What do you think of my stock trading strategy?

using your example of shorting here...I am not too impressed. Why??? because you made so little money on the trades....You might have enough skills to identify a potential short but no skills to get the maximum out of it....you are trading scared of losing a very small profit.

GMCR

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Here is today's chart

http://bigcharts.marketwatch.com/kaavio.Webhost/ch...

You did well to start the short when you did at $50.43 but selling at $50.30 is very poor....Using just Bollinger bands and MACD (with signal line...which works best in day-trading)...you could have followed this stock in L2 untill it reached $48.50

You showed a profit of $130 in your example since you made a total of $0.13/share you had 1000 shares...you risked $50,000....hey the math does not add up here....you said you only had $25,000 to invest???? unless you were silly enough to be on margin for this trade.....

By your math you risked $50,000 to make a lousy $130....if you had some skill in TA you would have made 50.43 - 48.50 = $1.93 x 1000 = $1,930 - $20commis= $1,910.00 for 3 hours work.

Then I would have been impressed.

RIM

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It is hard to tell where you entered @ $16...but let us look at your math again....You made a 3 cent gain yet claim to have made $90 on that trade....to make that kind of money you would have to purchased $90 /0.03 = 3000 shares @ $16/share you played another $48,000.00

I am not calling you a liar....but with only $25,000 in your account....you have exceeded your margin by about $50,000...I cannot see any broker allowing this unless perhaps they allow it because you did the RIMM trade first completed it and then proceeded with the GMCR trade and you had a very fast broker who allowed this.

http://bigcharts.marketwatch.com/kaavio.Webhost/ch...

I am not impressed with the RIMM trade as you would have had to make that trade around 10:00am. Again you made a very risky 3 cents IMHO as the stock could have bounced back quickly, Buying it where you did WAS NOT a good daytrade Buy-IN IMHO...the stock had just taken about a 6% drop and it was done on not really bad news....you were LUCKY to make your 3 cent profit there.

Conclusion

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I DO NOT like your strategy.....you are maxing out your margin on each call, you are not making the most out of you good calls because you have no TA skills which are necessary for a good day-trader IMHO.

You have been lucky so far but the way you trade you could be wiped out with ONE bad result.

Hey,

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org/

I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.

As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org/

There is an inspection problem here - you are only posting about your strategy because you have made money. Many other simple strategies out there (including ones just like yours) did not make money so people aren't posting about them.

Anyway, your trading costs are more than 10% for each profitable trade if you are trying to make $100 on a trade. There is absolutely no way that you can make money in the stock market with short term trades over any reasonably long period of time if your transactions costs are this high. No chance.

Despite your comment that you also short, this is the usual market neutral lie. There is much less friction in long trades and your trades have been overwhelmingly long positions just like everyone else who says that they are both long and short. You have benefitted from a low-volatility up-market to generate lots of brokerage fees and have had some luck.

I'm willing to bet $10,000 that over the next year your strategy loses money. If interested, please e-mail. Thanks.

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GMCR,...10 day trade $10 on a $42 stock..Swing Trade Average-out some of that cost..

http://bigcharts.marketwatch.com/quickchart/quickc...

Trade Stocks with a positive outlook..RIMM is too risky..

If its working for you. Something your missng is that the stock market has been going up steadily for the last 3 weeks even on down days like this it has been a minor drop in the market. People do stuff like that and make money.

If it works, don't fix it. Your strategy sounds about as good as many others I've read about.

Hopefully, the strategy will work just as well on the short side as and when the market turns.

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i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has great impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is important in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don't trade emotionally anymore.

if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.

If it works for you keep it up. Ain't nothing wrong with 188 a day. Hope you become a millionaire before you are 40. Good luck.