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!
Friday, October 23, 2015
How my Pretend Trade Did
Today's "pretend" trade on $ARO would have likely been one of my best executed trades. I followed my rules and it paid off nicely. I know not every trade will go like this but this is the basic rundown of it.
Remember... this is not an actual trade, only a "pretend" or paper trade.
There are two possible ways that this would have taken place depending on when I entered. But the results are very similar.
Option #1: The Morning Spike
In this option I would have placed my entry right at the opening and road the momentum within the morning spike. The spike quickly rose to the 12% gains area and I would have placed a hard stop loss at the 5% gains level as it climbed. Once the stock reached and passed my target of 10% I would have taken profits as soon as it began to turn red. This would have likely had me exiting with roughly 9% to 11% gains on the trade.
Option #2: The Bounce Play
This is the more likely play that I would have taken part in. Mostly because at time the market opening is taking place I'm in the middle of getting my kids up and out the door for school. I would have entered around the $0.73 range and fairly quickly placed a hard stop at the 5% gains level around $0.72. I would have then let the trade breath through the day and close out the trade near the EOD with roughly 11% to 12% gains.
Of course it goes without saying, that if I was dealing with a larger account I would have likely played both and doubled my gains.