Finally found a mountain to start my fastlane journey, Stocks

[c_morris]

There is a long (buyer) and a short (seller) on every trade.

This is incorrect. If I sell stock that I own, I am not short. I'm closing my position or liquidating a portion of it. Also, if I am short, I buy to close and will not be long.

 

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[Soulrize]

I start this thread because after years of on and off commitment to investing in the stock market through day trades I have come to the realization I will use this method In order to start my journey. My experience in the market is very long (8 yrs + on and off) and with the advent of Robinhood(stock trading platform for smartphones) where there is no commissions and has pattern day trader alerts so I don't get flagged . This has been my problems for YEARS. With these main problems off my shoulders, I've been recently focused on just making money . I'll post my own capital amount and the % currently gained on it. I believe everyone has their aptitudes and it's no doubt for me that I see a good start off the ground through the markets.

Current goal : capital gains of 300% on the money I invested for myself by this time next year 02/11/2016

Current status: Invested $2,000 %earned:25%

Disclaimer: I have a lot of philosophies and they have worked for me as I etched them in my soul from my very own experience and not from any other books and what not. Other words there not "conventional".

Problems I've had faced in the past:
* was mismanaging money (spending every dollar earned) and starting from scratch for the 4th time.
*trying the manage other people's money, however, there was a conflict of interest as the lines were not clearly drawn out on how profits were to be split or how losses would be handled.
*Day trade calls and preventing becoming a "pattern day trader" which prevents me from buying and selling a stock on the same day which for me is a huge loss of control as I live hours at a time and prevents a lot of losses from occurring.
*being entrusted with capital from family only to let my opportunity to be squandered by spending it all selfishly on whatever desire I had in the moment.

Current solutions this time:
*Keep me accountable through this thread and just letting the outside world(person and the internet) know what's going on with my balance.
*I decided I'm not mature enough to handle other people's monies for them because I myself am learning to be professional with my own money however I will take in zero to very low-interest loans from friends and family to increase the $ rate of return on my account as I consider it my own money and I really do take care of my own money more than I believe anyone else would . It also keeps nonsense to a minimal as I just focus on the stocks I choose and no emotions, feelings, worries, or any other communications that are required when handling monies of others.
*Robinhood the app has in itself removed this by having a prevention and lots of notifications .
*So since my reputation within my family is I mismanage money (very different from losing money) is that I'm a high risk to give money to. In this regard, I pled and just wouldn't give in because I believe in myself this time around I will not stop until I meet my own goals one year at a time. I'll give my login and whatever it takes to get a loan and with careful and a lot of heart I got a loan of $1,000, sure its not the max I can borrow which is 6k but ITS BETTER THAN 0! And forward looking as I am If I can prove myself for at least 6-9 months that I am responsible and profitable that I can afford to have a greater loan given to me to be used as capital in the future.

So with this I'm glad to finally be apart of the EXECUTION TREAD ! and hope yall all keep tabs and supportive motivation throughout this long journey (years seem like a lifetime to me)

If I face problems that deal with money management ( I KNOW I WILL) I will ask this forum so please stick with me to help as I really appreciate everyone who contributes to this forum and has worked hard to learn their own fair share of knowledge .

 

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[Soulrize]

Correct me if I'm wrong:
- You have no money, no money management skills, have a reputation of money waster and want to manage someone else's money?
I'm not going to make it sound, but we both know how it's gonna be.

btw, on your photo you stand in front of a car you cannot afford, which says a lot to me personally.
Sidewalkers never change.

I put under the solutions that I don't want to manage other people money but would rather make my own though my own money as it keeps me in control and focused.

The photo is an image, and say what you will people will judge you on your image. If you ask about it I'm not gonna lie its not my car, I have nothing to gain but what's the hurt in a nice photo?

 

[Soulrize]

Let's run through the math:

You start with $2,000.

And claim to get a 25% return.

Therefore, in 20 years, you will have a whopping: 2000*1.25^20 =

$173,472.348!!!

Or $8,673.62 per year!!

Not to knock you down a peg, but you're not going to get close to 25% returns. If you believe that, then you shouldn't pursue stocks altogether. And if you can get 25% returns, then you should start by creating a greater investment base. $2,000 will get you nowhere.

There is the assumption of a yearly rate of return when the 25% i'm talking about was made in 2 weeks. I'm not saying that's not uncommon to me but the long term it averages out probably. and I am obtaining more capital in the future, in the meantime I focus on what I can do which is building my reputation through results.

@devine Its true I had a history of talking the talk without walking the walk(picture is 2 years old) and at this point in my life I'd rather be successful in reality than in image because there our other desires I need capital (my own preferably) to start other business. This is just a mean to build capital and not a mean to an end.

 

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[Soulrize]

End of the week update.
Investment capital still 2000, Earned amount is now at 24%.

For the first time I wrote down my cardinal rules for trading as my losses were from poor risk management along with just flat out speculation.
I have a visual now for these simple rules I won't break. I will follow them for all future trades to come .

 

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[fhs8]

End of the week update.
Investment capital still 2000, Earned amount is now at 24%.

For the first time I wrote down my cardinal rules for trading as my losses were from poor risk management along with just flat out speculation.
I have a visual now for these simple rules I won't break. I will follow them for all future trades to come .

How much are you paying per trade? If it's $7.00 for example it's $14.00 round trip which is 0.7% of your account. Your trading loses were from randomness and math not poor risk management.

 

[Perrots]

If becoming rich off the stock market were easy everyone would do it. Now nothing is impossible, maybe start by reading some books, educating yourself on the market, if you want to dabble, dont dabble with all the money you have. Good luck, In for updates.

 

[Soulrize]

Oh boy here we go, another 20-something's gonna crash-and-burn because he got lucky making 25% in a few weeks.

He thought the same thing:
https://www.thefastlaneforum.com/co...ading-5k-how-to-lose-most-of-your-cash.59988/

As did a few others here who mysteriously disappeared along with their bankroll.

BTW, my very FIRST trade in the market (I think I was 22) made me like 30% in just a few short days.

I got hooked. Thought I was going to turn into the next Gekko and get rich.

In a few short months, I lost most of my bankroll. The bottomline I got lucky and translated randomness into "I know what I'm doing."

Not to be superstitious, but the market loves newbies -- and there's a reason why virgin traders always seem to make a few bucks when they first start.

Don't be fooled -- you're being gamed.

But by all means, please continue to update this thread and share your war stories -- I just hope you update us with the BAD as well as the GOOD.

Thank you for the realism because being the optimist I do want to leave out the BAD haha. Well, the bad this weeks is in two parts that in that my % profit came down to 11% on Tuesday along with being marked a Pattern day trader . The good is that I secured a friendly loan of 2,000 at 25 dollars interest per month to be paid back in the end of may 2017. The bad is that I'm lending my total principal balance that is now 4,000 to my best friend because he's trying to hold onto ownership of his app until he can sell his house within a few months. So as of now execution is on hold and I'll be focusing on selling my extra car among other things to collect capital.

 

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[Soulrize]

its been a long update and as I've been jumping around business ideas, I began to understand that without a commitment to any business it is not profitable (but I did learn a lot researching) while I'm in college on my way to finish up my last year(may 2018). I've been fighting it with one hand behind however here's an update on stocks, Began journaling a month back, Been sticking to it everyday along with researching whether I have capital available to invest or not, Tested options and lost a good chunk of my account due to low liquidity (and no knowing what i was doing at first) and learned its not the avenue I'm looking for unless I'm looking to buy larger market cap stocks where most of the liquidity is located. Along with this, I've added discipline, and while I can't say its super exciting, I been pretty consistent so far breaking even. Also been disciplined to start putting my extra income from work into it (about 40%) of it and not going out. Its been a win win since drinking affects my research and decision making and I been far better focusing on stocks.

 

[Soulrize]

Frist I'd like to say thanks to @jpmartin for the awareness on how to handle the psychological aspect I've struggled with and tried to ignore for a long time
So far ever since I've split my investments into a portion of my portfolio, I've been impartial to my stocks when it went up. And focused on testing to see If swing trading is actually more profitable, I have a % to measure against had I daytrade to my indicators I usually follow.

