It's all about the numbers. If you have a small amount of cash and NEED large gains to meet your personal goals. Then the OTC is the way to go. But you can reduce the risk level by trading the big boards with less manipulation. Some times you can trade several times a week to get smaller gains to add up to your OTC goals.
You need to put the numbers on paper and see which you feel is attainable, with your level of previous success.
Lets say you have $3,000 cash and you want $1,800 a month, but need $900.
At the OTC you have been trading 1 out of 3 trades successfully. And you look for 60% gain stock chart patterns. You acceptable loss is 1/3 your gain. Because you trade 3 a month.
Thats works out to 40% of $3,000 lost, (60% - 1/3 = 20% x 2 losses =40%) each month and you would need a 100% double to reach goal. (-40% + 100% = 60% of $3,000 or $1,800 goal) And you would need a 70% winner to reach need of $900. (-40% + 70% = 30% x $3,000 = $900)
This is just basic math. At 1 out of 3 trades closed you must make 100% a month to reach $1,800 goal and 70% to reach $900 need. With an acceptable loss of 1/3 the gain played or 60% chart targets.
But it's a start on how to create a business plan. Say you have $3,000 and need an extra $150 a week to make ends meet. But you play 3 stocks a week and win at 1. How large a gain percentage will you need to play to make $150 a week.
Make a plan using your personal numbers and if you have the choice of getting those gains at the big boards, instead of the OTC. GO BIG. Kiss the wild west good by.
AI
