lowtrade

[lowtrade]

Why do I always make money on paper?

Same reason the register line stops moving, every time you change lines.

The world is against you! LOL

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Keep in mind 2 trades at a time. Try to keep gain goals & exceptable loss size equal, with the same amount of cash in each trade.

As I always say, it's all in the numbers.

If you put $1k in 2 stocks which had a 20% pop. Pick a second day with an expected 1/2 that follow thru or a 10% goal for the day. Now choose your slice of that as 1/2 or 2/3 of the 10% and pick a loss 1/2 the gain. This increases your odds for success. See how I use numbers to get my little slice of the pie. Greed - not good day trading - Bit by bit over time, with odds in your favor - GOOD.

So heres the day 2 stocks 5% gain goal 2.5% exceptable loss. On 2 stocks which you expect 10% follow thru with.

If you win both you make 10%,
If you win 1 you make 2.5%
If you lose both you lose 5%.

At the end of the day your odds are 1 to 3 to have twice a better day, then worst possible day. 1 to 3 odds to win a little and 1 to 3 odds to have a loss half, what you could win.

With good picks, with less emotion and more support seen in the retail reaction to the price surge and knowing the average daily move timing. It's hard to lose more then you make over 6 or 12 trades. At the end of the week bits add up. At the end of the month weeks add up. Its called income trading. I normally do this swing trading. Because day trading is higher risk. Emotion is involved. NONE of this is about playing on the OTC, where manipulation is involved & emotion. Raising the risk level higher yet. I trade the big boards. Only pond fish at the OTC usually.

It's all in the numbers. The paper trading helps you learn the timing and with picking good prospects. Nothing can help if you choose the most emotional plays. chasing the highest gains. Those huge high gain gappers!