Results tagged “Reflection” from My Trading Diary
Traded so well this week can afford Friday off. Will watch one share though as much for continued learning. Rest of time if available will look at preparations towards setting up a broker account.
I need to clarify my views on stop-loss - should I always apply them? And if so at what level - and whether fixed or variable. Also whether the amount should be a cash-amount or a percentage. I need to think further the relation between the stop-loss amount and my percentage requirement and what is sustainable over a weekly and monthly period.
I also need to improve my management of entry and exit levels. The latter itself overlaps with stop-loss. The entry is about being more level than the previous end of day prices - I need to check their Intraday movement to see whether the end of day was a spike or typical of the day's trend. Then the following day I need to check whether there has been any significant shift in price over night or weekend. If for example the shift has been up and has taken care of my percentage requirement then don't buy the share unless it falls back e.g. if gap or spike was a temporary blip.
Some days it is better not to trade - better to make no profit and thus no loss then taking a risk on a trade which I am unable to read. I could only do that a maximum of 2 days in the trading week or up to 9 in the trading month. Also more able to do that when taken profits earlier in the week, less wise for example to do this on a Monday - but some time that will be unavoidable. Also if doing this over a month then could say more able to do this end of the month than the start - whichever cycle I work off.
I take on board that I am paper-trading in bearish and volatile possibly catastrophic times and it may be better to watch this out - though at some point I will need to get my toes wet.
I will not be commencing part-time trading at this time as I think I need further learning and experience of managing entry and exits. I am pleased though with my stock-selection skills to date. I am at a stage where I will review this decision on a weekly basis.
Currently I am testing stocks 'dipped' in for the day then withdrawn with aim of 3% at least profit.
I wonder though if I should see how these shares go on up to 4 days after? To see if they achieve 6% after 2 days, 9% after 3 and 12% after 4?
Worth a look. Do this over weekend by referring to Microsoft Money for sold stocks and ShareScope for price movements since sale.
Nevertheless my purchase assessments are based on one day movements but it would be interesting if the triggers pick up upward movement beyond the next 24 hours - no reason why not as sometimes next day will lose upward momentum due to volatility - but over the next 2/3 days that may be ironed out. Issue though is how much money they would realize per day irrespective of whether they last 2/3 days. An advantage of shares staying longer is less commission over the trading period. And less research and work for me :)
I wonder though if I should see how these shares go on up to 4 days after? To see if they achieve 6% after 2 days, 9% after 3 and 12% after 4?
Worth a look. Do this over weekend by referring to Microsoft Money for sold stocks and ShareScope for price movements since sale.
Nevertheless my purchase assessments are based on one day movements but it would be interesting if the triggers pick up upward movement beyond the next 24 hours - no reason why not as sometimes next day will lose upward momentum due to volatility - but over the next 2/3 days that may be ironed out. Issue though is how much money they would realize per day irrespective of whether they last 2/3 days. An advantage of shares staying longer is less commission over the trading period. And less research and work for me :)
Currently I am only allocating myself about 30 minutes per day to pick-stocks. Clearly this is a time-slot which I would make the best part of my working day should I ever decide to go full-time, however as I already hold down a full-time job I cannot give it the full-time commitment at this stage.
Therefore if some days I am not able to pick what I judge to be a profitable next-day stock I should not be too surprised when I am giving myself in effect one-sixteenth of the time I would otherwise spend if full-time.
The main thing at this stage is to build up a series of successful stock picks over the rest of 2008.
Therefore if some days I am not able to pick what I judge to be a profitable next-day stock I should not be too surprised when I am giving myself in effect one-sixteenth of the time I would otherwise spend if full-time.
The main thing at this stage is to build up a series of successful stock picks over the rest of 2008.
