best strategy for to grow a small cash account

Discussion in 'Strategy Building' started by mute9003, Oct 8, 2020.

  1. mute9003


    i have started trading with about 300 bucks last july, slowly adding cash to the account
    at one point i was up about 1900 bucks but after recent nokia stock fail im back to 700 or so gains

    i tried buying smaller number of multiple stocks but it was a massive headache to keep track of 10 or 20 stocks like my friend suggested
    so eventually i downsized lower and lower and now i basically watch one or two stocks and buy as many shares as i can with cash non margin account.
    when it works it works great but when it fails it fails great as well and kicks be right back where i started.
    it made more sense to buy dollar stonks and go all in when i had under 1000 cash account and i thought that if i slowly moved up to more expensive stocks it would be better. but it doesnt seem that last 8 months i seem to have lost my beginers lucks and my stock picking success kinda went down to stall, not loss but no gain either.

    what is a good strategy to use when starting with only few 1000 bucks(right now im at 3500

    should i split it in 2-3 stocks or go back to dollar stocks until i have much more money to invest into better companies?
    murray t turtle and Nobert like this.
  2. Invest and papertrade.
    murray t turtle and Nobert like this.
  3. Nobert


    Go to peper trade sims, test different approaches and come back 3 years later.

    As if one wants to become a surgeon and would be surprised, that noone allows him to proceed with hear transplant surgery, after 3 months of learning.

    If not, then it's nothing but asking for freebies.

    Time will test you patience and dedication, yet,
    - kudos for polite manner.

    Good luck M.
  4. Options.
    Windlesham1 likes this.
  5. smallfil


    Learn to trade properly and I would start with proper risk management and position size. Risk no more than 2%. That would be $70 per trade. Buy no more than 8 stocks. Pick stocks that are trending up strongly. Put a stop loss on the lower of the last 2 days. This will give you enough action while, you learn while, protecting your capital. So, if it is a $10 stock, you can only buy 7 shares. Ride the trend as the stock continues to rise. Trend following is what it is. "Oh, do not short any stock as your risk to the upside is unlimited." Do not learn the hard way, that you have lost all your monies in one fell swoop. Stick to long positions for now.
    Last edited: Oct 8, 2020
    Poljot, terzioglu and murray t turtle like this.
  6. Dazz


    there is a trade room - Trading Mission - that trades live micro ES, NQ, YM and GC. So it is $0.50 per contract for YM and NQ, $1.00 for GC. Could start at that room - I am in room everyday and he hosts a nice profit!
    RicRams and SimpleMeLike like this.
  7. %%
    Good.More than one right answer.
    Mr.mute999, sounds like you are a young man , so can afford to take single stock risk...………………………………………………………………...............Might as well look @ plenty of ETFs, closed a profit on IBUY/semi liquid etf.[Personal; no way would I want to keep up with 20 single stocks; may want to build a library and or use library cards]:caution::caution::caution::caution::caution::caution::caution:
  8. deaddog


    Make sure you are not paying any commission.

    Swing trade.

    Have a plan for each trade and stick to it.

    Read O'Neil's "How to make money in stocks"
    murray t turtle likes this.
  9. %%
    Good. And if I could do it all over again; I would buy more QQQ, some SPY+ skip single stocks--even though there are some huge% gainers.
    William O Neill said ''I dont know why people buy ETFs/I can make more money on single stocks'' WELL I know why, I like ETFS/lose less, so may make more $$.
    Mr O' Neill was unusually good, NYSE seat, fund manager, IBD newspaper founder...…......……………………………………...………………………………...……………………..
  10. deaddog


    Why is that? If you theoretically can make more money with singe stocks, why would you trade an ETF where the losers drag the performance down.
    #10     Oct 8, 2020
    murray t turtle likes this.