I find day trading to be a very promising strategy of making quick money no matter what stock market conditions are at any given time. The basic concept is to buy large amount of shares for same company, follow the stock price fluctuations very closely, and sell after a small jump in share prices within a few minutes or hours. The idea is that stock prices will follow a sinusoidal trend when they go up or down. Thus, if one picks correct entry and exit points, one can make money under any circumstances.
I tried day trading for a few weeks in the past and I made good money with 90% success rate. However, I was purely experimenting and I ended up paying huge chunks of my profit to brokerage company as commission fee ($7 per trade). Any serious day trader should use dedicated software and broker companies to prevent their wins get decimated by broker firms. My conclusion was day trading is not for people with full-time jobs since it impacts your daily work and productivity. However, serious day traders can make a good living. All you need is time, a fast computer and steel nerves. What you do not need is full time job.
Sunday, November 8, 2009
Saturday, November 7, 2009
GE Big Winner, Two Upgrades
GE was upgraded by two analysts today with price target $18 per share. However, I sold GE based on 3% Return Strategy which teaches me not to be greedy, we will see. I think GE still has lots of room to go higher, stock price is still around it's 50 day moving average. But again, I just sticked to the strategy.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
06 November 2009 Transactions:
06 November 2009 Positions:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
06 November 2009 Transactions:
- SOLD 200 SHARES OF GE AT $15.10
- Commission $7
- Commission $7
06 November 2009 Positions:
160 SHARES OF INTC
Account Balance:
Starting Account: $10,000
Current Account Value: $10,515
Net Gain: $515 ... 10 days
Account Balance:
Starting Account: $10,000
Current Account Value: $10,515
Net Gain: $515 ... 10 days
Intel Is Buy
Dow Jones up 200 points, very bullish activity, even though there was very little economic data to support the price action. Today, I sold TJX and bought INTC. I will change 3% strategy next week. I will hold on little longer to increase return on investment and I believe INTEL has more upside potential.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
05 November 2009 Transactions:
05 November 2009 Positions:
200 SHARES OF GE
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
05 November 2009 Transactions:
- SOLD 80 SHARES OF TJX AT $38.80
- BOUGHT 160 SHARES OF INTC AT $18.80
- Commission $14
- Commission $14
05 November 2009 Positions:
200 SHARES OF GE
160 SHARES OF INTC
Account Balance:
Starting Account: $10,000
Current Account Value: $10,382
Net Gain: $382 ... 9 days
Account Balance:
Starting Account: $10,000
Current Account Value: $10,382
Net Gain: $382 ... 9 days
Wednesday, November 4, 2009
Stocks Gave Up Gains in Last Hour
I think the stock market will pull back little bit more, so I was not out looking to buy stocks today. I considered to short Gold or long Dollar but did not have time to do homework during the day to pull the trigger. After hours, Cisco earnings was very bullish. I will consider to buy Cisco or Intel tomorrow.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
04 November 2009 Transactions:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
04 November 2009 Transactions:
N/A
04 November 2009 Positions:
80 SHARES OF TJX
200 SHARES OF GE
Account Balance:
Starting Account: $10,000
Current Account Value: $10,293
Net Gain: $293 ... 8 days
04 November 2009 Positions:
80 SHARES OF TJX
200 SHARES OF GE
Account Balance:
Starting Account: $10,000
Current Account Value: $10,293
Net Gain: $293 ... 8 days
Tuesday, November 3, 2009
Arena Resources: Dark Horse
Today's big news was Warren Buffet's purchase of Burlington Northern, which lifted both Industrial and Energy stocks. I bought Arena Resources Inc. (ARD) shares on the news and it was a great call with ARD up 5% for today. Actually, Arena Resources is my dark horse and I am planning to buy-and-hold it's shares once we switch strategy next week.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
03 November 2009 Transactions:
- BOUGHT 80 SHARES OF ARD AT $38.10
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
03 November 2009 Transactions:
- BOUGHT 80 SHARES OF ARD AT $38.10
- SOLD 80 SHARES OF ARD AT $39.24
- Commission $14
03 November 2009 Positions:
80 SHARES OF TJX
200 SHARES OF GE
Account Balance:
Starting Account: $10,000
Current Account Value: $10,332
Net Gain: $332 ... 7 days
- Commission $14
03 November 2009 Positions:
80 SHARES OF TJX
200 SHARES OF GE
Account Balance:
Starting Account: $10,000
Current Account Value: $10,332
Net Gain: $332 ... 7 days
Monday, November 2, 2009
Back to Basics: Buy GE
Our strategy today was to buy GE or SRS based on pre-market futures data this morning. We end up buying GE on positive data. It was an up and down day but we ended day in positive return. I think 3% return has been working well for me, however, high comission rate and ROI is not satisfactory. Moreover, with market volatility it almost feels like day trading. I work full time and I do not think day trading is good for my work.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
02 November 2009 Transactions:
- BOUGHT 200 SHARES OF GE AT $14.40
- Commission $7
02 November 2009 Positions:
80 SHARES OF TJX
200 SHARES OF GE
Account Balance:
Starting Account: $10,000
Current Account Value: $10,274
Net Gain: $274 ... 6 days
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
02 November 2009 Transactions:
- BOUGHT 200 SHARES OF GE AT $14.40
- Commission $7
02 November 2009 Positions:
80 SHARES OF TJX
200 SHARES OF GE
Account Balance:
Starting Account: $10,000
Current Account Value: $10,274
Net Gain: $274 ... 6 days
Sunday, November 1, 2009
Double Dip Scare
Not a good day. Dow Jones up 200 points one day and down 200 points next day. There is too much uncertainty and I think Stock Market went a little ahead of itself. I made some money using SRS today. However, I really do not have a good sense for market direction at the moment. Next week's price action will be big. I am also considering to change the strategy next week.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
