I have been trading stocks using technical analysis, mechanical trading systems for EOD signals, and judgement. Trades last 2-10 days and I do intraday trading occasionally. I do not trade on margin and do not wish to. My problem: I do size, and when dealing with 30-60 dollar stocks I find myself frequently maxed out in one or two positions. Is there another trading vehicule besides equities that would be condusive to my style (no margin trading please) ? Also, options do not attract me due to the "time value" pricing. Comments?
What do you have against margin? If your system has a solid edge, why not maximize it within acceptable risk limitations? Futures are an obvious answer to your question because of the leverage they offer. But that's essentially margin also.
I think you're limited to stocks in the financial instrument world if you wish to avoid leverage or margin. Because you are seeking volatility and maximizing profitability, the other financial instruments that one can normally trade aren't appropriate. 1)T-Bills 2)Bonds 3)Options 4)Futures / Commodities 5)Currencies Possibilities outside the financial world that would offer good returns without margin could include (off the top of my head): 1)Real estate (if you don't take out a loan for it) 2)Collectibles 3)Fine Art
Thanks for the detailed reply. I have enough real estate. I do have some "art" however depending on the economy the "value" swings wildly. Waiting for an uptick in demand for artwork at the moment. There's something about hanging 5 and 10 thousand dollar bills on the walls that no longer appeals to me. Working on retiring at 52. 5 years to go