Last week I managed to turn a decent profit with some day trades. I am not able to do that much more because my day job is currently too demanding to do both. Since I need that income to pay my bills, I must be patient and find the right opportunities to profit.
I have a 1-2 month plan with the penny stock UITA. I am holding out for some sort of news in June that will send the price through the roof. With that position showing a loss of more than $4,500 currently, I am deeply committed to this trade. If it doesn’t pan out it will set me back several months. No risk, no reward.
Robinhood & The Right Opportunities
I still have my Robinhood account, follow this link to learn about setting up your own. I have invested about $2,000 into that account and currently have about $1,950. I want to see if I can get it into profitable territory while I wait out some the positions I’m holding in my E*Trade account. You can always see my current positions and values here.
If you sign up for a free account at trade-ideas.com, you can log into the chatroom and see what actual day traders are trading. You will also receive a trade of the week every Monday. I decided to look at the trade of the week and see if I could make some money with it.
The trade came in around 8 am on 5/28. Microsoft (MSFT) was near an all time high and they said that if it got above $99 per share it could rise significantly more. They suggested putting a stop at the 50 day moving average, about 5% below the current price. Typically I like to have tighter stops around 1%. Lets see if I can combine their idea with my strategy.
The Trades: MSFT
5/29 I bought 19 shares for $98.35 each, total cost was $1,868.65.
I sold those shares with a Stop-Loss order for $97.85, total sale $1,858.97. A Loss of $9.68.
I didn’t wait for the price to top $99 like the idea suggested, I tried to get in early and it backfired.
5/30, second attempt, I bought 19 shares for $99.08 each, total cost of $1,882.50.
These sold a few minutes later with a stop-loss order for $98 each, total sale $1,862.59. A loss of $1,862.59.
My stop was too tight, and it kicked out of the trade-in, losing territory.
I decided after 2 failures to leave MSFT alone for the rest of the week.
The lesson I take from this experiment is don’t try to combine strategies. If it is my strategy, I should play it by my rules. If I borrow another strategy I need to follow those rules and not try to mix the two. MSFT ended the week at $100.80. Had I used the stop they suggested I would have turned a profit. Instead I’m licking the wounds from 2 losses.
Final Notes and Thoughts
As the week progressed I was still looking for another RIGHT Opportunity to find another swing trade with my Robinhood account. I got a tip from the chatroom that QTS had been rising and was showing no signs of slowing down. I bought 50 shares for $34.38 each, total cost was $1,918.95. I hope to sell these for $45 each. I was still holding these at the end of the week.
On 6/1 I made my usual contributions, $50 to the E*trade brokerage and $105 to my IRA.
Thanks for reading and happy trading! Please ask questions in the comment box below.