You've been here for almost three years and you're currently daytrading with 2k in a Robinhood account while working a minimum wage job...

Come on man.

Day trading doesn't work, at least it doesn't with the tools you have available.

However, you have all the tools/knowledge to make a profitable business on this forum (Gold/Notable/INSIDERS).

A few clicks away.

You could probably start making money by the end of the week on Upwork if you really worked hard at it.

@spyt
Its been a long journey to end up with the same end results I had 3 years ago. (same deal 2k ...well no job though ) I'm conflicted about day trading and Its something I have to figure out myself. I know I can make a quick buck at minimal, but I'm not sure if its my ego that says to do a swing trade because I've seen stocks I've sold out go up a significant amount just a few days, I don't want to


I'm not unaware of this forum and all it holds(I read it often) and Its though knowing on the other side of committed execution is gold, however, I seriously plan to integrate myself in another country where I live and sense huge fastlane opportunity and I'm putting in time every single day learning to read and write another language with purpose because It will be my barrier of entry for doing business there with natives(at minimal read a job contract). I've seen may foreigners try to do own a business their but they end up dealing with tourist and expats(along with giving up learning the native language) leading to a lack of repeat customer and after a few years close up shop and return to their home country. I have no intention of leaving that country and will make sure the next time I go, I stay.

Main points:
Committed to:
* learning to read/write a language
*Improve strategy/mindset towards stock
*Saving money/Paying off debt before I leave.

PS: I have to finish college(Last yr) and with the recent semester I changed from trying to shortcut and search from answer online to reading the textbook, comprehending, then doing assingments without help. The former was quick and made mediocre grades while the latter is VERY time consuming however since the first chapter I "tested" to compare the difference, I've never returned and realised how much information I've missed in my whole college life. As for my grades..... there MARGINALLY better for 3 to 4 times commitment.

 

[Millenial_Kid5K1]

That's incorrect.

If I buy stock at $10, sell it to you for $11, you sell it to the next trader for $12, they sell it to the next trader for $13...etc who's losing? Sure, any of us might take a loss and we all risk taking a loss but saying it's a zero sum game or that for every winner their has to be a loser is just incorrect.

Technically it's a zero sum game where the average return of the market is by definition the average return for all investors in the market.

This is why it makes some sense to use index funds if you're aware of your own limits as a trader. At the very least you'll make the average return of all traders that year(regardless of skill level).

 

[Soulrize]

Today I connected a dot on a loss. It comes down to what I read in unscripted about beliefs. For example, I go into a stock with the belief its going up. I buy, And what I generally do was react TOO quickly ie it goes up a tick, I sell or goes down a tick I sell. Today I realised what I have to have patience on, that's waiting for actionable knowledge. It comes out with time as the stock heads up in one direction or another. Today I did other activities besides stare at my screen, with an occasional glance every so often. Then thirty minutes passed easily and I saw what I bought wasn't moving towards the direction I believed so I sold out. I realised staring at my P/L or stocks every second makes me too anxious. This gives me a sense of control keeping me level headed while keeping it simple, once my belief is validated after more time, I will ride the wave longer or get out if it doesn't.

 

[Soulrize]

Yesterday I had my first break, probably due to some pressure from MJ; I feared he was making a point. I been keeping up my journal, marking mistakes, locating stuff to work on and all of it as lead to yesterday where I made 2k or 50% RoR. I pushed it a little bit further than where I would usually stop, and I know that its in part due to fear of loosing what was unrealized gains. So I let it ride just a few minutes longer, and those few minutes made all the difference. It gave me some confidence and let me be even more objective as I trade. It was tough mentally and I still have a ways to go and other problems came up such as after the trade, I was more fearful to trade because of fear of loss of what I made. Something that as I self analyze, will come to a solution to .

 

[Joe Cassandra]

The only 'very few' people I know still "day trading" only do so in options. Day trading stocks is too hard now with how much computers have advanced and trade at milliseconds.

Start with weekly options. The trading volume is at its highest ever meaning there's most likely a higher volume of suckers with their money in.

Sounds like you're betting it all with each trade. Why not go for broke and trade the cryptos?

