Papertrading a portfolio of stocks

Discussion in 'Trading' started by Salzburg, Aug 4, 2003.

  1. How do you pick the stocks that make part of your portfolio, meaning which stocks do you follow on a regular basis?

    Victor,

    Hope you won't mind if I jump on you wagon here. I have similar questions, but I'm at an earlier stage of the game.

    I've developed a few trading ideas and would like to papertrade them. Would an experienced trader or two mind coming forward and suggesting an EOD equities portfolio I could try my hand at? To be as "realistic" :p as possible, let's assume a very small initial stake, a $15-20k account. Would I then just stick with that portfolio for six or eight months, or a year? Is there a portfolio I could "lift" from somewhere for learning purposes, where smarter guys than I have already picked a basket of stocks, for whatever reasons they get paid to have? Aren't the gurus and pundits always crowing about how well they've done with this portfolio or that?

    On a related issue, this is a trend-following approach, long and short, and I THINK I'll be right no more than about 40% of the time. If I'm following/trading a group of, say, 20?, 30?, 40? (you tell me) or more stocks, and the method could be wrong 6 times in a row across the entire portfolio, couldn't I take an awful shellacking - theoretically - before ever even hitting my first winner? That could be rough going psychologically, no? How do I handle that kind of risk? Is there some way of phasing my way in? OK, so I'll keep my initial risk on each trade very low: 1 or 2% of my stake on each trade. But other than that, what can I do? It's one hell of a scary prospect. I can't imagine successful traders haven't been over this terrain.