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Trading Stocks The Safe Way

Discussion in 'Investing/Trading/Cryptocurrency/Altcoins' started by Big Z, Apr 7, 2017.

  1. Elif
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    Elif New Contributor

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    Okay, Great!
     
  2. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    YoungPadawan likes this.
  3. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    NBL Stock closed at 34.68.
    Cost Basis is 36.10
    Had the 35 put, which I exercised for a 1.10 loss on this position.
    Another small losing trade, but that is acceptable.
    Will look for another soon.
     
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  4. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Recap of the four trades taken so far.
    Minus 67
    Minus 135
    Plus 105
    Minus 110
    Total Minus 207
    Always protected from a devastating loss to the account. Low Risk trades that have the potential to give a big return. All we need is one good one.
     
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  5. mom
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    mom Contributor

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    Stick to high priced, liquid stocks.
    No pink sheets, pennies, illiquid stocks etc.

    Chose ones with outstanding fundamentals.

    Then there are certain stocks with certain momentum that usually make good % gains in the months ahead...

    Look at stocks like SQ,ETSY,ZEN....nice steady trends. Ignore daily/weekly gyrations etc...

    But i do not think stock investing is fast lane at all....unless you start your own mutual fund or something.
     
  6. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Thanks for the feedback. I appreciate that you took the time to read and contribute Here to this thread. Its been quiet since I have been busy. But I do have a two trades on right now that I plan on showing the details soon.
     
  7. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    I currently have two trades on right now , but for the sake of transparency I am posting a trade from today. Long KR at 58.58 and long 1 Oct 12, 58.50 Put at .72
    Max Risk per 100 shares is .80 or 80.00
    KR reported earnings and got hammered. I think its an over reaction and it should bounce. I have about 29 days to find out. If I'm wrong the most I can lose is 80.00 or 1.4% percent.
     
  8. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Trade Update. 100% return on the risk in one week. Closed out KR today for a 80.00 Profit. I originally had a typo on the prices I put in . The Cost of the stock was 28.58 not 58.58 and the put strike price was 28.50.
    Original Cost was 29.30 (28.58 + .72)
    Sold the Put and the stock for 31.10
    Profit 80.00 per 100 lot position
    Risk was 80
    Return on Risk 80/80 = 100%
    Will Post Next Trade When I have time.
     
    MJ DeMarco likes this.
  9. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    I would like to make a comment on on percentages and money management. This is just my opinion and how I use money management for my portfolio. There is always risk of loss when trading and this is something that needs to be in every persons mind when investing or trading the markets. I do the following:
    1. Risk no more than 2% of my entire portfolio in any one trade. e.g ($30,000.00 x .02 = 600.00)
    2. Never have more than 5 positions on at any one time. This limits the max potential at risk to only 10% of the entire portfolio if you are only risking 2% on any one trade. E.g. 2% x 5 = 10%
    3. Try to risk the same dollar amount per trade. It's not a good idea to risk 2% on one trade 1% on another and 3% on another. Why? because if your 1% risk trades makes 100% return, your portfolio just increased by 1%, and if your 3% risk trades loses 100% then your portfolio loses 3%. You would need 3 of those 1% risk trades to make up for that one. So to keep things even I like to put on the same exact % or $ risk per trade. This way the winning trades will take care of the losing trades.

    For the most part some trades will make over 100% and very few if any trades should lose more than 100%. (Although it could happen as you roll the options to reduce cost basis but it is rare and totally in the traders control). Having said that over the long term (1 year at least) things should work out for a up sloping equity curve.

    I hope this helps.
     
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  10. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    New Trade today.
    HLF
    Buy Stock at 55.19
    Buy Oct 26, 55 Put strike at 1.35
    Total Cost 56.54
    Total Risk per 100 shares is 154.00
     
  11. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Rolled the long put from the 55 strike to the 53.00 strike for a credit of 1.25.
    New Cost Basis is 55.29 , New Risk is 229.00
     
  12. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Rolled the 53 strike put to the 51 strike put for a 1.15 credit.
    New Cost Basis is 54.14. New Risk 314.00
     
  13. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Taking the opportunity to exit this trade at 54.54 and the Put at .09 for a credit of 54.63
    Total Profit .49 or 49 per 100 sharers.
    The timing was bad on this ,but having the put allowed me to lower my cost basis and exit out with a small gain. Instead of panicking out when it was almost 5.00 against me.
     
  14. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Some Stocks I am looking at this week for possible trades.
    1. BAC Short
    2. COP Long
    3. SQ Short
    4. GDDY Short.

    To trade the short side safe, I would short the shares and buy a call option for protection.
    To trade the long side safe, I would buy the shares and buy a put option for protection.

    Z
     
  15. AlessioLC
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    AlessioLC Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    Quick one for Traders here, what are the consequences of a Recession on your day-trading ? (decision making, volatility, patterns..)
     
  16. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    BAC Short at 27.83
    Nov 16, 28 Strike Call at .68
    Effective Short Price 27.15
    Max Risk .85 or 85.00 per 100 Shares
     
  17. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Big gap down on BAC today. Exiting with a 83% return on risk in one day is not a bad thing.
    Sold the call at .33
    Bought the stock back at 26.77
    Profit .71 or $71 per 100 shares
    71/85 = 83%

    Trade Safe
    Z
     
  18. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    WMT
    Long 98.85
    Nov 23 98.50 Put at 2.52
    Risk 2.87
     
  19. Big Z
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    Big Z Contributor Read Millionaire Fastlane Speedway Pass

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    Exiting WMT
    Sold Stock for 103.33
    Sold Option For .91
    Cost Basis 101.37
    Sold For 104.24
    Net Profit 2.87
    Risk was 2.87
    100% return on Risk
    All the while no stress, not glued to the computer. I didn't really have to worry about the election results either. The risk was fixed

    Trade Safe
    Z
     

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