Taking $5K to 25K by the end of the year

J

jazzsax

Yes, this journal will probably be more boring than NEKE's, as obviously I'm not implying a huge homerun strategy, but then again, some of you might figure I am, given the small amount of capital I'll be using.

Last year in a different account with more restrictions (locked in Lira), I took $12.5K to 50K in 5 months, primarily trading Options (80%) and Equities (20%). The strategy in this account will be primarily swing trading of equities, with possibly some options trading (small positions in options nearing expiry, not requiring alot of capital outlay)

As I'm canadian, through a canadian direct access broker, I'm exempt from PDT rules and can trade as much as I wish. (Hurray). My trading this year has been ok in this account, alot of winners, but my losers were usually psychological issues. I'm planning on using this journal to try and minimize the psychological issues and get feedback and encouragement based on how I'm doing. I'm sure I have the same issues others have.

Generally I have not been holding long term, my trades have been same day in larger lot sizes. Often the $100 per day target could easily be met from my first trade, some days were positive huge amounts, my problem has been limiting losses.

My stop loss limit on each trade will be $200. I will let my winners run until my gut (or charts) tell me to exit the trade. I may set moving stops based on these jumps to protect profits, and try and be less emotional.

I am not biased towards long or short. I will let the charts and momentum dictate my entries and exits.

Commissions are around 1c per share (or less). Unfortunately with this account I've had it for a while, don't feel like moving it, I know I can get cheaper but it's nice and convenient for me and I like the platform. There are no monthly platform fees as I currently execute a significant amount of trades to waive any fees in that regard.

Trading will begin on MOnday. I will post daily blotters. If I hit 25K prior to year end, I will remove 20K in excess and start the process again. Obviously this could be done if I follow my plan and don't risk blowouts.

My current watch list based on swings I've been following includes the following:

ETFC, AMD, EMKR, JASO, ABK, CFC, CIT
 
Unfortunately my broker wasn't able to get me on the new platform today, so I've been using the (cumbersome) web interface today. I'll be up on the regular platform tomorrow.

First two trades today:

Closing out a position I held for a few days in EMKR. Was in at $6.61, it fell over the past few days, held back until this morning, sold out at $6.70. Net profit after commissions was $148.

BUY 2000 AMD @ $6.199, SLD @ 6.31, NP $208
 
Trade #3

BUY 2000 EMKR @ $6.60
SLD 2000 EMKR @ $6.74
N/P = $266

Trade #4

BUY 500 BSC @ $12.92
SLD 500 BSC @ $13.35
N/P = $202

BUY 1000 BSC @ $12.93
SLD 1000 BSC @ $13.15
N/P = $206
 
Made some further trades this afternoon after I had hit my "lofty goal", which is usually $1000 per day.

Of course, at that point, I made my usual mistakes, got greedy, traded from emotion. Need to learn to just walk away from the machine when I hit that point and come back the next day.

Gave back alot of the days gains.

I'll be starting tomorrow on the new platform, slightly above 5K. Hopefully I don't repeat the same mistakes again. Done for the day.
 
Canadians are exempt from PDT?

$1000 a day. Must be nice.

Any insight into your strategy?

edit - also how much leverage are you allowed in your $5k account to be able to buy $12k positions? Obviously more than 2:1.
 
Quote from IronFist:

Canadians are exempt from PDT?

$1000 a day. Must be nice.

Any insight into your strategy?

edit - also how much leverage are you allowed in your $5k account to be able to buy $12k positions? Obviously more than 2:1.
More...

Depends on your broker. If you're with IB, no. Most of the others don't enforce it (ie, Questrade, the bank brokerages, etc). They just hit you with the canadian leverage rules. Depending on the stock, there's a 30% margin requirement. I'm with one of the big bank brokers solely for convenience (i can pull funds in and out same day). Some stocks have a 50% margin requirement, others even higher. Depends on price.

As for my strategy, I have a reduced watch list (about 10 stock) and a bigger list (of about 50) i watch every day. Most trade within a flexible range everyday. I try and follow momentum mostly. No bias towards short or long.

I don't scalp for pennies. You won't see me churn a couple hundred thousand shares for $1K or so like you'll see some of the "prop" folks do.

I've had numerous $1K (or more) days when I've followed my rules. I don't seem to have a problem taking profit, it's the whole letting go of losers that has been my downfall. i always seem to think "it will come back".

This account is mostly risk, but i'd like to turn it into funds that I can regularly remove to pay for daily expenses.

I also forgot to mention, I do work full time, in a job that permits me to watch the markets a certain amount of time per day. I don't intend to leave to trade full time, though if the opportunity permits later on, I may consider that *part time* only. I do like my job.
 
This account is mostly risk, but i'd like to turn it into funds that I can regularly remove to pay for daily expenses.
More...

Probably wasn't clear on this. This is an account with funds that I'm not "worried" about losing. My other accounts are more long tern buy/hold. This accounts aim is to generate profits to remove and use personally. I don't plan on increasing leverage and scaling up if I make some massive returns. I'm perfectly happy with the amount of risk I'm currently taking.
 
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