So if I’m going to start getting active in the markets again, I better dust off my old trading plan and adjust it.
I do well in longer timeframes, so I can take more risk and ride out short term bumps.
Generally speaking, I’ll use my Scottrade Momentum scans to find trading candidates and keep my costs low.
Position sizing is risk based, bet no more than 1% of portfolio worth in each trade. Limit trades to a max of 3 per account. Shares of stock are adjusted accordingly to price per share and max risk per trade.
Note: I don’t need to trade to live, but I can trade to build my war chest. It’s that simple, less stress that way.