Welcome!
I cannot say that I am yet a successful trader, but I have been learning what I can and figuring out what works best for me. Though many come to the same general conclusions, every trader is different. My techniques are a mix of those I have learned from, as I am sure is the same for each of you.
I am looking to teach what I have learned, share my observations for what I see, and ,most importantly, learn from you. I hope that we all can gain something here from our experiences, and can all profit from it.
I am NOT a professional or licensed stock, investment, or financial advisor. What I post is what I see and why I do. It is up to each and every trader to make their own decisions based on whatever information they have. We all have to do our due diligence, and in the end, we are responsible for our own trades.
Like everyone, I have my bumps and bruises from learning my way. As reminders, I still have some holdings in my portfolio from my early mistakes, and given their current value, it really makes no sense to even try to rid myself of them. Instead, they serve as a constant reminder for me to create your trading plan, honor your trading plan, and hold yourself responsible for what you do (or don’t do). Don’t let FOMO (Fear Of Missing Out) kill your profits, or let the belief that something will come back make a loss even worse. Though, as humans, we cannot take emotion out of everything, we need to learn to put it aside and keep to our plans.
My Methods
I use a number of watchlists to glean some initial information from, as well as utilize a number of sources for catalysts, to get trade ideas, and add them to an appropriate watchlist. (I maintain a number of watchlists, such as ones based on which month in each quarter earnings are reported, industry, type of volume.
Catalysts are often a great means to derive value. But, from the watchlists, one of my keys for bringing a symbol for review is squeezes at multiple timeframes.
Once I have watchlists narrowed down into a trade watchlist, fibonacci extensions and retracements have become one of my favorite tools to help determine which potential trades I consider to be most viable. When combined with EMAs, SMAs, VWAPs, and Bollinger Bands, they give a good idea of what a stock is likely to do, as these tell a good number of stories, including momentum. And, of course, an examination of charts at multiple timeframes is a must. I use these to attempt to determine when something will move, the direction it will move, and how much it may move.
Once I narrow that down to a small handful of possible trades, it is time to look at entry points. Where are the best entry points for a potential trade, and is it likely that I can get into them at those points. Often, once I make a decision on a few, I put in my limit orders and the first two or three that hit it are the ones I take.
Trading and My Accounts
I primarily trade options, but do have various stock holdings. For a number of the stocks that I hold, they are ‘renters,’ meaning that I regularly sell covered calls against them for them to earn their keep. For those who don’t understand this strategy, I can explain later.
I trade from two accounts.
One account, which is primarily set up for swing trading, as it is a smaller margin account (don’t want to infuriate the SEC by violating the pattern day-trading rules).
The other is a cash account that can buy and sell options. As a cash account, my goal is to day trade in this account and be back in cash by the end of each trading day.
For those who want to follow, I gave myself a sizable challenge with this account. I see alot of ‘small account challenges,’ often for anywhere from $500 to a few thousand dollars. However, I’m calling my challenge the “Micro Account Challenge.” I started with $50 in the account on December 9, 2020. My goal is to prove that one doesn’t need alot to get started (mainly teaching my one son that lesson). As of this date, it is up to $130 after 9 trading days. (Some losses, but more gains in those days.)
Final Opening Words
Most posts going forward will be for specific observations that I have, though there will be some lessons learned from time to time. I will include charts where I have time to show what I see.
For those responding to posts, I expect that you are courteous and respectful. Use this as both a teaching and learning platform and help all of us to benefit and be profitable.
I look forward to sharing my journey, and look with hope that this journey shows lots of green. 🙂