Back in the Saddle Again

I’m scared to death to write this post.

I feel like... if I put this out there for all to see I’m gonna jinx it!

BUT... here I go anyway... I absolutely KILLED IT this quarter! I’m up nearly 30 percent! Now, for many of you this does NOT constitute “killing it”, but rest assured for me it does.

It’s been 11 months to the day since I last posted. Back then I was over-trading with positions too small, getting smoked by commissions and poorly placed stops. I couldn’t seem to hit much more than 50% of my trades, I was cutting winners way short and letting far too many losers run!

I was also coming off a horrendous 2014 in which I lost nearly $6K... a substantial chunk of my $20K account. 

I was trading from a place of negative emotional capital.

So pretty soon after my last post back on May 1st of 2015 I stopped trading - completely. I was spinning my wheels, getting nowhere and eating up A LOT of time.

I wasn’t quitting - I just needed a break, a BIG break.

So I hit the pause button... actually took some of my trading capital put it in my Roth IRA and sat on my hands. I didn’t trade for months. But I never stop watching the market, observing technical set-ups and taking mental notes. I was constantly “working” and learning... I just wasn’t trading. 

So when this year rolled around, armed with a much smaller account of $6,725, I decided to SLOWLY get back in the saddle. 

Here’s what that looked like... 

  1. ABSOLUTELY NO options. 
  2. Do not over-trade.
  3. Play VERY conservative, slow moving names like MO, KO, and JNJ to name a few
  4. Enter set-ups you are comfortable with... do not fight the trend.
  5. Since I’m in more conservative names I can trade bigger size and use margin
  6. When you get a profit - TAKE IT!
  7. As soon as the trade turns against you - GET OUT!

I can go into deeper detail on these points, but this is the basis for what I’ve been doing in 2016.

The bottom line is this... I’m seeing things unbelievably well, so well it’s a little scary! You know in baseball when a hitter is on a big streak he’ll say “I’m seeing the ball really good... it’s about the size of a beachball!” Well that’s me right now... I’m seeing set-ups very clear and when I enter the trade it just seems to go my way right off the bat. It’s a wonderful time, and I’m enjoying myself.

Here’s a breakdown of my Q1.

68 trades = (16 option trades (yes I added some in the mix) & 52 stock trades)

Stocks = 36 winners, 11 losers & 5 break-even’s = 69% win rate, & NO bad losses

Options = 9 winners, 7 losers (6 of those were bad losses)

Total Q1 Realized Gains = $1,987.38 (29.6% gain on original $6,725 capital) 

Now, I’ve still got a lot to learn. I’m not saying I have discovered any magic formula at all. I’m simply in a really good groove right now.

Lets just hope I didn’t jinx it :)