There will be many upcoming posts about my challenge for myself this year – starting with a very very small account, and having to deal with (or maybe not?), the PDT rules. There are ways around it, I’m employing 2 of those ways, but the trade sizes then must be kept extremely small. Doing a small account is something I’ve never done over my trading career, so there has been plenty to learn, and I’m really enjoying the challenge and the experience. All of this was discussed in the conference call recently. The way I’ve set this up and approached this, I am avoiding the PDT rules, small position sizing, but I do a lot of trades.
If you are going to be an outstanding short-term/daytrader, then you HAVE TO consistently be trading the top stocks/biggest % gainers every single day. On a big down day in the stock market on Friday, there were very few huge winners. Below is a quick discussion of my trade with the #1 stock of the day SNSS, total crappy stock but nice intraday setup. Also, what the the scanner had on it on Friday. Traded HIBB which broke out?, but I scratched it, also traded DPW, intraday bko, small gain in/out, missed the DCIX bko, and shorted SEEL. I’m leaning toward the short side of things, plus very quick trades in very trending up stocks.
SNSS broke out, I saw that after the fact, but it was only about 10% above the bko res area, so waited to do a dip buy in it. I try to catch the EMERGING bko, then will use a market order and enter, but after a rally will use a limit order/dip buy – as long as I believe the TREND is still up. Of course I will ALWAYS try to take at least 1/2 off the first day, either regular or after hours:
