As of today I am able to invest on margin up to $34,000. I have saved what I could and get what I could into my trade account and my progress for the week is shown below.
I have purposed a hypothetical situation of profiting each trade session at 1% of my initial investment. The following day will be a 1% increase from the previous day. Continuously accumulating at 1% of the invest I should be able to double my investment in 70 trading sessions. That is approximately 14 weeks of trading. Can it be possible, to have $34,000 in profit in less than four months. I will report my progress at the end of each week.
From the graph I posted for the week, on the 5th trade session I made a brutal mistake. I shorted (VRTX) and did not leave until it was too late. The lost hurt financial and mentally because the session ended with Down Jones moving up almost 400 point gain on April FOOLs day 2008! Surely I was a fool that day.
My actual gain is behind by over $600. because of that significant loss on the fifth trade session. Clearly I will need to somehow make this up. Here comes another mistake.
Mistake- Avoid rushing into a trade even if you feel it has a great potential to increase/decrease. I simply didn't wait and made plenty of bad trades. For instance in session 6 I lost plenty from a (BAC) trade. I would have been over my hypothetical value by the 7th trade session if I had not rush into trades just because of instincts. So remember it is better to wait and miss a chance than to jump in and get hurt bad.
The moral of it all is "take what you can get and nothing more." I had one trade where I spent $6000 and only profited $5 after commissions. Even though it was only $5 and half of that goes to taxes, I came out ahead. If I had stayed with the stock that day I would have ended with over $50 loss plus $20 commission fees.
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