New Account, New Goals, New Adventure

It's been an amazing week so far! I finalized everything with my investor, and have started trading our new account. In this post, I want to share the details of the account, what our goals are, and how I plan to achieve those goals.

I'm a day trader/swing trader. This means I look for opportunities to buy and sell stocks for profit, while holding them for a short amount of time. As a day trader I may only hold a position for a couple hours, a few minutes, or even seconds! As a swing trader, I look for the chance to buy and sell within a couple days, or a few weeks. In the trading world, there are a few pros and cons for doing what I want to do. First off, to be a day trader you need an account of $25,000. This is the con because, If you do not have that much cash in your account, you will break the PDT (Pattern Day Trader) rule. The Pro is that I can trade on Margin, meaning I actually have a buying power far above my account equity (how much cash I put into my account). My account is with Fidelity, which offers 2x buying power. My investor has set me up with a $30,000 account, giving me $60,000 of buying power. Now that we understand the super, simple basics of my account, lets talk about our goals.

My goal is quite simple. Each week, I would like to make a 5% profit on my account, or $1500. The good news is that there are opportunities every day to make much more than that, but we want to be realistic and not chase trades. Here's the deal, in all of the day trades I take, I will only take a position of $15,000 or less. For example, If the price of the stock is $8, I will only buy 1000 shares, giving me a total price of $8,000. This means I have a lot of extra buying power to work with. By taking swing trades, that could take a couple weeks to complete, I can let most of my money work for me, as I actively trade the rest. That is the definition of Humble money.

We are half way through the first week of trading, and we've already seen amazing results! Click here to see the mid week recap, and how I plan to make Humble Money.