I'm moving from the east coast to the west coast in one week. My primary purpose in so doing is to gain the ability to devote 100% focus/attention to trading stock and stock options for about one hour every morning (before work) and one hour at the end of the day (during lunch), which would allow me to also manage my career more effectively. If successful over a 6-12 month period, I intend to seriously consider leaving my career. My past is full of some big "ups" and some bigger "downs", which I blame on lack of focus and an unhealthy desire to swing for the fences, rather than consistently 'just get on base' - I intend to correct this during my stay in Oregon. Below, I'm going to draft up some broad-based rules and portfolio composition targets, and fill in the gaps over the next two weeks. I invite and appreciate any constructive feedback as my main purpose for signing up on this site is to thoroughly vet my plan. 1) Portfolio Structure: a 401(k), a Roth IRA, an HSA, and a margin account with Interactive Brokers. a) the 401(k) has a brokerage account attached, so it will be about 75% dividend paying equities and 25% index funds - dividends will be strategically used to maintain a similar ratio over time, and I won't be contributing to this account; b) the Roth IRA will be full of dividend paying equities with attractive technical attributes, and I will be maxing out the annual contribution; c) the HSA will fulfill the 'bond' portion of my portfolio, and I won't be contributing; d) the margin account will contain 50% dividend paying equities, one or two concentrated positions in growth stocks comprising 25% of the account, and the remaining 25% in cash for day trading, the level of contributions and withdrawals will be determined by performance and overall portfolio objectives; 2) Method: use price action, volume, and a few indicators (MACD, Parabolic SAR, Stochastics) to determine my level of conviction in both long term trends and the short term trades; be mindful of multiple timeframes and remember that short term trends yield to long term trends; be mindful of continuously locking in profits and quickly closing out losers (with a mindset to re-enter the same trade at a better price in minutes or hours) 3) Entry and Exit Criteria: for my day trades I will refer primarily to the 1/3/5m charts, and the 1hr+ charts for core positions and swing trades; I intend to utilize trailing stops and identify profit targets based on fibonacci levels and previous areas of support/resistance. As said above, I intend to revise this and add to it over the next couple weeks. All constructive feedback is appreciated.
No comment on your trading plan. Just wanted to say that the Pacific Northwest is a wonderful place to live. Been here (Portland area) for 4 years now and we love it. Enjoy the change of pace.