I have traded stocks and options for a couple of years, made some money, lost some more. This journal will cover stock and option trading, mostly options. I will try to trade every day, but I have a job working at an auto dealership, so I may not post every day. Wish me good luck in making money! My plan is to turn 5k into 25k in one year (December 2012 to December 2013).
The original plan was to turn 5k into 25k, but due to pattern day trader rule, broker suggested a minimum of 25k. But some kind-hearted man advised me to place more than 25k into the account, because if the balance dips below 25k, I won't be able to trade every day, due to pattern day trader rule. So I am wiring 5k more into the account. It will take a few business days for the money to reach the account.
Week of Dec. 10-Dec. 14: -1500. Bought 50 shares of AAPL at $540 on Tuesday when it broke up. Was in profit on Wednesday, but got greedy and decided to hold. As the common sentiment seemed to be that AAPL was done selling and a rebound was due. On Thursday, it gapped down, put me in red. I set a limit order to sell at breakeven, but price never got to 540. So I decided to hold another day, which is Friday. Turned out to be a disaster. Sold at 510 in disgust. Chart looked it would fall below 500, didn't want to hold for a whole weekend. The only good thing out this loss is that I didn't use margin. I used to average in with margin, I am trying not to.
Got whipsawed, lost $800 in Apple. Someone told me to go with the flow and said Apple is in downtrend, I should sell instead of buy. So, on Monday, I went short on Apple. Initially, it looked good and Apple was apparently going off the 500 dollar cliff. But it turned up. I held overnight, as the trend is my friend. But Tuesday was ugly, it went up more. I held another night. But it just wouldn't go down today. So covered with a loss.
Traded crude oil today, lost $550. Thought it might go down further after overnight gap down, shorted 2 contracts in the morning, but it just inched up, refused to go down. Covered with a loss.
"Someone told me to go with the flow and said Apple is in downtrend, I should sell instead of buy" My advice (I know you didn't ask for it) is this - Don't listen to anyone's opinion when trading, after all it's your money, not theirs. And good luck with the trading. Regarding APPL, I don't trade it, but sub $400 is not out of the question imo. Of course, that's just an opinion, and it is probably wrong.
Looks to me like you'll have to transfer more $$$ into that account soon, the way you're going Better get a plan...any plan...Maybe paper trade for months, or just trade a few shares with super wide stops...You'll at least lose less, and maybe keep that 25K+...After a few years, you'll get a hang of it...maybe... Or just blow it all in a few weeks, and if that's what you're trying to do, you sure are headed in the right direction...
Wow, didn't know pain was so quick. Within three hours this morning, I lost $5000 on 5 contracts of oil. shorted at pit open at 90.20, three hours later, I capitulated at 91.20. I am numb now, but I will feel the pain next year.
Strangely enough, I don't feel the pain. It seems the account balance is not real money, just a change of numbers.