No announcement yet.

The Case For Going "All In"

This is a sticky topic.
  • Filter
  • Time
  • Show
Clear All
new posts

  • The Case For Going "All In"

    In the world of trading, especially when it comes to stocks, there is always a persistent and bugging question as to whether you should diversify your capital or just find the BEST of the BEST stock and go all in with your money. By going all in I literally mean using every dollar at your disposal to buy the stock you think has the best chance to win.

    All-In one stock at a time:

    • Huge single trade gains
    • Your full cash reserve can be used and isn't on the sidelines of the market collecting dust

    • Can be mentally exhausting when a trade goes against you
    • Requires a lot of "testicular fortitude" to stand strong in positions when your account size grows to a "decent size"

    Overall I am a fan of going ALL IN with my trading capital. It just helps you grow faster. The one caveat I will add is that with this strategy you definitely need tighter stops for swing trading. Don't trade this way if you plan on having stop-loss orders 5-10% away from your entry or further. Your account would get absolutely decimated in no time.

    This method definitely requires the "cut losses short, let gains run" adage to be applied.

    Each method has its purposes and we even have a full article on the benefits of diversification that you can read here.

    Here are a couple of threads on the Elite Traders forum about diversifying:

    Do you diversify as a swing trader given commission fees etc?
    How do you diversify your trades?
    Platinum Swing Trade Alerts (FREE 14-Day Trial)

    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!

    Best FOREX Signals Software

    Stock Market Investing For Beginners

    Facebook Group
    StockTwits Room

    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    Terms Of Service

    This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

Unconfigured Ad Widget