All-in Trading isn't Normal?

Symothy Tykes

Newbie
3 0
For the past month I've been learning how to day trade penny stocks specifically, reading and watching videos everyday. I messed around with a hundred bucks and lost 98% of it on HMNY.

Then I learned about StockTwits and stumbled upon BILI from people talking about it in the facebook section and that's when I felt it was time to start risking thousands. I made $100 that day on a $4,000 margin account which looking back now was pretty scary.

It wasn't until Friday morning that I finally learned how to screen for the ideal stocks to day trade with finviz. From there I narrowed the list down to a handful and researched all the way until the last second before open. I still couldn't decide 100% on what to bet on even after all that research, but my gut went with TRCH and I went all in again, but only with 2k this time, because my brokerage doesn't allow margins on stocks below $3. I shorted after 30 minutes and left with $200 profit.

These were the stocks I narrowed my list down to, and it's scary to think that I could have easily chosen a loser
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I didn't realize going all in with your entire account wasn't the norm until I couldn't find any articles online besides this one: https://tradingsim.com/blog/6-ways-to-manage-an-all-in-trade/

All I could find was to only risk 1-2% of your account per trade, but the way I trade, I only make 1 trade per day. It's hard enough to manage a single trade, I have no idea how everyone else keeps an eye on multiple positions with so much money on the line. After I short, I'm done and go on with the rest of my day.

I don't know I've just been lucky or I'm reading patterns correctly, because I feel like I only understand a bare minimum of what these charts are showing me.

Someone please enlighten me before I go all in on CRMD at Monday open
 

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timsk

Legendary member
7,612 2,383
. . . Someone please enlighten me before I go all in on CRMD at Monday open
Hi ST,
Welcome to T2W.

If all you want to do is gamble and see where it takes you - then carry on as you are. Just be aware that your destination is to lose all your money. No ifs, no buts. What you're doing is akin to going to the casino and 'going all in' betting the ball will land on red. You may get lucky and make big profits in record time but, sure as eggs are eggs, sooner or later the ball will land on black and you'll lose the lot. If you want to stay in the game for the short term - let alone the long term - you'll need to stop gambling and adopt a sensible risk and money management strategy. You'll find a steer on how to go about doing that here: Essentials Of 'Risk & Money Management
Tim.
 

Pat494

Legendary member
14,617 1,581
The average risk is about 2% of your wedge. So if you lose a few it doesn't matter too much. Nobody gets it right 100% so all-in is just plain daft.
 
 
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