This board will be to assist small time traders. Generally new traders with small accounts. Although it could be helpful to all traders with all types of accounts. People can post stock ideas, but I will comment on them on whether they fit the "Small Time Trading" criteria. Please try to keep that criteria in mind when posting. However, posting about previous trades (good or bad) and what you learned from it would be even better. PLEASE KEEP IT CIVIL. No need for fighting on here. Thanks.
I started this board, because I have seen a lot of sad stories out there from new traders and people with smaller accounts. My belief and it has proven out for me over the last year or so, is that small time traders have to trade a little differently than those with big accounts.
My plan is to answer any questions that traders have and to post tips and strategies that will help small time traders. Accounts with $1,000 to $15,000 in them.
As for me, I have been investing/trading for over 20 years. I have a degree in Finance, and was a registered investment advisor for a time. Over the last year or so I have had to trade with a small account, but have been very very successful. So why is my account not large now? Because I have to keep taking money out of it to pay debts. These debts were incurred during the financial crisis in 2008.
Some quick tips:
- When you have a small account, the best place you can make the most money is on the OTC market.
- Make sure you have a margin account. You do not need to trade on margin to have one. It just makes it easier on you to trade.
- Do not trade on emotion
- Do not buy your entire position at one time.
- Do not sell your entire position at once (depending on the situation).
- Do not buy stocks that are in the triple zeroes
- Use IHUB message boards for your stocks as a resource
- Pay attention to is on those boards. Good traders that you know or paid promotors.
- Only buy stocks that can be found on stockcharts.com
- Take profits earlier than most are saying you should
- Cut losses quickly and move on
- Know what you own! And stick to your plan unless something changes with what you "know".
- Keep aware of possible dilution by the company or it’s lenders. You do not want to be in a stock where that is excessive.
I will add more as I come up with them. Or others come up with ones I like.
Number 3 and 4 really help you abide by number 2. Unfortunately, it is rare that you will get the best buy or sell price, by not buying or selling all at once, you can take advantage of this. One of the exceptions to selling in chunks is if you can tell a stock is really going to dive, and you have to get out of there quick.
I will also be putting tips here on how to pick the right stock. Some of that is technical, and harder to verbalize, but I will try. I will also give examples of these stocks when I post.
Some key tips:
- Buy stocks with relatively low floats (100 million shares or less)
- Do not buy stocks with RSI’s at 70 or above
- Do buy stocks with RSI’s at 30 or below (however, do not use that as your only factor)
- Do not pick a stock that has only traded in a narrow range
- Pay attention to see if the company is diluting, or has lenders that are diluting. You don’t want to be part of that ( I listed this twice
Remember all of my advice here is geared towards small accounts, however, everyone can benefit.
The smaller the account the more concentration you will have to have. For example, if you only have $2,000 in your account, you probably can only own one stock at a time to be most successful. Yes, there is more risk that way, but the goal here is to make a lot with a little.
Lastly, my disclaimer. I AM NOT RESPONSIBLE FOR YOUR TRADES. If you lose money with anything I say, suggest, post, recommend, that is on you. If I own a position in any stock I write about I will tell you, and it will be in my profile.
With that….Good Luck!