Day Trading Two

I traded again today until 1030h. Covering the trades is of little consequence as any one trade is just that. Four completely different stocks (one option and one missed entry) resulted in an up day... which is good as yesterday ended down by less than the commission costs.

$145 between the two days with very small position sizing. My option trade was the big winner today as it was inside month and just ITM. $4.90 to $6.00 on two contracts is a $220 trade.

My overall win rate is 2 of 5, not stellar but the trades average out to $29 per trade net losses and commissions. The idea is to keep the losses tight and let the winners run.

Return on investment is hard to gauge as I never had my whole capital at work. Having said that I am using my margin account which allows my 3:1 margin. I have about $5,000 in there that is not already in medium term trades so I will count this as my base for now. That leaves me with a 2.91% return for two days.

Yesterday was supposed to be a trial day for the trading room as this is a brand new service setup so we were not supposed to make any money... so if I do not count yesterday I am actually at 3.25%.

There are about 200 people in the "trading room" at once, all paid subscribers as I mentioned. The executions are fast. The room administrator...I don't know what he is called, is running the show by bringing up stocks and pointing out the entry levels and possible targets. I can follow along and see what is going on on my charts easy enough but we are paying him to come up with profitable ideas.

Originally this was not my idea of trading as I wanted a self directed account where I am the producer of the ideas and executioner of the trades... and the beneficiary of the profits. I am learning more of what to watch for in the first hour of trading. I did not fair very well in my initial foray into early hour trading before and now I see some of my pitfalls quite clearly.

So, for the time being I will follow along and produce some gains and grow my margin account. I figure that I can treat this as a training course rather than a cash cow so once I get enough experience under my belt I will be looking to do this on my own. It does give me a crutch that I could use if my own ideas end up not panning out.

Jeff.