fusionz- the reason for using over $5. stocks is the maginability. The targets to sell are in the 2% to 5% area, with most being in the 2.5%-3% range, based on information from the spreadsheets. With that amount as a goal, using a marginable stock gives an actual 5%-6% on cash used. See no reason to use a non-marginable stock that has the same risk but half the reward.
At the same time a risk/reward reasonable stop must be employed at all times, if even only a mental stop, to avoid taking large hits that can eat away profits. 4 straight successful trades in a week givng 2.5% each is great, until run into a 15% loser omn day 5. Set a reasonable stop to eliminate those type of hits. There is no way to avoid them, but in this manner there is a way to lessen the damage. By doing this, over a period of time, 1 mo, 2 mo, 3 mo etc, the original amount used can be +50%-100% & more.
