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Old 06-07-2006, 05:47 PM
SlowStroke SlowStroke is offline
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Join Date: Jul 2004
Location: Las Vegas, NV
Posts: 188
Default Position Sizing Questions for Mr. Now

First off, thank you for your Trading 101: Position Sizing post, I found it very helpful. But I have a question about one of the examples.

[ QUOTE ]
Your current account value is $45,000. One percent is $450. $450/$6 = 75 shares. For maintaining 1% risk, you can buy 75 shares of XYZ @ $80 with a protective stop loss at $74. You have approximately 1% of the portfolio at risk on this play.

[/ QUOTE ]

The above example describes my situation exactly.

But, how (or where) can I buy 75 shares of stock? Everyplace I've looked requires a minimum purchase of 100 shares.

Is investing $450 in a call option on the underlying stock a reasonable alternative?
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