Position size advice for first time investor

[StockTrader010]

Just take excel and do a simulation with different returns, volatilities and correlations. Just look with which kind of swings you are comfortable with.

 

[tech/a]

Hi Tech,
Yep you're correct had a more involved looked and it doesn't actually explain how to position size with leverage.
More just some general info on CFD's and Leverage.
Although I'm only new to this game and yet to trade, let alone try CFDs from In the Red example about using Fixed Fractional Positioning he worked out we could buy 10,000 share @ $1.00 = $10,000 worth of shares.
My understanding (correct me if I'm wrong) is if I was using a 10% margin and a $20 brokerage fee, my total
amount of shares to be purchased to allow for this 10% margin would be.
[(Buy Price $1.00 * Number of shares purchased 10,000) * (100% - 10%)] + Brokerage $20 = $9,020

If the margin was 90% then it would be:

[(Buy Price $1.00 * Number of shares purchased 10,000) * (100% - 90%)] + Brokerage $20 = $1,020

That's my guess anyway :/

No.
This is not the correct way to use margin without increasing RISK
10 x Margin should not equate to 10 x RISK.

I'm suprised some of the other experienced members haven't demonstrated the correct way.

 

[StockTrader010]

On Bogleheads I read something about value averaging and dollar cost averaging.

These are really simple techniques that optimize and slice up your investment over time.