I pulled back to trading 25 share positions for testing and have found that it creates an interesting problem...I am willing to just hold it almost no matter what so profit and loss have no real meaning.
Normally I get a little antsy when a profit builds up and I sell too soon or I the reverse I jump out just before the low turns. This is not so much a dollar gain/loss issue...or so I thought.
In my current small sizing I have seen my positions hit $2 per share and was willing to hold it open and perhaps just move my stop up...after all, $2 is really only $50 gain less my $10 commission...$40. Had I been holding 100 shares I would have sold at the $2 mark to lock in gains of $200 rather than let it hold, or even sell half.
It almost seems as though a 25 share position is just too small. I know it takes 40 cents to break even due to commissions so I have no choice but ride the price action out longer, that was sort of the plan. My next step was to bump up to 50 shares as this still allows me to hold a few trades simultaneously, part of my diversity planning.
It turns out that my two current trades are creeping back down and I seem to be quite willing to let them go for a while yet to see what happens.
More trading to take place today.
Jeff.
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