Sir William Wallace
I trade options and stocks, primarily $SPY options day trades. A lot of people helped me along the way and this blog serves to document what I've learned to help others make money in the stock market.

Week End Review March 5-9: -$47 A Week of Changing Strategies

Go me, I’ve gone from a green February to a red March! These things happen, though. My end of day momentum strategy quit working quite horrendously, so I’ve had to change. But I feel pretty good because I recovered $50 of losses today, Friday, and I’m getting better with my strategy. I feel really good about it, actually, even though I’m down $115 in March.

I broke a major rule though about no day trading. This bottom bounce strategy really begs you to day trade in order to catch the best gains. So glad I have Ustocktrade.

Here’s my bottom bounce strategy, in a nutshell:

  • I’m looking for stocks that sink more than 20%
  • The gap down needs to preferably be with some after hours action, meaning some volume
  • This is usually after hours news like poor earnings or failed FDA trial
  • The more attention the stock gets, the better
  • Buy as soon as it seems to be done selling off, usually in the first five minutes depending on volume
  • Sell as soon as you’re happy with the gains, usually in fifteen minutes depending on volume

There are lots of stocks that tank so this is something pretty easy to scan for. In all my backtesting, every stock that has been analyzed would have realized gains. I’m going to talk a little more about paper trading your strategies and the importance of paper trading in another post. It’s better to lose fake money than real money when you’re trying out a new strategy.

Here’s my week/month thus far:

Okay, now I have to talk about something else and that is how I am doing with making 3% gains per day. If you’ve been following my posts any, you know how important that is to me. I haven’t dedicated a post to it yet but it’s always on my mind so I want to talk about it here. You all need to hold me accountable for hitting my goal.

The below chart shows where I should be right now since there have been fourteen trading days. This would be 3% gain per day and keeping that whole amount to be used the next trading day. As you can see I should be making about $40 per day in order to keep pace. I was doing very well with that and was actually ahead of pace until the past week and a half. As you can see below, compared to the picture above, I am almost exactly $400 behind pace.

Day Earnings Reinvest (Principal/Cash Out) TOTAL Principal
1. $30.00 100% (30.00 / 0.00) $1030.00
2. $30.90 100% (30.90 / 0.00) $1060.90
3. $31.83 100% (31.83 / 0.00) $1092.73
4. $32.78 100% (32.78 / 0.00) $1125.51
5. $33.77 100% (33.77 / 0.00) $1159.28
6. $34.78 100% (34.78 / 0.00) $1194.06
7. $35.82 100% (35.82 / 0.00) $1229.88
8. $36.90 100% (36.90 / 0.00) $1266.78
9. $38.00 100% (38.00 / 0.00) $1304.78
10. $39.14 100% (39.14 / 0.00) $1343.92
11. $40.32 100% (40.32 / 0.00) $1384.24
12. $41.53 100% (41.53 / 0.00) $1425.77
13. $42.77 100% (42.77 / 0.00) $1468.54
14. $44.06 100% (44.06 / 0.00) $1512.60

So by changing my strategy I hope to keep pace. I don’t plan on making up the $400 because I don’t plan on being unrealistic. Instead, I plan on just making that my pace from here on out. If I successfully do that, in exactly six months (I did not exclude holidays just weekends) I should have an account balance of $53,381.30. The other thing that would happen in six months exactly is my birthday, I’ll be thirty-three which as anyone who listens to the No Agenda Show that is the magic number.

If I hit that goal (that’s a HUGE if) then my gift to myself will be retirement. With that much in a trading account, having proven I can reliably make solid gains, conservatively if I cash out all my gains each week I will be making more per month than I am now with a full-time job. And that is after all the goal.

Fifty-three when I’m thirty-three.

That’s $50k in six months.

I’m not betting anything on it, I don’t gamble anyways, but I plan on working damn hard to reach that goal and if you continue to follow this blog for the next six months I hope I don’t disappoint you. Shoot… if I only reach half of that goal, I’ll be super stoked. Cut that number in half again, I’ll still be stoked.

Until next week!

The above compounding interest table was created at the Compound Daily website, and I used the Weekday Counter website to count the appropriate number of days for six months away. Try it for yourself and let me know what you come up with in the comments below!

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