As many of you know, I am a novice trader, yet a professional one (by definition, I guess). I have been trading stocks since August of 2007 when I stepped out of Paper Money (i.e. trade like it’s hot, but with monopoly money) and into the big bad world of real money. As I am learning (you are ALWAYS learning in this profession and as a Scholar, I love it) I have found out that I have 3 basic trading styles all of which I will highlight for you in my results for today. Just so you know, today was a DOWN day in the market… the Dow Jones (the main stock indice that people use) was down 293.00. So do you want to know how I did or should I tell you about my styles… Let’s go into my styles:
The Zombie: Plan my Trade and Trade my Plan, I am only under the control to make money, but I do it without emotion. I set my price target and I act on it. If I thinks go wrong, according to my Plan, I get out. The Rules are the rules because they are the rules.
The Sniper: I am in to get a quick hit of cash. Typically set around $100 or 10%. Set it up, get in, get the shot and get out. I don’t typically milk the trade, but if it jumps in my favor, I chase the cash with a tight Stop Loss (gets you out at a set amount). Typically, these are low risk trades and last a short time.
The Gunslinger: I get gun happy. I shot at things with little forethought or try to chase things bigger than what they appear or are telling me. I catch myself in a gun fight with the stock and I almost always lose.
So this is how I did today:
Here is how to read this:
Symbol is the Stock Symbol
Mark Chng is Market Change for the day of the stock price
%Change is the percent change for the day
P/L Day is the Profit or Loss for the day
P/L Open is the Profit or Loss since I opened that Trade
P/L YTD is the Profit or Loss for the Year to Date for that Stock Symbol
The Short Version: This was by best day by far. My previous best day was +$1196, but I do have bigger trades here. I was fortunate that the market moved down while I was away from the computer. I had no idea how my day ended until 6:30pm.
The GunSlinger: Look at FSLR (First Solar, Inc.) in the 1st trade I made with FSLR I close at +$1800. However, Gunslinger got involved and now I am down in the Trade and down for the Year (-$1295). At one point I the stock was stuck in between two of my trades and there for the stock had to move ALOT for me to get out unscathed. Also, look at BSC (Bear Stearns), I was in the huge drop on Friday to the tune of making 900% on my trade (that tune is I’m in the Money, I’m in the Money). However, Gunslinger decided to buy a Call Option, only to have BSC hit rock bottom on Monday with little NO chance to recover the monies. But you can see that the P/L YTD is in the Green, so I made $42.50 on a $60 investment.
The Sniper: ICE (Intercontinental Exchange) ice baby. ICE was a trade that I took too soon and went into Gunslinger Mode. So much a Gunslinger mode that I daytraded (and did get some of my money back) but I slapped with a margin, meaning that I had to add more cash to my account since I am severely under the minimum amount to daytrade. In anticipation of a down day, at least maybe in the morning OR in the afternoon (but not both). I took the trade at opening bell, made my 25% and got out. Boom, Boom $520 and I got out. Truth be told, I could have made more money had I stayed in but that wasn’t how I was treating this trade. I have no regrets. Okay, I do have one regret that I didn’t have a larger trade to work with… I only had 2 Put options in this trade.
The Zombie: This is where the rest of the trades came into play. DBA (this one was left to rot out in the hot sun) but the other part of this trade was a mindless transaction. Unfortunately it didn’t work out. IWM (Russell 2000 Index) and SPY (S&P 500 Index) were both new trades today (although I had traded SPY earlier this year). I will set stops for both of these so that I will come out profitable. XL (XL Capital)is a trade that I have been in for a while and has been pretty stress free (although it has retraced – meaning gone in the opposite direction- for a while). You can see that I am up considerable for this stock, not sure what the return rate is but you can better believe that it’s better than what the bank is paying you… LDK (LDK Solar) is a solar stock that has been a little tough to trade. I am down for the year in this trade, I didn’t take the cash when I was in the green, but I have about 30 days left in this trade to make the money back. SBUX (Starbucks) – this is one of those trades, that I bought thinking it was going to go UP but it goes down, so I sell it thinking it was going to go DOWN, but it goes UP. *sigh*, It’s a small amount of money (relatively speaking), so I’ll probably take a small loss and go drink my Tall Soy Caramel Latte (although, I might make out with some green).
So as this probably bored the tears out of some people, this gave me a chance to write DOWN, how I trade so that I can be a better trader. This way I can have kick-ass stuff for contest on this site. Plus I can do stuff like Asperger’s College Scholarship, Sponsor an Athlete for a Marathon or Ironman for the fall, Wii for the house, and many other COOL ideas that I have running around in my Noggin. Oh yeah, there is stuff like lower our credit card payments and build emergency stash… but that is like… BORRRRing.
But I should stress is that none of this is a suggestion to buy or sell any of these stocks. You can lose significant amounts of money (like FSLR above) and you should know how to manage your RISK (the KEY to it all). All I am providing here is historical data on my trades.
“I’ll take you out like a sniper on a roof
Like an M.C. at the fever in the D.J. booth”
-from Professor Booty by Beastie Boys
I hope to understand this better one day. I definitely need to set up investments for my long-term future.
I just like spending money, managing investments is too much work.
WOW! Looks good to me. Of course, I only have a financial planner guy to do those things for me…
T-Money! That’s about the best description of the styles of investing for the common investor that I’ve ever heard. I would have to say that I’m more of a sniper followed by a gunslinger.
Jimbo! Thanks for leaving a comment! I can see you as gunslinger… oh yeah… REGULATORS!!!!