I must admit that day trading has given me a new pep in my step. But, sadly, a little less change in my pocket.
I decided to use my new Candlestick graph knowledge on a few selections today. Makes me realize I need to watch more than one youtube video about Candlesticks.
Yesterday, I decided to purchase 2 IPO stocks because it is my experience that IPOs zoom up before they settle back down. That is precisely what my 2 IPO stocks did. Sigh....I held. It was just too hard to sell, and it was before I had any knowledge of candlesticks so I couldn't interpret the data. I could have sold yesterday for a 15% gain....
...Instead today I sold for a 10% loss. Yuck!
I then decided to try my hand at purchasing a big mover and see if I can capitalize on the movement and get some of my loss back. Once again, I did get a reasonable 5% gain but didn't exit until the stock had moved down 26.7%...yikes! (It was only a $5 stock.) This time the candlesticks lit my way, but I ignored them thinking it was going to reverse.
I'm still waiting on what my final loss will be as I have one more stock that I decided to sell at close because I can't look at anymore charts today.
I should end up the day with an overall $10 loss and a very bad start to this experiment.
Today I learned:
1-Candlestick charts really do show you the way as long as you follow them
2-To day trade, you have to move in and out fast. You are looking for small wins that add up.
3-I need to focus on just one stock to start and stop looking at others. One stock, one buy/sell, and out.
4-Day trading is bad for getting steps. It's almost 3pm, and I only have 2,000 steps.
Time for a walk!!
I do have a plan for Monday. Based on some additional youtube videos I watched, it is a very popular strategy to purchase stocks based on their premarket gap. I found a free screener on Marketwatch.com that will show me the largest gaps. Then, you put an order in for open and sell usually within 5-10 minutes when you get a 5-10% gain. Fingers crossed it works!
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