swing/position help/suggestions please

Discussion in 'Trading' started by mbs, Jul 11, 2002.

  1. mbs


    i am currently trading 300-500 shares swing/position...using stops so risk is 10% to 15% of total account on equities, 3% on options trades (buying options outright, no spreads).

    would very much appreciate suggestions to increase trade size/risk...or am i risking the "correct" amount at 10 to 15% and 3%ish?

  2. I would keep risk on options to 2% and risk on stocks to 10% max. If you have multiple positions at the same time then you need to make sure they aren't all dependent upon the same thing ( like all bullish on telecom stocks for example ).
  3. mbs


    thanks for your reply. i've never had more than 3 positions on at once...there have been times where i wished i could put more on but i get a bit jittery watching too many.

    in your reply you noted 2% risk on options...does this mean you may want to buy a one strike out of the money option position but settle for say a 15 delta because it's less expensive or do you buy the one strike otm, just in smaller size?