Since I’m working towards finally publishing my trading ebook I’ve decided its time I need to start actually writing on a regular basis. While there is a constant churn of shit coming out of the world of finance it can actually be a challenge to get motivated to write something of quality.
Now, not about to rate this blog as “quality” at this point, but you have to start somewhere. One of my goals is to post a list of shitty ideas each day and write about all of them or just a few, or actually hopefully just one.
I stole this idea from James Altucher and his “Idea Machine” post.
My hope is to build a little momentum in my writing frequency and quality, as well as give a reason for someone to actually visit this blog from time to time.
Alright enough self-deprecation, time to post the ideas.
Since I’m currently working on an ebook about how to become a high performing “Part Time Pennystock Trader”, I figure my first list should be trading related. So my agenda was to create a list of 10 items to blog about revolving around the world of penny stock trading.
Here it is:
10 Things to Blog about – Trading
1. Daily Goals
2. Pre market prep
3. Showing up every day
4. Focus on your type of plays.
5. Avoiding chatter, social media, chat, news etc.
7. Sticking to stops and profit targets.
10. Trading Rules
I’ll start with number one for today, daily goals, or profit/loss goals. I know a common rule for trading is to not set a profit target. But I disagree with this, you have to have some point daily where you determine it a good or a bad day. Sure don’t force trades to dig out of a hole, but if you are trading well you should be piling up bigger profitable trades vs losers. Myself I set a target of $500 a day. I figure at some point this will expand, but in the current conditions of this summers scalping market I think $500 a day is a good number.
While I prefer not to trade all day long, I REALLY enjoy taking time off. That is one of the big things I like about this idea, if its noon, there are no great plays and I’m sitting on $500+ in profits. I can happily mail it in the rest of the day and work on self improvement, or read or just hang out with the family.
I think the open ended grab bag idea of getting as much as you can every day is flawed. I’m sure I’ll get disagreement from many traders and I have read plenty of articles stating that profit targets are foolish. Now am I happy with $500 a day, no not at all. But again I work best with a goal and a goalpost and I think setting one is valuable. I have experimented with using a certain number of profitable trades as a goal, but that is flawed for me and any part timer I think. When I focus on making 0-3 trades a day it can be somewhat unrealistic to have a goal of 2-3 good trades a day. On some days it will be easy to have all good trades, but for me and anyone not trading 10 or more times a day it is more often you will have one really good trade (+$1500), and one pretty crappy trade (-$250).
In this scenario your quality score is only 50% but you have exceeded your daily goal by quite a margin. So I can call it a day and consider it successful.
This has been a brain dump and my first actual written blog post in a while so I realize there for sure could be more editing. But I’ll be back working on daily progress tomorrow.