30 October 2009 Transactions:
- BOUGHT 300 SHARES OF SRS AT $10.20
- SOLD 300 SHARES OF SRS AT $10.50
- Commission $14
30 October 2009 Positions:
80 SHARES OF TJX
Account Balance:
Starting Account: $10,000
Current Account Value: $10,189
Net Gain: $189
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
30 October 2009 Transactions:
- BOUGHT 300 SHARES OF SRS AT $10.20
- SOLD 300 SHARES OF SRS AT $10.50
- Commission $14
30 October 2009 Positions:
80 SHARES OF TJX
Account Balance:
Starting Account: $10,000
Current Account Value: $10,189
Net Gain: $189
Thursday, October 29, 2009
What's Not To Like About GE
Today's GDP earnings fueled an amazing rally on Wall Street. I am not sold on this GDP number. After listening Fast Money last night, I did some work and decided to pick TJX Companies (TJX). TJX was close to it's 50 day moving average. Our strategy is to buy at 50 day moving average and sell after 3% jump. I also have been checking General Electric (GE) and I think it is a good buy here.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
29 October 2009 Transactions:
- BOUGHT 80 SHARES OF TJX AT $37.75
- BOUGHT 200 SHARES OF GE AT $14.51
- SOLD 200 SHARES OF GE AT $14.95
- Commission $21
29 October 2009 Positions:
80 SHARES OF TJX
Account Balance:
Starting Account: $10,000
Current Account Value: $10,202
Net Gain: $202
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
29 October 2009 Transactions:
- BOUGHT 80 SHARES OF TJX AT $37.75
- BOUGHT 200 SHARES OF GE AT $14.51
- SOLD 200 SHARES OF GE AT $14.95
- Commission $21
29 October 2009 Positions:
80 SHARES OF TJX
Account Balance:
Starting Account: $10,000
Current Account Value: $10,202
Net Gain: $202
Not A Good Day For Investors
I did not like the price action yesterday. It felt like markets will be going down, however not sure what % will be pull back. Decided to stay away from Stock market today. It was a good decision, stocks tumbled and break key resistance level at S&P. I doubted whether or not to buy GE here at weakness but I think markets will further go down.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
28 October 2009 Transactions:
N/A
28 October 2009 Positions:
N/A
Account Balance:
Starting Account: $10,000
Current Account Value: $10,078
Net Gain: $78
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
28 October 2009 Transactions:
N/A
28 October 2009 Positions:
N/A
Account Balance:
Starting Account: $10,000
Current Account Value: $10,078
Net Gain: $78
Lorilland Pays Back
Yesterday, I bought LO after a disappointing earning report. I felt pretty comfortable about a bounce in the stock price. However, the overall stock market looked shaky all day today. In the end the strategy worked and 3% return on 2 days is not bad at all.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
27 October 2009 Transactions:
- SOLD 40 SHARES OF LO AT $77.71
- Commission $7
27 October 2009 Positions:
N/A
Account Balance:
Starting Account: $10,000
Current Account Value: $10,078
Net Gain: $78
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
27 October 2009 Transactions:
- SOLD 40 SHARES OF LO AT $77.71
- Commission $7
27 October 2009 Positions:
N/A
Account Balance:
Starting Account: $10,000
Current Account Value: $10,078
Net Gain: $78
Lorillard 3Q Profit Surprise
This week, 3% return strategy is being tested at My Stock Lab. Lorillard (LO) looked like a good pick today after doing some online research over the weekend. I decided to wait for earnings report and buy it after good earnings report and sell after 3% jump. Wow, Lorilland's earnings was a surprise to downsize. However, I think stock got penalized too much, so I ended up buying on weakness.
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
26 October 2009 Transactions:
- BOUGHT 40 SHARES OF LO AT $75.40
- Commission $7
26 October 2009 Positions:
40 SHARES OF LO
Account Balance:
Starting Account: $10,000
Current Account Value: $9946
Net Loss: ($54)
3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop
26 October 2009 Transactions:
- BOUGHT 40 SHARES OF LO AT $75.40
- Commission $7
26 October 2009 Positions:
40 SHARES OF LO
Account Balance:
Starting Account: $10,000
Current Account Value: $9946
Net Loss: ($54)
What is My Stock Lab?
I have been in and out of stock market for past five years. I tried different investment strategies and overall I have positive return on my investments. During a recent review of my stock market portfolio, I had an a-ha moment. I noticed that I made more money during the great recession of 2008-2009 when stock market tanked compared to great recovery that happened since March 2009. It did not make sense at all. I noticed that I mostly lost money when I let my emotions impact my decisions and when I got too greedy. I decided to try different stock market strategies with minimum human decision and record here what works best.
I set my starting account balance to $10,000. My goal is to try different investment strategies and report out the results. I am expecting to make money, of course, but it is also important to test, observe and report my stock market experiments. The goal is to tweak my initial strategy based on learnings, always follow the rules, and to find the ultimate investment strategy for me. I am very much interested in new investment strategies or ideas to try. Please let me know if you have a good one:) Welcome to My Stock Market Lab.
I set my starting account balance to $10,000. My goal is to try different investment strategies and report out the results. I am expecting to make money, of course, but it is also important to test, observe and report my stock market experiments. The goal is to tweak my initial strategy based on learnings, always follow the rules, and to find the ultimate investment strategy for me. I am very much interested in new investment strategies or ideas to try. Please let me know if you have a good one:) Welcome to My Stock Market Lab.
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