drjoe - 5% of 50% of the account to purchase 100 shares would require a large account to trade freely. Even a moderate size account of, say, $50K would restrict the trader to shares priced below $25. Looking at your positions detailed in an earlier email would suggest your account would be very substantial indeed. Peter
--- In ConservativeOptionS
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> george i totally agree, i am not a believer of gils strategy, trust me it is not conservative and one should be cautious. i don't believe using that strategy during 2008 when just about ever stock was down 40% or more would provide income monthly.....
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> unless trading etf's i don't believe putting more than 2 at most 5% in one individual stock with at least 50% or more capital available in cash for adjustments is safe...drjoe
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> --- In ConservativeOptionS
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> > Gilbert - I find your trades quite interesting. I have done that. It is easier to keep up on 3-4 stocks, in fact, you can become a specialist on them. You get to know how they usually react, that certain movements during the day often signify upcoming change which you can profit from. You have to watch them like a hawk, and be ready to act in an instant, or possibly suffer big loss. If you have a very large position, you cannot enter stops, because the market maker will take advantage of them. In my opinion, this is NOT A CONSERVATIVE STRATEGY. Unless you spend all day in front of your computer, keep up on CNN, etc it is high risk. George
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