Over-trading Definition

[soylent]

Hi PJ --

Nice link. I find it intersting that they show a '28%' loss on your portfolio as being acceptable R:R... But, hmmm...

Too much risk to put all my cash on one-two stocks. W/in equities, I actually 'diversify' into 3 categories:

NO MOVEMENT:
- Horizontal spreads (premium skews where I am price ambivalent) -- to SOME extent...

GRADUAL MOVEMENT:
- Bull Spreads: AGET Type 1/2 daily buys
- Bear Spreads: AGET Type 1/2 daily sells

CASINO NIGHT:
- Swings: Aget 13/30/60M as calls/puts

So, 2/3's of my cash is always 'inplay'. The other 1/3d I use for day-to-day timing.

I rarely buy any unleveraged position... I figure, why bother? At least, I haven't found a good reason to do it, yet...

[pj909]

Actually the 28% was of the capital provided for the trade. The risk is actually only 5% of the portfolio with a RR of 3.9 - when you play casino night it's nice to have the odds in your favor.