Larger postion notes.

Currently I am trading 100 share lots. I plan on bumping that to 200 after another week if I can see some consistant gain days.

I am currently sitting at just above 2% after suffering a pair of losing days due to screwing with my method...I should know better. Having said that I have a spread sheet that shows me where I would be if the only difference in my trading was larger position sizes of 200, 300 and 400 shares. I think that my order fills might be affected by the larger positions but I will ignore that factor as I believe it to be pennies per trade, if that.

position        current net gain   return     Goal 
100                  $98            2.45%       5%
200                 $336            4.00%      10%
300                 $574           14.35%      15%
400                 $812           20.30%      20%

Part of the difference is the fact that commissions are only paid once per trade so this adds to the return as they are 0.25% per trade. The other factor is, of course, the more shares the more money made per penny move.

Basically I am under capitalized which severely restricts my trading activity but also keeps me out of serious trouble should my theories not work out. So if I can make a go with $4K then once my portfolio grows, how ever slowly, I should see better results in future.

Of course the other factor could be that I only trade two hours a day. Had I the luxury of chosing to trade all day I would try to find a stock that moves well in the afternoon, if such a stock exists, and work it later in the day.

JD.