Weekly Recap for week-Sept 24

Life happens, and it sure has for me. However, some important lessons can be taken from this week. Firstly, trading makes you overly confident if you are not careful. I placed way to may risky trades in my $1000 account and I was down to $883, but after two successful trades in a row, I’m up to $894. My investment amounts should never alter until my capital DOUBLES. Period. $5-10 trades only. Secondly, consistency is the key. Whenever I am out of the market, I’ve noticed that it takes a while for my “instinct” to kick in. I need to trade everyday to become profitable. Thirdly, a major mistake is not following strategy. I can trade naked price action; however, I need definitive entry and exit points to stay consistent. This is will especially help me for whenever I trade by pips instead of options.

Going forward, my battle plan for trading is:

  1. Commit my trading strategy to memory
  2. Trade two options a day.
  3. Finish two tasks in Apiary a day

EDIT: http://www.livecharts.co.uk/currency-strength.php

I shall use the currency strength meter as well, and also take advantage of longer term expiry on Porter Finance.com

 

 

Strategy Refinement

I have read Trading In The Zone and I’m 137 pages into Trading With Your Gut. Here is what I have learned:

  • Choose a set of a market variables that define an edge
  • Trade Entry
  • Stop-Loss Exit
  • Time Frame
  • Taking Profits
  • Trading in Sample Sizes
  • Accepting the Risk

 

  1. I am going to focus on the first four for this blog post and for the next week. The market variables that I will use are primarily support and resistance levels used alongside MACD, RSI and Bollinger bands for confirmation.The primary charting tool will be tradingview.com to give me this edge.
  2. The trade entry must be based on trigger behavior. S/R levels along with the overall trend and direction are used here.  Trend can be determined using Weekly and Daily Charts. Then entry is determined based on the Risk Reward Ratio (>2:1)
  3. Stop-Loss Exit is when the trade no longer makes sense and the absolute maximum risk you must take to determine whether or not the trade is worth it. It’s all about speculation and troubleshooting, but after a certain range, the trade is no longer “to-be-determined”. It’s just a bad trade bro.
  4. Time frames must be consistent for entry and exit. So the time frame I most prefer is the hourly for support and resistance entry and 15 minute chart for the details.

The two most important aspects of my trading

Tickers for today: AMWD, BURL, COTV, DXPE, ROCK, TLYS

Information

Strategy

So today I moved forward considerably by adding a new stockpile to my information arsenal. The website I will be using for stock picks is zackpicks.com/premium.

It’s a $5 membership and I will have access to some valuable information:

“The predictive ability of the Zacks #1 rank cannot be denied. An average annual gain of 26% since 1988. Beating the S&P 500 by nearly three times during that period. Earning a 43.8% total return from 2000-2002 when the stock markets suffered record declines.”

 

 

 

 

Strategy going into Sept 11

Lets use the strategies I have to determine the feasibility of these stocks (see previous posts for reference of strategy)

*Restoration Hardware Holdings (RH)

* MGT Capital Investments Inc (MGT)

* Barrick Gold Corp. (ABX)

* Smith & Wesson Holding Corp (SWHC)

* Market Vectors Gold Miners (GDX)

* U.S. Auto Parts Network, Inc. (PRTS)

* Lannett Co. Inc. (LCI) *

Motivations for Trading

I’ve had 7 jobs and started two businesses over the course of my life, and I am only 20 years old. Hustle is in my DNA. My parents were/are hustlers; they both grew up poor and now they are middle class. Working has taught me hustle, school has taught me critical thinking, but now new lessons are in front of me. On top being a good worker, I want to be financially independent. I want to educate others and lead, and trading can be my way to the life I want. There is no shame in working for or under someone else. Not everyone is supposed to be an entrepreneur; even I see that. Working for something you love, I believe, is overrated. Right now, I work an engineering internship. I don’t hate it; its actually quite spectacular to work here, but I don’t love it. Hell, I’m an engineering major, but I don’t love engineering for the sake of engineering. I love working for a common cause; something bigger than yourself. Something meaningful.

Implementing the Stock screen

My best friend right now is FinViz dot com. The key features of this trading site allow me to filter stocks by Relative Strength Index, Volatility, Volume, and Moving Average (among the others).  The site pulls up a spreadsheet, and the two tickers I have traded using my three indicator strategy (RSI, MACD, and Bollinger bands) are HAR (long) and VMAX (short).

Stock Screening

September 1st 2016

Today I focused on trading stocks that have the potential for an uptrend. Using the three indicators:

*MACD Crossover

*MACD Crossover Above 0

*Stock Up

Here, volume doesn’t matter, nor does price. I want to keep things as simple as possible.

My most significant stock (8.02% gain) was CIEN.