Trading

So, I trade a little on line now. Not day trading, more what they call swing trading. I own the stock for a day or a week or a couple of weeks. If I sell it within a day it is usually because it hits the stop I've set. A stop, for those like me up until a month ago didn't know, is a set price that you allow your stock to fall to before you sell it. It's a way to protect your portfolio from disasters. You can re-buy the stock right away but it makes you think if you really want to do so. I set my stops at approximately 4% of the original price. There is a more complicated way to set a stop price that is dependent on what you're risking but like I said it is complicated.

The goal of my strategy is to have my winners give me a 10%-15% gain and my losers are limited to 4%. Therefore if I can be right half the time, I'll have a pretty good return. I was up about 15% in Jan/ Feb and I made a lot of mistakes. I sold a bunch of stuff too early. I bought a bunch of stuff that I shouldn't have, like in times of distribution instead of during times of accumulation. But, the great thing about making mistakes is that you learn from them and then hopefully will make money next time.

My March was really good, but I had some bad days/ trades. I am currently up 5-6%, but I've started investing more money into my program so I am up more money in hard dollars. In my next post I'll explain my strategy in more detail.

LMK