Am I Looking For Too Large Of A Profit?

[dukhunter99]

I was just wondering what everyone's goal is for buying and selling stocks. Is there a certain percentage or amount of money you look to make. I seen someone post yesterday that they made 5% before they sold which equaled $37.00 considering he bought 100 shares. I pay $7.00 per trade which obviously equals up to $14.00 coming out of each trade cycle. I don't have enough of a portfolio to buy a lot of these stocks and gain small amounts which equals a large total. I have to wait longer to make any noticeable profit which obviously increases my risk. I guess I'm asking how do you start out with a smaller amount of cash.:?:

[MrSer]

Get a margin account or trade options if your seeking for greater percent gainers, but this also has more risk.

[dukhunter99]

I guess I was looking at it backwards. I thought a margain account was for more experienced traders. I'm not saying I'm totally ignorant or anything but this opens up short selling doesn't it?

[MrSer]

Yes and some places give you up to 4x your money balance to trade, but most of them are 2x your money balance.

[mark_brantford]

It may allow short selling, but also may be a requirement by your broker to allow option purchases. It was for me.

I understand where you're coming from as I just started trading this year with a smaller amount, only think I regret is buying small amounts of stock. With comissions it's harder to make any money that way, of course. So I'm going to start selling some winners and reducing the number of stocks I hold.

[dukhunter99]

It may allow short selling, but also may be a requirement by your broker to allow option purchases. It was for me.

I understand where you're coming from as I just started trading this year with a smaller amount, only think I regret is buying small amounts of stock. With comissions it's harder to make any money that way, of course. So I'm going to start selling some winners and reducing the number of stocks I hold.

Exactly!!!, I'm wondering if this is just a bad time to get into trading with the market on a tumble. I know you have to spend money to make money but I just don't feel confident with any stock right now. I think I see stocks that will go well and then they take a hit out of nowhere and then I 'm playing catch up. I've heard that that's a bad game to play when it comes to trading.

[Jelly]

Exactly!!!, I'm wondering if this is just a bad time to get into trading with the market on a tumble. I know you have to spend money to make money but I just don't feel confident with any stock right now. I think I see stocks that will go well and then they take a hit out of nowhere and then I 'm playing catch up. I've heard that that's a bad game to play when it comes to trading.

Read "Reminiscences of a Stock Operator"

[mark_brantford]

Well, I bought some financials so don't feel too bad. Who knew it wasn't the bottom :P Not doing too badly overall I suppose, if you have the stomach to wait it out because I would classify myself as a value investor, but I do think eventually money will flow out of commodities and back into financials once things start to look a little brighter.

I've actually set up some test portfolios with high yielding dividend stocks and they're looking nice. I am not going for the home runs here; I'm actually looking for a 20% return annually to meet my goals for the future. Investing in a solid co. like FRO or PBT really reduces your risk because the dividends are 10%+. I may start looking at those types of stocks next, with some money saved for spec or option plays. Good luck!

[wallstreetsedge]

it really depends on a combination of a few things...

-capital
-commission
-risk tolerance

if were talking about very little capital but a low risk tolerance, id recommend swing trading...

when it comes to trading stocks.. i would say on average when its day trade vs swing trade, a day trade id be happy with less than 1% where in a swing trade id look more for 3-20%

also when it comes to options, when i day trade, i look for 2-20% where on a swing trade i look for 30-200%