Interested in trading again

L

lundy

Hi, some of u may remember me, others may have heard of me.
If not, well, let me introduce myself.

I am 27 years old, I have had good as well as bad experiences in the markets, and I have taken some time off to reflect on them.

first the good:
I have learned a lot about myself. And I have met a lot of great people at Vtrader and Market Compass as well as on this forum.

now the bad:
I traded OPM and didn't know what I was doing. Later on some nice people at Vtrader and Market Compass helped me out a lot, but the situation ended due to non-trading related matters. Either way, I am done with OPM.

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...... At present, I am in Hawaii and interested in trading again. For the time being, I plan to share my papertrading here while I try to refine my technique.

While I am doing this, I will be working and saving capital. Noni picking and other things :D.

Because it is my own money, and I have limited means of getting at it, I will start with a small account size, and use options to maximize buying power.

I estimate that I will save $500 a month, and within 6 months, I will be ready to go live.

I have recently read on these forums, people soliciting money and saying how good they are, and how much they can make. This reminds me of my past self. Thus my reason for starting my journal before I go live is to show myself as well as others that a good work ethic will reflect in a good trading ethic.

This is a serious journal, and therefore I am not inviting bashers. I may have given reason for bashing in the past but people change so give me a chance. Otherwise who will give your imperfect self a chance? (rhetorical)

I welcome all constructive comments.
 
Because I am working to make money, I will swing trade and hold overnight. I will use options to limit my risk, rather than stops, which can't be adhered to during gaps.

I will focus on trading stocks, using options to hedge. For the sake of papertrading however, I will use stops. So at the moment I am focusing on technique or edge, along with money management, not actual execution.

I like to work with candlesticks, chart patterns, volume, trends, and if I have access to it - market profile.


Tonight I have been studying COST. Here is my analysis.

789375.jpg


It looks like a strong reversal pattern to me. 3 up candles, each with its own pull backs, yet price goes higher.

So I will call my papertrading broker and have him buy for me at the open so long as it is below 50 and above 48.6, to convert to a limit order of 49.5 if it opens higher than 50.

Stop will be 48.6

I intend to change my exit depending on what the stock does, as well as the market.

But for now I intend to exit at 55

I set my target for 55 because if I am indeed correct that the stock will make a move, it will break out of the current range and will be at a new 5 year high, this means it could go quite a bit.

789376.jpg


The monthly chart looks like a bull flag. I don't mind buying at the top of the monthly chart, since there is nothing to indicate a huge move down.
 
PDCO looks very bullish as well. The large buying volume on January 11th, and then the new low on low volume indicates to me that there is no follow through on the downside. Now we have a higher low and 3 strong looking white candles. Indicates buy to me. Also not much selling volume on this recent retracement.

789396.jpg


So, at open my papertrading broker will buy this stock below 34.25 if possible, with a stop at 33.6

Initial target will be 41.
 
well COST opened at 49.68 and PDCO opened at 34.23

considering slippage, and my desired entry prices, I have the following entries this Monday morning as confirmed by my paper trading broker.

bought COST at 49.75
bought PDCO at 34.25 (my limit price)

both are up in intraday trading.

I am off to work.
 
I do remember you Lundy. Hope you can work things out. I went to Hawaii right after it became a state for a couple of years. Went into the taxi business. It was all new then and all you had to do was get a car, some insurance and a business license which was only few bucks. I bought a 51 Cadillac for a thousand bucks and people loved it because there was so much head room. Those were the days. I wonder what a cab license in Honolulu goes for now.
 
I am looking at CI and seeing it near all time highs. However it is showing some weakness. First it has been in a range, and then the breakout. Now it seems to be showing weakness. I think it has put in a top.

However, I will wait for a lower high from which to enter my short.

I am still long PDCO & COST. Neither have hit my stops or my targets, but are moving slowly up.

I have had some good breaks with $$ and expect to open my real account in mid March.
 
My paper trades are doing good.

COST even looks like its worth adding to the position at todays closing prices.
 
lundy, welcome back :)

just curious, on your other site you mention that you lost $2M (!) How in the world did you do that? In one incident? or over a period of time? If its ok with you, would you consider telling us the story?

Perhaps we can all learn something (and maybe you can also gain some further insight as well). Cheers
 
Save $500 per month, and go live after 6 months? So $3k would be enough for your comeback??

Seriously you should save till you got at least 25k. And by that time if your paper trading account is still doing very well, then you will have more confidence to go in.
 
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