Trade The Journey

Trade The Journey

Everyone Remembers Their First DAY!

My first day.

My first trade.

A month had elapsed since opening my account at TD Ameritrade. “No Commission Fees” was my signal to begin trading but as the days went on I became more satisfied with the practice. The smallest amount needed to fund an account is $50.

I had fifty dollars, why hadn’t I begun trading?

 

It’s not an extraordinary amount to lose; in fact, I spent fifty dollars in total on fast food within the last month.

It wasn’t the same.

I received value immediately when I purchased fast-food, a feeling of being full, comfort and a feeling of excitement in breaking the rules of a budget.

But in Trading, I may not receive value in return; if I go short and lose, I could lose twice the amount I entered the market with. On the flip side, I could win by the very same amount.

Finally, I pulled the trigger and tried my luck in day-trading. First learning lesson, I need to maintain a $25,000 limit in my account if I’m flagged as a pattern day trader within a specified period.

 

With the notice, I became a swing trader and hopeful day trader at some point.

My first-day trade was allowed since it was under the five allotted to an account under $25,000. I traded the one stock I knew, FITBIT. I own shares and brought it before it gapped up, resulting mainly from Google acquiring the company. Although, I owned shares already, I thought it to be a good stock to practice my entries and exits.

To gain some understanding of how the action in day-trading occurs, I begin practicing my strategies through backtesting. Backtesting is a feature that allows you to select a day and time to revisit and trade in a simulated account.

I try to select an anonymous day while keeping the timeframe consistent, and I trade the opening. Trading the opening is known as the amateur’s time to trade. I can see why.

 

The prices move in such a sporadic way; it can be hard to get a footing if you aren’t experienced. However, I like trading the opening because once you gain an understanding of the initial move, you can trade better probability wise.

Before writing a blogpost I trade in my simulated account until I’ve made a profit or at the very least break-even. Today was the first day I correctly assessed the minimum trend for the opening.

If you’ve never heard of the minimum trend, you can google search “minimum trends by John Schultz”. It’s hard to find, so here is some information on John Schultz and technical analysis.

 

Today was my first five-hundred-dollar day.

I learned that there are small details within the price action or ticker tape that can signal moves before the chart can.

One idea that is hard for me to grasp is the chart and its true meaning. After a while, the charts begin to look like bars that vibrate at the slightest change in sentiment. The bars can sometimes lose their meaning, and instead of representing the action, they become the main action.

Those bars represent price action, but they also represent people with hopes and dreams about what the next price movement may hold.

 

Price action represents people and their emotions.

The chart also represents my Fear and greed. Based on what I am seeing is what I am reacting too, and the sentiment of people can change.

If you doubt that, witness how public sentiment ebbs and flows in the political process. Never is the sentiment even-kill, its vibrating based on the latest news developments and forecast of the future.

My goal as I continue to practice and trade is to develop a sixth sense about price movement, which takes time. Not to predict what will happen next but to quickly see when the move is or isn’t working.

 

Thoughts? Corrections? Suggestions?

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