Practice Paper trading and work flow

Before you invest any money in trading you should practice how to trade.    What brought these stocks to your attention? Why do you want to buy it and at what price? When do you want to exit the stock and most importantly  how much do you want to lose? Then making money will follow.   Have a plan and write it down. Practice some fundamental techniques 1st before investing. Remember you can not lose money if your not invested in the market.  The markets will always be there you don’t have to trade today. Practice  the vocational craft of trading.   As for last week results it’s a good thing I don’t have real money in the markets.  

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Today’s possible  trade I predict  they will increase in value 

Cme 119.19 buy 120 call April contract $200.00, there is indecision  and the technical indicators are over sold

DE 109.53 buy April call 110 at $1.55

PPL 37.64. Technicals say it will go down possible  reversal but the up tend looks good wait for another day or two days for confirmation,I’m guessing it will go up maybe a April call 38 at .50

LECO 85.47  technicals looks good o, indecision 

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Results of the picks

HRB 24.26 no real change in price went as high as 24.50

BKE 18.90 put@.50 went as high as 19.20but I bet in the wrong direction it never went down but technical say other wish

NBR 13.95 put 13 April @.48😀 took a lose did not get out in time but went as low as 12.80 next day

GWR 68.74 😐April  70 call 1.50,took a loss. Dojo  had indecision wait for confirmation then invest in that direction like going short broke the moving average  in two days

PEI 15.07 call April took a loss but really going down trend as predicted 

NKE 57.60😀April call 74 went as high as 58.01

Lesson is to make the trade then get out in 1-2days have a stop order. Take the small profit .options move fast have protective stops

On a positive note I did pick investment  that did move in a direction and they move a lot more than .30

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My picks this week

HRB 24.07 looking at April call at 25 strike .45

BKE 18.48 Looking at going short 17.50 strike puts around .60-.75

NBR 13.41 Looking at going short strike 13 put april at .62

GWR 70.13 lots of indecision call strike April 70 at 2.75

PEI 14.76 next few days it will go up, then it goes below 14.00 in the long run

NKE 56.67 looking at call strike April 60 around .58 

Let’s see what happens in the next few days

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Can exercising make you a better stock trader?

I believe any form of exercising can make you a much better person.  Exercising gives you the opportunity to release your stress in your daily life.  I like to look at it as the alone time every person needs, like the a zen moment or prayer time something to clear the mind and refocus on whats really important in your life because there is so much noise in the world you can be pulled in all directions and not accomplish anything.  As a stock trader exercising should be part of a daily routine before placing a trade.

In the markets there is a lot of information noise that can overwhelm a person like the news, CNBC,Wall St Journal,uptrends, tech stocks,mergers etc…However when you exercise your head would be clear and focused and you will not make emotional decisions on an investment.  Instead your decision will be made with good business sense.  Like the saying goes “You have to have a strong stomach to trade the markets.”  If you follow any person who is at the top  of their profession they are following some kind of daily exercise program that works for them.  I wonder what exercise YOU  do ?

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Invest in Mastercard get a roller coaster ride

I was looking for some kind of business in the financial markets that makes a lot of money. Then it hit me it was in my hand the whole time,a credit card.  I use my MasterCard all the time for basic purchases from gas stations to restaurants.  They charge interest rates so high if you don’t stay on top of if you will be in dept with them your whole life.  This creates a repeat customer and repeat customers is good for businesses.  However I consider them the legal loan sharks.  But as a investor their interest rate is the profits.

Thinking like a stock trader, I was looking at the technical charts it is a solid uptrend a few dips here and there but still going up towards the top right. This is where the roller coaster ride begins for me on the March 27th.   I included this chart.  Notice the home made arrows

 

MasterCard daily Chart

Arrows show the roller coaster ride up and down of MasterCard

 

So I got excited watching the price go down thinking its a bargain but not to get in early waiting for it to break resistance anything higher than $427.  I get in on the 27TH the price goes down a little no big deal yet, no major news.  The next day goes down a lot cause of bad news.  There was a security breach with MasterCard.  Hackers broke into one of MasterCard vendors.   The roller coaster ride of loosing your money sucks,but I do not want to get off this ride yet.  The next day the Government releases a report consumers are spending a lot, then  price goes up for next two days and I’m smiling.  But then ride changes directions again.  The Government does not want to spend any money on the economy all stocks go down that day.  Now the Associated Press says all credit card company has closed higher.  I just want to get off the ride before my option expires this month with some profits. I can only wonder if I will be happy or sad Monday 9th.

 

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Day trade a double edge sword

I am not a day trader but it is nice to have that option to trade like a day trader.  So about three weeks ago February 15 I set out a simple plan to attempt my first day trade, I wanted to see if I can do it.  I was looking at Netflix NFLX and was looking at the options and saw a call option 130 at the time it was priced at $60.  I did not want to buy it feeling it was priced at full retail. Like any other consumer your looking for a items to go on sale. I would settle for a price at $50.  If i got at that price I would immediately sell it at $85.  This is a day trade plan.  I do not want to be greedy so I’m willing to take a small profit for a short amount of time. If you have broker they should be able to set up at Conditional Order:

Definition of ‘Conditional Order’

A type of order that will be submitted or canceled if set criteria are met, which are defined by the trader/investor entering the order. This allows for a greater customization of the order to meet the specific needs of the investor.

So I put a conditional order the night before and went to sleep.  I do not want to watch the market every second at the opening bell.  How ever the next morning my order was executed and finished.  The marked moved so fast my orders were bought and sold ,at five call contracts @50 each 5*50=250 bought $250and sold 5*85=425. 425-250=175.  175-30commision=$145.  I started my day out with a $145 smile on my face.  I started out with a plan and it worked maybe i got lucky who knows. But this is the stock market, If the market changes direction then I could have easily lost the money.  Losing money at the end of day is not a good thing.

My question is whats your day trading plan?

 

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