Welcome! And thank you for joining!
This is the beginning of a series (if all goes well) about my experiences (and mistakes) in trading stock. I know, this is a heavily crypto-based community, but the theory is relevant to both. My hope is that this will assist others who are interested in trying their hands at trading, and that we can help each other learn about how to do so successfully.
Recently, I began my foray into stock trading. Specifically, day trading. I was (I think) smart about it. I did my research, learned the lingo, and familiarized myself with some common techniques. I even spent two weeks watching the markets to see if I noticed any patterns.
I have no delusions, day trading is as good as gambling. I alotted myself $200 to trade with, little enough that I could afford to lose it, but enough to give me some room to play.
I spent some time learning about swing trading (taking short-term positions, about a week long usually, to take advantage of a brief uptrend), day trading (specifically, purchasing stock and selling it within one day), how to use a few stock screeners (I found that https://www.stockfetcher.com/ offers powerful, free tools for finding stocks that meet your specifications). I did research into several exchanges and ended up choosing Robinhood for my short-term investments because it is free of commission. If you decide to try it out, you can use this referral code, https://share.robinhood.com/jacobr1012 , and we'll both earn a free share of stock; or you can easily find it on iOS and Android app stores.
Okay, I've done my research, chosen my exchange. Finally, I think I'm ready. It's time to make my first purchase.
Day 1: I begin with a very hesitant toe in the waters. One $30 share of a stock that was very active that day, sold one hour later at exactly the same price after it had taken a brief dive. Alright. Well, it was a start.
I watched the markets for a few more days, looked for more patterns.
Finally, I had it. Longfin, a recent participant in the blockchain craze, was skyrocketing. Over 40% the day before, another 10% after-hours (some trading occurs between the hours of 4:15 and 8:00 PM via "electronic communication networks") and rising yet another 11% premarket (8:00 to 9:15 AM). This feels good. Now, let's invest.
I purchase about $80 worth of shares in Longfin and proceed to watch obsessively. A thrill runs through me as I watch my equity rise. Suddenly, I've earned over $250! And the stock steadies.
Here's the moment of truth. It's been skyrocketing for two days now. Do I sell now? Or wait and see whether the stock moves any more.
Well, I waited. Five minutes and no change. Then, in literally one second's time, my earnings plummet from $250 to $60.
My heart in my stomach, I sell the shares, salvaging the little profit I have remaining.
- First lesson learned: When in doubt, sell (especially if you've made a profit).
Thanks for reading. I hope it was helpful, and I have more hard-learned lessons to come.
Congratulations @mrawesome1996! You received a personal award!
Happy Birthday! - You are on the Steem blockchain for 1 year!
Click here to view your Board
Congratulations @mrawesome1996! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!