KGTrader4 Paper Trading Journal - My Training Wheels

[KGTrader4]

I’ve gotten most of the ideas here (maybe all) by reading IBD. When I find an idea, I look at the charts, and focus on pattern, along with above or below the 9 and 20 day EMA. Sometimes ill also look at a 1 minute intraday chart, before entering to decide on a good entry price.

I look for tight bases, Cup with handles, preferably declining handles on lighter volume. Sometimes ill find triangle patterns and look for breakouts.
I scan the daily all time highs list.

that’s my methodology, for now.

 

[SimpleMeLike]

The money is of secondary importance.

What you REALLY need... is to "learn to trade well". Once you get a handle on that, you can trade bigger and bigger. Sky's the limit... but ONLY if you trade well.

Hello Mr. Scataphagos,

You are absolutely 1000% correct. "Sky's the limit... but ONLY if you trade well." I need to hang this quote up somewhere.

My goodness, my goodness, my goodness that is so true. Trading well is something I'm still working on, and it really is a trade well every Single trade business.

 

[KGTrader4]

Bought 50 NVDA.
1. Above the 10 day, 20 day and 50 day MA
2. 20 DAY just crossed above the 50 day
3. looks like its been consolidating gains the last two days.

Stop in at $256, max loss just 1.8%% of capital (i'm sizing trades to assume $50k capital as i would in real trading.)

 

[deaddog]

Bought 50 NVDA.
1. Above the 10 day, 20 day and 50 day MA
2. 20 DAY just crossed above the 50 day
3. looks like its been consolidating gains the last two days.

Stop in at $256, max loss just 1.8%% of capital (i'm sizing trades to assume $50k capital as i would in real trading.)

What was your price and where is your initial target?

 

[KGTrader4]

What was your price and where is your initial target?

Buy price $274.87.
I know i should have a target, but i dont, i think there is a fair amount of upside, even to old highs, with some minor resistance along the way (dont have chart open).
I like to keep flexible on the sell side on the way up.

 

[GrowleyMonster]

Most guys here like to have a target picked out, just because it is good to have a good ratio of loss to potential profit. You don't have to sell there, but it is good to figure out how much gain you can reasonably expect. You can scale out, after selling say 25% of your shares at target. Or set a trailing stop under them, or two trailing stops, with one lower and one higher. You are right to be ready to accept bigger gains if your stock keeps going up, but having a target doesn't stop you from doing that.

 

[KGTrader4]

Good point thanks li know my target gain is more than twice my potential loss at the stop

 

[deaddog]

Buy price $274.87.
I know i should have a target, but i dont, i think there is a fair amount of upside, even to old highs, with some minor resistance along the way (dont have chart open).
I like to keep flexible on the sell side on the way up.

Well if you don't have a plan no one can accuse you of not following it.

Can you rationalize why you want to be flexible on the way up? You don't seem to have the same flexibility on the way down.

I don't have a problem with flexible so much as with lack of process. I'd suggest that you note the emotions that lead you to sell for each trade. Write them down so you can refer back to them when you review your trades. (I review each month and again each quarter)

I try and make it a rule that I can't sell without a reason. What ever that reason might be. If the reason begins with "I was afraid ....." then I have to find a process to overcome that fear.

 

[KGTrader4]

I don’t want flexibility on the way down. Seems to me, that’s where emotions can hurt you more. If I set a stop, limiting my losses, and moved the stop up, as the stock goes higher, I’m protecting downside (and profits).on the upside I want to let profits run.

im looking at this trade (and others) , as more than day trades, or whatever labels we use. Thinking couple weeks to couple months holding period.

if I had to call a target, I’d say $345, with maybe partial sells on the way up, like maybe at $300.

 

[deaddog]

I don’t want flexibility on the way down. Seems to me, that’s where emotions can hurt you more. If I set a stop, limiting my losses, and moved the stop up, as the stock goes higher, I’m protecting downside (and profits).on the upside I want to let profits run.

By flexibility on the way down I mean taking a smaller loss than you had planned on. Just like you are willing to take a smaller profit. Again it's about having a process. When I enter a position I have certain expectations. If the stock doesn't behave as I expect I'll get out.