Hey everyone,
I've been in the community for almost 5 months now and trading live for about two months. I love the BBT community, everything I have seen and read have been super helpful.
I have a couple of questions regarding 1) Capital and Position Sizing 2) Fees Ratio
First one on Capital and Position Sizing.
Let say if I have $60000 in my account, and I am willing risk a max loss of 2%, that's $1200. How realistic is it in practice to actually deploy the entire $60k in one stock on a morning of a trading day. Example, say AMD is trading at $30 a share, how realistic is it to throw $60k on it to long/short 2000 shares. The reason why I am asking is because I trading a tiny account that's no where near $60000. I am getting in and out of one stock with relatively quick execution with a few thousand bucks of capital. What about a larger size account like $60000. Should I expect the same execution time in DAS or longer? Basically, i want to know what I don't know. haha.
So for those of you who've been trading successfully with a larger size account I'd love to hear from you.
Second question is on P/L-to-fees ratio
I am current have a ratio of 33%, meaning every $100 I trade, $33 goes to fees. What is the average ratio to expect that's consistent and healthy in the long run?
Appreciate your feedback
Dave 2Y