Hi guys,
This is more of a theoretical question as I don't really apply this in my actual trading/investing style yet. I have my general investments in funds and stuff but I leave $1000 on the side to swing trade here and there when an opportunity presents itself (don't really look for stocks to swing trade). When an opportunity does present itself I usually don't hold longer than 2 weeks and in most cases just a few days, and these stocks I swing trade are generally "safer" high cap stocks so if it does go red I honestly just hold it for longer and sell it when it goes back up or my losses are minimized (no leverage or option trading, simply buying and selling the stock).
I generally take out my position anywhere where I am up 5% - 10% (ALWAYS I never go past this point). So between $50 -> $100 profit with the $1k I invested. I have been doing this the last while and up around \~5k. Keep in mind I only swing trade no more than $1000 at a time and invest any profits back into my "general investment" portfolio so my swing trade position is always fixed at $1000.
I guess my question is what is stopping me from doing the same thing with $5k or $10k for example where each trade would get net $500 - $1000 instead?