Thanks...this thread has a lot of good info/people on it.
The story I want to hear is how you turned 2K into over 40K
LOL...which time??? >>VBG<<
Basically, I read about trading like crazy...let me put it this way, I read more about the stock market/trading in the last couple of yrs...than I have about science (I spent most of my free time reading different books, web sites, attended the LA Times Investment Conference, & the Day Trading Expo, etc...but of course I still kept current with the science : )...I just finished my MS in Biochemistry & Molecular Biology this past Aug...BTW don't try to trade & write a thesis @ the same time...the two don't mix very well...kind of like oil & water ; )
The 1st time was last Jan/Feb/Mar...position trading the inutz when they ran...eg. YHOO, CMGI, CNET, GNET, EBAY, NSOL. You know about the NSOL trade. Also have had many profitable positions turn against me, due to the lack of a stop/loss option with option orders, when I went to class or lab during market hrs...so If possible use Stop loss orders
The next time Apr/May...position/swing trading eg. the same stocks...I got to ~60K this time...but lost it over the summer...I learned that Know the overall market, (trending/choppy) and know how to trade that type of market...there is a difference...I knew the market & how to trade it, yet I couldn't dedicate the amount of time to baby sit my positions...I was writing my MS Thesis...I should of stayed out. Knowing when not to trade is just as important as knowing when to trade. By the time I figured out that I should stay out, I had ~10K. Then I tried to trade right away, after not paying attention to the market for a couple of months...big mistake...Next time I take a break I will take the couple of weeks to get a feel for the market again, before trading...it was foolish to think I could get back into it so quickly. I also realized I spent many $K on commission...so I moved my account.
Then I opened my new account with $2K...in end of Oct...current I've traded YHOO, EBAY, DCLK, BRCM, VRSN, RNWK, QCOM, CELG, GNET(current...but maybe not for long : ) My big mistake last month was with QCOM...I had my exit pt of $50 for my QCOM Nov $360 calls...I saw it hit my target, but got greedy...I didn't stick to my plan...I should of just dumped it...but thought it would run still...went to a retreat couldn't trade for a couple of days...HUGE MISTAKE...Don't be greedy...if you trade for pennies, the $$$ will come : ) On a volatile stock that has already run...never leave an open unattended position for a long period of time...especially going into option expiration week. When I got back, my $30K (paper) turned into $3K. I also learned to Take your $$$ and run...Trade your plan...don't revise it 1/2 way through.
Another important lesson from these ups & downs is When I have $$$ take some out of your trading account and so I don't trade it away...so if I go bust I still have what I took out : )...don't listen to yourself when you say...I'll take it out after one more trade...take it out while you can.
I hope you don't have to learn like me : ) I figure I lost a couple of yrs salary this yr, but it was worth it, because I learned a good lesson...expensive, yet good : ) I'm still learning...trading is just like science...it is a never ending learning process...if you stop learning you will be left behind, and then the big boyz will bamboozle you : ) The market is very dynamic...it is up to you to be dynamic to keep up with it : )
Best of Luck,
Where'd He Go?
BTW...I've traded enough to buy myself a new snowboard set up this month (simple pleasures $: ) Now if I can just trade enough to pay for an awesome snowboarding trip (Going back to Whistler/Blackcomb would be cool...hmmmn).
Be sure to do your homework every day you trade. The market is always right...it is up to you to figure out what it is saying |
