I think it might be beneficial to take brief looks at the challenge overall from time to time so I can address how I feel its going, what I think needs work and what is planned in a more direct manner than the daily account updates, which mainly focus on the trades and performance of the account itself.
I’m really happy with how the challenge is going thus far in terms of setup and education. I’ve spoken with many members privately and in public chats who have expressed that they’ve found the challenge extremely helpful and for that reason I already consider it a success. The main goal of this challenge, while ultimately being about demonstrating profitable trading, was to communicate in a better way some of the strategies and psychological skills needed to become a “good trader” with emphasis on managing risk while maintaining decent profit potential.
One thing that I think should be clarified is that I’m not currently trading this account how I trade. The reason for this is that I normally take incredibly risky trades with money that I could set fire to, however, for the sake of this challenge, I’m in the mindset that the money in this account is important. My goal is to never add money to the account during the challenge and in order to achieve that goal, its paramount that I trade responsibly. I’m doing this to show people how to change their lives through steady gains and compounding and those “flashy trades” don’t really have a place in an account with only $1,000 in it.
Will there be a time for them? Absolutely. My trading style will evolve with the size of the account. Over $10,000 I might take some riskier bets with a couple contracts, as you’ve seen thus far, I’m not doing things like buying earnings gambles or anything of that nature, it’s primarily been directional bets on swing trades. Over $25,000 I’ll convert the account to margin and start scalping in pre and post market.
As far as performance goes, I’m again pretty happy thus far. The account sustained some heavy losses, which I’m not too thrilled about, but they gave some early opportunities to demonstrate how to remain calm and trade out of a bad situation.
The accounts current issue is purely overnight holds. Had I not held SENS overnight, the account would likely be over +100% at the moment and if I had cut XOM yesterday, I probably would be up a decent amount again today as I intended to continue playing it and would’ve bought the dip pretty hard. While I’m not to the point of cutting out overnight holds for the time being, I am certainly considering doing so and placing more of an emphasis on day trading and immediate profit taking to break it out of the ~46% profit range its been bouncing in.
However, I can’t sell myself short, +44% on account is more than a lot of accounts see in a year and we’ve only started the second week. If I get too focused on crazy gains, the challenge will lose something important, so slow and steady it is for now.
- Pace - I need to trade a tiny bit more actively, I’m focusing on one large trade at a time currently and I’m leaving some profit on the table by doing so. Now that the stream is running smoothly, I will likely attempt to pick up the pace a little bit.
- VC - I’m still not active in VC despite saying I would be several times. So yeah, I just need to actually be in VC a bit more.
- Forum DD - Linking into #1 and #2, most of my trades are not making proper use of the forum DD quite yet, I’ve started today, but I’m going to really hammer down and start reviewing, contributing to and using the DD on the forum to power the trades in this account.
While the challenge thus far may be seen as uneventful, there is a method to the madness. As the account grows, so will “the entertainment”. For now though, I think we’ve provided some valuable education and helped at least some people make some profitable trades and that’s really what its all about. But either way, I think interest in this will ramp up pretty solidly in the weeks to come.