Keep brokerage account small? | Psychology and Money Management


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Keep brokerage account small?

  #7 (permalink)

North Carolina
 
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
 
Posts: 644 since Nov 2011

You are responsible for your losses regardless of how much is in your account. Some brokers provide daily loss limits but you are correct that not all do. You can open a sub account if you want to try to use that for protection: although, you would still be responsible for any losses. Right, you should keep the minimum you need in any brokerage account to reduce the risk of the broker going under, hacking, etc. You can put the rest in t-bills(? not sure how this exactly works) or park it in a stock like MSFT (not a prediction but where I'm parking some money).

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