tryin to buy an nsx

Discussion in 'Journals' started by keyser1, Jul 17, 2005.

  1. keyser1


    I'm going to start out with 5k in an acct. My goal is to make enuf money (in the next year) to get myself an Acura NSX* (or possibly their new sports car since 2005 is the end of the line for the NSX and honda has said there will be a new supercar, although haven't given any details yet).

    Since I need the money to grow really quickly, either penny stocks or option trading is going to be my best route. I'm not going to be using margin, and not going to be selling options (hence I cannot lose more than the 5k initial investment).

    I need to raise anywhere from 30k - 100k from my initial 5k investment for this to work.
    30k gets me a used 1991 - 1993 NSX + insurance + taxes.
    100k should gets me a new 05 NSX + insurance + taxes.
    Also losing 5k will have no effect on my current lifestyle so I have no fears of going all in.

    I'll chronicle all my trades in this thread. If anyone has helpful suggestions I would appreciate it.

    FYI: if ya dont know this is the nsx...

    *There's also a small possibility that I'll go with the Mercedes E55 instead although in the case of an E55, I would only buy new.
  2. A few questions:
    1. Have you traded before?
    2. How long have you trade for?
    3. What will happen if you lost your entire $5k in one trade? How much damage will this cause?
    4. How many people/traders have accomplished what you are trying to accomplish whether in your life or here in the ET journals?
      [/list=1]If you don't wish to answer and want to just go on with your journal, then more power to you. If you want some input, then provide some answers and thoughts behind your plan.
  3. cmk



    This is BY FAR the best thread I have ever seen in my short life on ET. Oh my god this is so funny.

    "Lets go out to the money tree and pick off enough bills for a rice rocket"
  4. 996tt


    Absolutely the best way to lose ALL your money is to think about what you are going to buy when you make money. By the way you should get a 996tt instead
  5. I swear someone made this same proposal 2-3 years ago. It may have even been for an Acura NSX as well. Some neophyte who couldnt keep it to himself, but had to litter the board with his delusional concept of what success means.

    Let me guess, you still live at home with mom and dad too right?
  6. ig0r


    Haha, awesome dude. I'm currently trying to figure out how to import a Vauxhall VX220 to the states. Anyways, heres my $0.02 regarding how to best go about pulling this off. $5k is no where near enough unleveraged to make any legit coin, so a calculated gamble is due :) Personally, with vol levels down here, I would spend the year buying far OTM options, preferably puts. Worst case scenario, you bleed $5k. Best case scenario vols spike market dumps you make big bucks :D
  7. keyser1


    1. 1. A little. I've been investing (mid - long term) for 3 years now, just started short term swing trading options. So I'm a trading newbie.

      2. Swing Trading (ie less than 1 week per trade) for 2 months now. All my swing trades so far have been on stocks that I'm long on, and with which I've noticed have gone into short term trading ranges. I'll probably continue this strategy.

      3. Perhaps I'll feel a little bad, other than that -- absolutely nothing. I've got a steady job that brings in more money than I spend. In my 3 years out of college, I've managed to contribute/grow my retirement savings accounts to about 80k, so (assuming I keep up the contributions for a few more years) I'm in excellent shape for retirement. I've got about 30k in non-retirement savings (all in the market) + 30k value of my current car. So basically I'm going to use 5k of my non-retirement savings to try and meet this goal. If it goes bust, perhaps i'll get some education along the way which could make it worthwile.

      4. Percentage wise, probably very small. There was a 5k to 100k thread on here that got me thinking about it. I guess I'm thinking "Can I really do this?" If I thought to myself "I really can do this" then I'd be putting in more than 5k to start.

      Right now my strategy looks like:
      1. Find rolling stocks, and trade go long on calls on the low end of range, puts on high end of range.
      2. Similarly for penny stocks, except go long on the stock.
      In either case, going for 5 - 25% gains in each trade. If the trade stays flat for a few days, then exit. If it goes against me, give it the few days to rebound or exit at a loss.
      3. I'm also considering taking some profits off the top every positive trade and into something more conservative (maybe something like 10% of profits). I'm not sure about this at the moment. On the up side, if I screw up a trade, I'll still have reserves. On the downside, it'll reduce my potential growth.

      Also trading is going to be either in an ameritrade or fidelity acct (haven't decided which one yet), so commissions will prohibit day trading for small amounts. Also I've still go the full time job, so time spent on the markets during trading hours will be limited to probably about 2 hours a day.
      And considering my goal is to grow it rapidly, the best way of achieving that appears to be to go all in on every trade (atleast until I accumulate a significant - 20k? balance). I do realize though that this is also the best way to go bust.

      Also my original post is flawed in that I forgot to account for capital gains tax, so add about 60% or so to the goals.
  8. keyser1


    I like your thought process. Any suggestions on potential calculated gambles?

    I've already got my first trade planned and will post once/if it executes on monday.

    No need for personal attacks. Its been said that there's a correlation between having 'unrealistically' high postive expections and being successful, ala the self fullfilling prophecy. If one believes they can do something, and one will find a way to make that dream a reality. The question at hand is am I one of them? I dunno...

    Perhaps...I'm not a fan of the Porsche exterior though (just a personal preference)...I assume you own one & are happy with it...Also i realize the nsx is overpriced/outdated, but I'm an acura fan (currently drive 05 tl) so i'm definitely biased & i love the way the car looks from the outside. Hopefully the nsx replacement (which honda hasn't said much about except a one paragraph press release) will bring the engine in line with the competition. But it seems like some manufacterer releases a car much better than competition every year, so maybe next year there'll be something better to spend my 5k ->? on
  9. cmk


    My only advice to you would be to use Interactive Brokers to keep your comissions nice and low. I do not trade options with them so i am not up to speed on comissions for them, but I would imagine they would be much cheaper than Fidelity.
  10. Keyser1,

    Here is your solution. You can do it with (2) 11 pt trend days on ER2. Some firms will even let you use the open P/L to compound a winning trade with additional contracts! Yeah!

    <b>$5,000</b> acct. starting size
    $5 rt incl. all fees per contract
    $500 ER2 daytrading margin

    Day 1:
    All in - 10 contracts.
    Once up 3 pts, add 6 more.
    Once up 6 pts, add 8 more.
    Once up 11 pts, Move to Cash.

    10 contracts:
    10 * ($100 * (11-0.05)) = $10,950
    6 contracts:
    6 * ($100 * ((11-3)-0.05)) = $4,770
    8 contracts:
    8 * ($100 * ((11-6)-0.05)) = $3,960

    End of day 1 account balance:
    $5,000+10,950+4,770+3,960 =

    Day 2:
    All in - 49 contracts.
    Once up 1 pt, add 1 more. (You might as well make it an even 50 contracts).
    Once up 11 pts, Move to Cash.

    49 contracts:
    49 * ($100 * (11-0.05)) = $53,655
    1 contract:
    1 * ($100 * ((11-1)-0.05)) = $995

    End of day 2 account balance:
    $24,680 + 53,655 + 995 =

    That should be enough. (hope I got the #'s right). Good luck. Remember, stop losses and money management are for losing traders only. Sit and wait for the obvious strong trend day, and strike! Then you can retire from trading, up a whopping 1587%.

    #10     Jul 17, 2005