GoodPunk6's Trading Journal
- Thread starter GoodPunk6
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How much $ do u need to make in order to breakeven so u can get a paycheck on potential profits?
I hope you are begining to realize that risking 3 cents to make 3 cents is not a profitable money(risk) management strategy. Your loss to profit ratio is only 1:1 before commissions, it should be at least 1:3. this will allow you to consistently make money. You keep losing money almost everyday, realize that something is wrong with your strategy and change something. Why do you expect to make money tomorrow doing the same thing you have been doing for the past 3 or more losing months?
Ok. This is something I used to struggle with and still do. With 1:3 Risk/Reward ratio, you're going to get stopped out too many times.
I just prefer a 1:1 with a higher percentage winners.
The point is that if u factor in such a hair thin profit margin, commisions, slippage, and order errors... scalping for pennies is a losers game. Complete waste of time and money.
In order to make it daytrading u will have to nail 10-30 cent moves on stocks that are over $50.
Like i said before.. this kid will learn the hard way.. that an edge is needed before you trade. It takes years and years to develop and most think that they can just stare at monitors all day and pick one up as they go along.
The fact that his mentors arent encouraging him to trade the right types of stocks questions the whole thing. Trading $5 stocks is remotely different than trading $50 ones. You dont start out trading $5 ones then goto $50. U start out trading 100 shares on $50 stocks then u move up 100 shares every profitable week or month.. or until u feel comfortable. From the very beginning he is playing a churn and burn game.
--MIKE
In order to make it daytrading u will have to nail 10-30 cent moves on stocks that are over $50.
Like i said before.. this kid will learn the hard way.. that an edge is needed before you trade. It takes years and years to develop and most think that they can just stare at monitors all day and pick one up as they go along.
The fact that his mentors arent encouraging him to trade the right types of stocks questions the whole thing. Trading $5 stocks is remotely different than trading $50 ones. You dont start out trading $5 ones then goto $50. U start out trading 100 shares on $50 stocks then u move up 100 shares every profitable week or month.. or until u feel comfortable. From the very beginning he is playing a churn and burn game.
--MIKE
No its not. You are doing a good job executing. Its the lack of edge. I dont want to be harsh on u because u are nice likable guy... but someone needs to tell it to u straight.
I can't believe you are still scalping LU after this long!!!! 
.......Your firm is making a complete ass out of you!! Using you only to churn commissions
You seem like a guy that really wants to learn, but your mentor and firm are not training you right. It seems like you work at a POS firm that only wants you to churn commisions for them and waste your valuable time
.......Your firm is making a complete ass out of you!! Using you only to churn commissionsYou seem like a guy that really wants to learn, but your mentor and firm are not training you right. It seems like you work at a POS firm that only wants you to churn commisions for them and waste your valuable time
Tomorrow why dont u try trading 100 share lots of TXN, IBM, MWD and GS tomorrow.
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