Saturday, February 9, 2013

Is it possible to trade on 15 shares a day?

Yes. Its  possible. 

We  have 10 buy calls and 10 sell calls. Also shares vary into at least 4 sectors. So for executing the trading plan is easy as trader getting enough interval between each trades. 


Let’s say you determine that 40 percent of the time, a trade loses, and it loses 0.92 percent (based on our last weeks average). Sixty percent of the time, the trade wins, and winning trades are up 1.75  percent(based on our last weeks average). With these numbers, you can calculate your per-trade expected return, like this:
% of losing trades x loss on losing trades + % of winning trades x gain on winning trades = expected return
Which in this example, works out to be:
.40 x –.0092+ .60 x .0175 = –.00368 + .0105 = . 0.68
On average, then, you would expect to earn  0.68 % percent on every trade you make.



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