Summary Week 1
This was not a bad start for the trading account. There were a couple of missteps with the final result still up in the air.
During the course of the week I made one critical error in execution that cost me $176. Once realized, I could have quickly turned it and come out ahead by about $40. Nothing to write home about, but $40 profit beats a $176 loss. Greed took hold and I figured I would ride it out rather than making the prudent move to cover a mistake.
I also finished the week with an open position of significance that could lead to trouble given the pace of news in the sector. I am holding 2,000 shares of C with a cost basis of $2.83. The stock closed the week at $2.62. On paper, a $420 loss.
At the highest point, there was about $7,400 in capital at risk. The amount currently at risk stands at $5,668.
Without the paper loss factored in, the week finished with a profit of $2,325.90. Factoring the -$420 paper loss, the week ended at $1,905.90.
Going forward, my view has to broaden beyond the few names that I traded during the week. I also have to have more discipline in closing positions that could be exposed to a large loss. When trading for the short term, it is almost imperative that we follow the volatility that the market provides and I have to be able to spot the trends.
Related articles:
