Fractional Shares ...trade $ amount?

[Tom Fraser 5]

I did a search on BBT with no results so ......

  IB  will allow fractional share buying for US stocks according to one of their videos I just watched

What are your thoughts on trading dollar amounts vs share size?  Pro's/con's?

[Tom Fraser 5]

 

9 hours ago, peterB said:

beware that it works to the negative side as well so if you do not stick to the dollar amount of buyng you can get 3 great trades with small priced stocks which moves 1% and you get small profit and then you get one TSLA like stock which moves only 0.3% against you and you lose all your profits from your great trades.

 

Peter.

The math make sense.  As for your above quote ...I learned that the hard way once.  I had a position in GUSH @$3.10 ish ...(3000 shares) and didn't factor risk.  The stock dipped 10 pennies ..I mean its only  .10  ...right?

Well as you know .10 x 3000= $300 ....to the RED 

 

A  .10 dip on AAPL is a polite 'finger to the nose' social sneeze   ...my story above is coughing out your dentures!

Thanks again for your time in responding.

Tom

Edited December 7, 2019 by Tom Fraser

[Brendon 146]

one word, Kyle's hotkeys!  risk $ amount, you can train your brain to calc shares on the fly, but as a new trader, i wouldn't recommend tackling that on top of everything else.

[Justin 264]

29 minutes ago, Brendon said:

one word, Kyle's hotkeys!  risk $ amount, you can train your brain to calc shares on the fly, but as a new trader, i wouldn't recommend tackling that on top of everything else.

Wait a min! I thought you were in the camp that too much automation was a bad thing 😋

[Brendon 146]

Oh yeah i am, come on guys, you got to hit that key to partial out at the appropriate levels. I think i'm all for automation for making the calculation processes simpler, but for the psychology part, like stops and partials, that really should be done by the trader's hands. 

[Tom Fraser 5]

1 hour ago, Brendon said:

one word, Kyle's hotkeys!  risk $ amount, you can train your brain to calc shares on the fly, but as a new trader, i wouldn't recommend tackling that on top of everything else.

Yup.  I have Kyle's hotkeys and have been modifying them.