I’ve been long overdue for an update, and I’m between meetings at work so here’s a brief update.
I started paper trading based on some principles learned in Andrew Aziz’s book mentioned in my last post.
Started with an opening balance of $25k. Over the course of 5 trading days I advanced the balance to $33k. Most would call this “a success” but I am not satisfied. The reason being is that I had a very poor plan, if any, on my biggest winners. I found myself chasing winners rather than a strategic entry. I wound up on the positive side of things but more out of luck than skill. This will not be repeatable consistently.
In addition to that, I got in front of the Facebook drama and ignorantly played around with Put options on FB, GOOG, and TWTR. I managed to pull out $7k in profits in two days. But again, this was purely speculative play on news without a good understanding of options. Will not be repeatable.
Lastly, I’ve picked up another book recommended to me: Mastering the Trade by John Carter. This book has greatly opened my eyes to the amount of learning I have ahead. Based on the first few chapters I’ve decided to hold off active trading longer until I can complete it. I learned of the “fake orgasm” strategy, scanned the market over the weekend for potential opportunities and came across ENR with the right setup. Paper traded it today on the short side. Entry price: $59.58, profit target of $56.61 based on Fibonacci extension (61.8%). Stuck to my plan, it followed my forecast and I executed my plan exactly as intended. I’m not sure if it’s the book or just evolving my trading maturity but closing this trade felt a hell of a lot better because I could tell you exactly why it moved the way it did.
glad to see your updating your blog. Just a word of caution but you probably aready know this, your biggest losing trades are always immediately after your big wins, when you're all cocky and think you've finally cracked it... trading psychology 101. We've all been there...
Look forward to some more posts !
Thanks. My big wins to date have come opposite to what you describe. I abandoned my strategy/plan either due to loss or what I felt were too small of wins, and started chasing low float stocks that were moving quickly. I had reflected on how I was winning and realized it was pure unsustainable luck and the big wins could have just as easily went the other direction.
so what kind of asset classes are you going to be trading on, FX, metals, commodites, bonds etc ? Or are you going to be doing crypto like everyone on here ? (except me, I won't touch it :-)
Strictly US based equities to start. I love crypto but that’s for gambling, not paying bills.
"that’s for gambling, not paying bills"
I wouldn't say that too loudly round here, you should see the stick I get for it lolol
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