Mid-Week Recap

Last week was a great start to my small account I started on Robinhood, and this week is showing just as much potential. I’ve only executed one trade, and we’ve increased our account value by 4%! Later in the week I will have two more day trades, and will use them if opportunities come my way.

If you would like to start your own stock trading account, make sure to check out Robinhood. I’m definitely not sponsored by them so don’t think I’m being biased. It’s by far the best brokerage to use for starters simply because there are no commissions. The app is completely free, and so are the trades. Here is my referral link which gives both of us one free stock if you sign up! 

http://share.robinhood.com/landenl2

Now let’s get to the recap.

The trade we executed was with the ticker $WATT. The company had already seen a crazy jump in price, and you could definitely say I am late to the party. Check out the chart below.

My goal for the day was to make only a couple dollars per share. I noticed the price likes to jump in the morning, and I wanted to be part of it. I bought in right before the $30 dollar mark, knowing if it broke above that price it would see a good jump in price. It did jump, to $33.5,  but I wanted to see it go higher. This is where you can see my mistake. No trade is perfect, and the flaw in this trade is greed. I should have sold near the peak, around the higher $32’s. I set a stop loss at $31 in case the price dropped, and not much after it dropped right below my stop loss. I don’t believe this company has any more potential as it is already over extended, so I didn’t keep my shares for the next day.

I must remember small, consistent profits is the key to success for day traders. I can’t beat myself up for not making a dollar or two more per share, but I can still learn from my mistakes. It’s very encouraging to see our success so far, and I’m looking forward to what the future holds.