Holding over night on leverage

Discussion in 'Professional Trading' started by fatrat, Nov 5, 2007.

  1. fatrat


    I've never gotten wacked more than 5% on an overnight hold, but my account has grown substantially and now I'm a little worried.

    When I only had $2000 in my account, it made sense to put everything into 1 stock and generally hope for the best. Now, I am nearing a six figure account and I get nervous on the overnight holds.

    Is the solution options, or diversification into many different positions? I'm terrified of being victimized by something that happened to CROX. I could easily have seen myself as having bought that company near its high, only to get wacked.
  2. lindq


    Yes, diversification.

    If you've been holding only a single position and have not yet gotten badly wacked, then you've been lucky, and your concern is justified.
  3. Any index ETF will give you instant diversification.