Swing Trades
Returning to the daily posts about my trades, I framed 10 possible trade targets today and received fills on 6 of those. No trades were closed today. There are 23 current open positions showing +5.34R.
Long: AEM, BMY, CAT, EQR(1/2), FNV, GLD, INTC, IR, KR, MRK, OXY, PFE, PVG, PYPL, RIO, TPR, TWTR, USO, XME.
Short: JPM.
Day Trades
Today, I only opened and closed one day trade. Net result: +1R. Today I chose to be more selective on my trades. My goal was to bank 1R and then walk away. I got lucky and happened to do this on the first trade, so I sat and watched several other moves throughout the day. Some I missed. Some would have chopped me up. I need the experience and comfort of knowing I don’t have to catch every move and that my account can grow slowly over time. Making 1R each day will generate a stellar annual return. My plan is to stick to the 1R cap for 30 days. I expect it will take more than 1 trade each day in order to do this. On the flip side, I will limit my trades to 4 losers each day.
In baseball terms, my goal is to get on base (+1R). I can swing at the pitch whenever I think best. A loss is when the bat doesn’t connect with the ball. Four losses (strikes) and I’m back on the sidelines. A small win will get me another chance at bat and effectively shorten the distance to first base. I don’t need to hit home runs, and I’m not looking to do that right now. My hope is that each loss will be less than 1R, so that my max loss per day is 2-3R. If baseball players can earn millions of dollars with a .300 batting average, even netting +2R per week should get me the returns I’m looking for.