Jefferson said:10% of the account is a small trade? Don't you mean 2 or 3%?
If you open an account of USD 500 (not 5000) and you risk 2% you can make 35 losing trades and still your account is not wiped out. Nobody has a losing streak of 35 trades. Nobody. Not if they use a proven system.
Do the maths, calculate it in a spreadsheet. The numbers don't lie. 500 dollars, risk 10 on each trade, with 35 losing trades your account is not wiped out.
People lose their account because they don't calculate their stop loss properly. If you risk 2% per trade you won't wipe out your account even if you make 35 false trades in a row.
the-dream said:So what would you invest $20k in, Rat?
chrisblackbeard said:Jefferson is right. 2-3% is the right way to learn.
Then again, I'm more ballsy and do more swing trades, rather than day trading.
5k is a good amount to start, and sticking to the 2-3% rule is the safe way to go. Cut the losers, and let the winners run.
With all of that, don't plan on really multiplying your account, as you will most likely lose money. Its learning
FraddyD said:Well, I would rather invest in forex. If we are talking in a broader sense, we cannot really make a comparison on which one is riskier. If we start talking about individual instruments within each market, then it starts making more sense. Both stocks and equities are comprised of ‘individual’ instruments that will exhibit distinctive volatile characteristics at times. In the case of currency markets, think of the Sterling ahead, during or after the Brexit shocker. That led to a major period of volatility, especially in GBP. Now we are seeing the opposite, with compressed volatility in forex, while stocks in the US and globally see huge spikes in price movements as reflected by the VIX index (or fear index), which trades at the highest level in months. There is a re-adjustment of US assets fleeing stocks into cash allocations as the investment in higher global bond yields become more appealing. Bottom line: You must be pragmatic and first define what type of investor or trader you want to be. Are you a short-term, swing or position trader? What type of exposure are you looking to have? Instruments to trade? There are many questions you must fill in the gaps with. Once you can find an answer to each one, you will be better positioned to make a judgment call in which one is riskier. If you find that forex can be an interesting venue to give it a go, I am happy to provide you with a list of Forex Brokers that provide an opportunity to open your own PAMM-account or choose one from the pool and invest into it [spam link]
Praetor Lupus said:...
3. Live off half of it while I spent the other half on advertising an online business or affiliate offers.
General Stalin said:
Australia Sucks said:Really? Bank shares? There are so many better shares to buy in Australia then the stodgy no growth (earnings per share are likely to go backwards over the next few years) banks!