 

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[bringitnow28329]

That's incorrect.

If I buy stock at $10, sell it to you for $11, you sell it to the next trader for $12, they sell it to the next trader for $13...etc who's losing? Sure, any of us might take a loss and we all risk taking a loss but saying it's a zero sum game or that for every winner their has to be a loser is just incorrect.

You obviously don't understand how the financial market works. There is a long (buyer) and a short (seller) on every trade. Money doesn't come out of thin air. If I want to make money outside of holding long term and collecting dividends in stocks, (and even then the price of a stock will drop by the proportionate amount that gets paid out as a dividend to shareholders of record), then I have to take the next guys money buy better the right direction against the other guy.

 

[Soulrize]

The only 'very few' people I know still "day trading" only do so in options. Day trading stocks is too hard now with how much computers have advanced and trade at milliseconds.

Start with weekly options. The trading volume is at its highest ever meaning there's most likely a higher volume of suckers with their money in.

Sounds like you're betting it all with each trade. Why not go for broke and trade the cryptos?

Always hated the lack of picks available with high volume in options, couldn't pick what I needed so that's why I don't do that. yeah I mean I've never had a big problem betting big positions. Not trading crypto because there's a learning curve and to me that's green grass on the other side of the hill.

 

[Soulrize]

It sounds like you are letting emotions dictate your decisions. This is very common and the #1 reason most traders lose. Successful traders develop a formal trading plan with a strict set of rules to follow. They also have the discipline to follow those rules which effectively takes the emotion out of trading. I recommend you read "Trading in the Zone" by Mark Douglas. It's a very good book on the psychology of trading.

Thank you, I believe listening and learning more about the field of trading helped tremendously, starting with podcast "chat with traders" which I believe made an impact, I can't wait to start reading thanks for the recommendation.

 

[tpjay]

I used to trade NADEX back in the day when I was first fed up with my former job I had at the time. Everything was going good and then I got emotional and was trying to show off then lost it all. I was only trading small amounts so one loss can take you out of the game but when I was disciplined I was on. I found Trading to be a blast. Looking at charts and data trends and patterns made me lose track of time. But it takes time. Time you could use to build a business that solves a problem. Trading is high risk because there is no limit to the amount of money you can lose. You seem pretty knowledge. How are your tracking your trades in your trade log and what platform are you using @Soulrize


Sent from my iPhone using Tapatalk

 

[Soulrize]

So I took a vacation for a week just to focus on trading and to say the least it broke me. I decided I won't use stocks as a means to get anywhere. I did learn a thing or two about myself, not good things to learn so late but I had so much time to myself that I didn't know what to do with it. I was a bit disheartened how my self-belief I could trade stocks slowly eroded. I basically lost to trades and commission. For example, if I used Robinhood I would've been profitable but that wasn't the case. I had a talk with my dad, basically, it comes down to that there's nothing easy in life otherwise people wouldn't go to work or school. Along with whatever I do, be the best you can be at it because it will always open doors that were never there for the average crowd who go home and have a beer after work. It helped, I'm really debating my job as a teller and whats else is possible for me to do. climbing up is years until someone passes away (low turnover). I want to do something in production or manufacturing, something challenging.

 

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[Soulrize]

Its funny it wasn't that long ago that i was just relieving everything in this thread more than 4 years ago. My mind took a while to see my situation hasn't changed due to stock market gains and its just too sporadic that I don't give it the attention it needs anymore. My situations has become better. I've worked at one company 3 years ago and in October i finally moved to a better job with a 55% increase in pay. I have become salaried. I have been lurking for a while , here and there, until my drive to start something of my own has increased to post. I can see the beginning of the end of the slowlane.
My parents due to great circumstances has granted me a 50k loan , at a meager interest rate that doesn't have to start being paid back in 2 years. I'd quit my job and just go to cambodia and figure out something of my own but one things holding me back in my mind is College debt. So after my lease is up in march, im going home , focus on repaying 26,700 dollars of loans in a year and be debt free by end of April 2023. After which I either choose to save more , or just go straight away. But this thread for now is just the journey to be debt free. (which i haven't been since the beginning of college a decade ago)