Today was another wild day for $GLUU and we saw a pretty large mid-day dip that pulled us all the way down to $6.67 a share. This of course pulled the trigger on my trailing stop with my 1st position's 8% stop and killed the trade @ $7.00.
I'm a little bummed because the stock recovered as it likely would and now my position for the ER is a little over half the size. But I can't get too mad since the stop did it's job and locked in profits of 15.70% gains!!!
It'll be fun to tally up the wins and losses from the last couple of trades and see where my account is sitting. I liquidated the other stocks I had in the IRA and will be trading with a full capital. This will allow me to trade with $300 to $400 positions and have enough to cover an 8% trailing stop from the get go... no freeride waiting time. Also, when factoring the commission per trade I'll only need 4% to 5% gains to break even vs trading with $100 to $200 positions were a near 20% gain is needed to cover commissions. With swing trades, a 4% to 5% gain is a lot easier to see and 6%+ gains over the course of 3 to 10 days is likely.
Welcome to my blog. A lot has changed since I started this thing. I'm now trading live after about a year of paper trading and studying. Originally I had planned on starting part time and slowly growing my account but life has a funny way of changing your plans. I found myself at a crossroads of sorts and quickly realized that I was being given a once in a lifetime opportunity to pursue my goals. I took the leap and I'm not looking back. Follow me here and see the triumphs and the losses.
I tend to look for momentum trades that I can hold for anywhere from a few hours to a few days. I usually take positions of $5k to $10k in size to allow larger gains on smaller percentages (it's easier to hit a 1% to 5% gain vs a 10% to 20%+ gainer) and I like to use a trailing stop.
This blog is a way for me to log my progress and to aid me in learning, I hope that you find it useful. Financial freedom isn't given, it is earned. So plant the seeds of education and grow your pennies!