How Many Shares Should You Buy? 4 Tips for Position Size

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Being aggressive with sizing can help you grow a small account and get over the PDT. But you don’t want to be too aggressive. How many shares should you buy per trade? Tune in to learn Bohen’s 4 tips for managing your position size.



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First tip: Don’t use more than 50% of your account on any play … But you could use up to 50% of your account on a trade.

It’s aggressive. But if the trade works out, it can help build your account quickly. If the trade doesn’t work out, you still have a buffer.

This is important: only risk what you can afford to lose. You have to be comfortable with the risk. Always remember that the trade could tank and you could lose.

And if you have a margin account, be sure to tune in for Tim’s tip.

The other thing to note is if you use more than 50% of your account for a trade, you might miss other opportunities. Or you may want to exit a good trade to try a different trade. But remember, let your winners run!

Don’t forget to do the math. Be sure to recognize you’ll need to size accordingly on lower-priced shares.

Pay attention to a stock’s volatility. If it’s got crazy range, you may not want to size aggressively in case you get stopped out.

Take into consideration the brokerage and commission fees. Some fees are per share! You may think you’re doing great … but at the end of the month those fees add up.


#StockMarket #Trading #Stocks
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*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.

You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
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How much of your account do you use? Let us know!

Stockstotrade
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I use like 1/20 of my account to get the hang of trading and finding consistency first. Plan is to up my size as I get better

LetheMusicFlow
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1200 of which I can access 800 somehow, at the moment learning exponentially. Lost too much already knowing nothing. I need a 180 on that. Am in the Challenge and have STT, which is already a life changer, but I need to go further.

jettbaker
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$300 to $500 total cash account depending on if I am trying any swing trades. I usually try to keep any position under $100. The biggest problem with a small cash account is running out of settled cash in the AM, only to find better trades in the afternoon on my watch list. The small overall settled cash pool makes me take on more risk as well such as a little side trade with the remaining daily cash allocation ($30 or less remainder from main trade of the day). The stock is usually a sc-AMEX style NASDAQ penny stock with support and resistance lines so far apart that my stops can quickly wipe out a large percentage of the position in an instant or an hour. I worry if I scale up that I will have the same problems but with larger chunks of money.

pq
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Hello Tim, I am a completely blind trader. I have been trading for around 6 months now, so I am very new to the game. I was wondering if you have ever met or known a successful blind trader. The issue that I'm seeming to have is not being able to read the charts. I did try to use the stocks to trade app, but did not have any success. Any help would be appreciated, as I'm just trying to make money like everyone else. Thank you.

superblindeye
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Cns you make a video about the daily range and which stocks to trade and not based on that?

TradeWithZac
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Wow. I need to size up a bit apparently. Trading about 3-4% — don’t want to blow up acct.

ConnieHammond
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I missed BTX and a bunch changing to Interactive Brokers. Now sick. Looking forward to making use of it. 👍

Danielpakuts
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Awesome video. I have a small account and this video was very helpful. Thanks, Cat Daddy!

CJKanash
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I have been trading for just about a year, have a $1000 account. I have just recently gone back to creating position size based off of risk of 1% of my capital. So, $10 risk. I take my 10/ (entry point - risk level) = position size. I don't make much when my play works out. But after this last year of losing 1/2 of my account while learning I just need a safe way to stay in the game. This method definitely takes patience. I just need to understand that right now it's about process not profit.

anjimushik
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Great Video! I have been trading for about 4 months now and I down 5%. I started with only a $100 and my average risk is 2%. I normally only use about 20% of my account at a time.

dcoke
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Great video Tim! However, I would have expected you to mention the Stop Loss % when sizing. Started to day trade short time ago, so still dont trade aggressive and haven't got bit wins, but just to mention I dont have a small account (neither big enough to be above PDT), but still size considering a 0, 5% max loss per trade. I think this is important at the beginning, while acquiring knowledge and need to stay in the game.

agustinpetit
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Do you recommend sizing in 25% first and if the trade works size in the other 25%?

ocfofo
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Does Stocks to Trade not have position size programmed hot keys? I think this should be a must on a trading platform. Every trade should be the same $ amount risk. Not a buying power percent of your account. Using margin is just fine if your $ risk loss limit is still respected on your stop.

panemanager
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I've been more conservative using max 25% of my account, my account is less than 5k

Seth_T_
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Great educational video and thanks for sharing this with me. I will start using half. I have gone all in.. to try an make a bigger profit, but it turns into a baggage problem.

maybelater