InformedTrades http://ift.tt/1E1Sx9T
Hello Traders,
I've posted a few times and received some good feedback. I have just completed my first paper trading month. Again, just using a spreadsheet to track my trades (just got a Think or Swim paper account and love it). Since 2/24/2015 I would have entered and exited 22 trades according to my current plan. My results were less than spectacular... or so I thought. Out of the 22 trades I was stopped out 11 times for a loss. But, due to the information I have been able to acquire from instructional sites such as this, I learned to limit my exposure to loss while maximizing my gains by moving my stops as trades progress. The end result... I would have made roughly $270. However after broker fees that would have dropped down to about $60... holy cow!!! All that work (not really compared to my full time job) for only $60... Now the good news. I was investing only $250 per trade...$250/ trade is nothing compared to what I see most swing traders performing. So just to gauge where I'd be at a few years from now, I increased each trade to $2500 (10x). My profits soared to over $2500 for the month. From what I have been able to work out, the broker fees for small trades eat up such a large % of your profits that it's almost not worth doing.
Just looking for some feedback. Have any of the seasoned traders experienced what I've stumbled across? Also - would what I described above be considered a good ratio. I am limiting my overall stop at -2.5%, or $62.5 per $2500 trade, which seems to work for my plan.
Looking forward to your feedback.
- mjblake
I've posted a few times and received some good feedback. I have just completed my first paper trading month. Again, just using a spreadsheet to track my trades (just got a Think or Swim paper account and love it). Since 2/24/2015 I would have entered and exited 22 trades according to my current plan. My results were less than spectacular... or so I thought. Out of the 22 trades I was stopped out 11 times for a loss. But, due to the information I have been able to acquire from instructional sites such as this, I learned to limit my exposure to loss while maximizing my gains by moving my stops as trades progress. The end result... I would have made roughly $270. However after broker fees that would have dropped down to about $60... holy cow!!! All that work (not really compared to my full time job) for only $60... Now the good news. I was investing only $250 per trade...$250/ trade is nothing compared to what I see most swing traders performing. So just to gauge where I'd be at a few years from now, I increased each trade to $2500 (10x). My profits soared to over $2500 for the month. From what I have been able to work out, the broker fees for small trades eat up such a large % of your profits that it's almost not worth doing.
Just looking for some feedback. Have any of the seasoned traders experienced what I've stumbled across? Also - would what I described above be considered a good ratio. I am limiting my overall stop at -2.5%, or $62.5 per $2500 trade, which seems to work for my plan.
Looking forward to your feedback.
- mjblake
No comments:
Post a Comment