I am often asked questions regarding my trading strategies, but recently I have seen an increase in questions that have to do with comments I make regarding a trade in a particular account.
With that in mind, I thought I would put a little detail in to how my trading is set up from an account perspective. I run 4 accounts:
- Long Term
A large part of my trading activity is in the first 3 listed accounts with the Daytrade account being the most active. For me, it has just been easier to utilize the different accounts with a strategy focus for each. I do not have all the accounts at one broker either – I like to have the ability to work around issues that may reside with having only one vendor.
Of course there are some caveats to this structure. For example, I do end up with option trades in the other 3 accounts at times. Also, a trade in the Daytrade account will turn in to a swing for various reasons.
My LT account contains stocks that I view as good investments, and I will sell calls against them each month for additional income. This will cause me to have to re-enter from time to time as the stock is called away. So be it. IBM is an example. ORCL is another.
Hopefully that helps provide a little more insight into my approach. Trade ’em well.