What I wrote down in the morning for $DDD
"Look for 32.50 area" - What I mean by this is let the stock reach the 32.50 area before making a move. And guess what? The F'n stock went to 32.60 in the morning and that is when I was like HYFR (Hell Yeah F'n Right)
This is why it is so important to have a plan, I did not do anything special, all I did was look down at my paper and then look at my screen and wait for the trade to come to me. I am not saying it is easy to make money day trading but it is easy to avoid losing money! It took me 4 + years to understand this and probably thousands of dollars in losses to come to this point and I'm still learning, still figuring strategies out daily. It is also important to keep a log of every trade, that is why I made this blog, it is mainly for myself, to track my trades, thoughts and learn from it.
So here is the trade, $DDD (3D Systems) was a gap up in the morning and I thought it would be a simple stock to trade as long as the right setup formed, and thank god it formed. I only traded 30 shares, so where it says in the picture "Buy: 32.84" that means I bought 30 shares there, and the ".30 cent risk" means that if I bought shares at 32.84 I am willing to let the stock go down against me to 32.54 and I will exit the trade and take my loss. So therefore for every share I buy I am taking a .30 cent risk, 30 x .30 = $9. Therefore I risked $9 today. Doesn't sound like much at all does it? But imagine I can make $10 everyday consistently for a month, I will then consider increasing my risk per day to maybe $20 and increase my share size, therefore increasing the amount of money I will make in each trade. Why risk $50 a day to learn how to trade when you can do it with $10 or less? I can have a risk of $1 if I wanted.
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