SkyBlue Trading Log – Prologue 1/1/2011
This blog series will be my own personal quest to make money through simple stock trading. During the past year, I logged about $4,000 gain in my girlfriend’s retirement account. Which I think is decent considering that my girlfriend and I are only both in our mid twenties.
This year, she and I have put in some money in a mutual account where it will be managed by me. We are going to use these funds for our future purchases such as wedding, house, and etc. Because I am too lazy to create a separate blogging account, I will log in my trades along with my gaming blogging effort. I just want to manage one blog, not a dozen of them. So SkyblueRPG will now also host my stock trading gains and losses.
This time: I start with a balance of $10,000 in trading fund. I may gradually deposit some more in the account if I have more spare money. Among my mortgage and car payments, I really do not have that spare change to do so neither..
The broker that I will use is Merill Edge, simply because the account is linked with my girlfriend’s account. For every trade, I may post actal screenies as proof of such trades ;p. So the people who follow me know it is not all fake.
I have a couple rules when it comes to trading in the market’s this time for myself.
1. Never Trade on Margin
I have been burned with margin trading in the past, this time around, I vow never to trade on margin again. I simply cannot handle the stress level.
2. Rarely Take a Loss
I will not take a loss unless I believe the stock is a lost cause. If I make a bad stock pick, I will simply wait for it to rebound – it may mean a prolonged period of idle activity.
3. Do Not Lose Money
This sounds dumb, but because this money will be used to buy my girlfriend’s and my house. I will not lose money.
4. Only Trade Stocks that Can Easily be Sold
I will never ever trade penny stocks. Those are scary. Money can easily be lost quite quickly in those schemes.
5. No Bio Stocks
Bio stocks can go ups and down overnight when the FDC approves or disapproves something. Because my goal is consistently gaining money, I will steer away from all Bio Stocks.
6. $5,000 worth of lots until $40,000 equity. Then Change to $10,000 per Trade
I will implement an internal method of diversification that I will not put all my eggs in one basket. I will divide my stock holdings between $5,000 to $10,000, I will never hold more than $10,000 worth of one stock. I will also try to pick different industries when buying into the stocks.
Lol these are my only trading rules. Good luck to me. May you have fun following my gains and losses through my quest.
Start! The money that I use here is all real. It is ironic that although I love gaming, it seems that I love trading more! I may deposit more money into the account later in the year, however it will not be anytime soon. Note I do some estimate when I report my gains and losses to both keep my sanity while lowering the workload. I round account snapshots to the nearest hundreds.