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Week of 5/28: Holding for the Right Opportunities

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.

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