DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: atto who wrote (8138)	4/30/2000 5:24:00 AM
From: Mama Bear	Read Replies (1) of 18137

If I may add my $0.02 to this I think that position size relative to account size is not necessarily a good measure or the definition of risk. Would an account concentrated 100% in BRK.a be more risky than a 'diversified' account of 20 or 30 pink sheet penny stocks? How about an account that is 400% in CSCO for a scalp? This last point is that this is a daytrader's thread, or at least short term oriented so I think we have to assume that folks here know to cut their losses before they become unmanageable. With that assumption, it is the level of loss, not the percentage of the portfolio that is the actual risk. The rest of the argument is pretty basic stuff wrt a short sell being 'more risky' than a long position. With proper position and portfolio management, this is blatantly untrue. Oh, one thing you guys forgot in your argument is that the short sell deposited money into your account. $10k of the $12k needed to buy back the short resides in your type 5 account. But that's really neither here nor there. Regards, Barb

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