So I started learning more about stock trading again as of August 30th, 2010. I have done lots in the past, but have been more passive about the past few years (since 2006/07 maybe).
What have I done so far? Well here is a list:
- Paper Trading (fake stock trading) using the TradeScores website to keep track of the trades. It is a good tool as it will execute stop losses automaticaly for you, provides comments section to write down information, and keeps the basic metrics that I am measuring my system on. I use StockScores website to filter stocks I want to trade and apply other strategies I have learned for when to exit on how big the trade should be.
- Read the book Trade Your Way to Financial Freedom.
- Started to read Super Trader.
- Took Dr. Van K. Tharp’s Trader Test to see what personality of trader I am and then read the free documentation he has to go along with it. It is a PDF with some links back to his website too.
- Did some reading on-line. In particular, there is a decent blog that lines up with my other readings called TraderMike.net.
- Read up on Wikipedia about Fibonacci Retracements and then again on Investopedia’s Fibonacci Retracement page. It is a form of exit strategy on stocks.
- Created a trade tracking spreadsheet to monitor my progress, provide position sizing recommendations for stock purchases, and record brief notes on each trade.
- Wrote out my Objectives for what I want to do for my trading program.
- Documented my first “system” that I want to use. It appeals to my personality, but enforces some rules to keep me on track. I’m testing the system right now in paper trading.
- Created a to-do list for what I want to do next. Items like re-evaluate trades and what went wrong/right with them, pretend I used a different stop strategy on them and see what results would have been, research some other topics I have heard of, book list to read, accounts that need to be set up, etc.
- Downloaded Van K. Tharp’s positioning sizing game. It shows you how results might change based on how you size the trades you make.
I am not trying to be too vague here either, but I am not putting much detail into each item at this time. I will try and do separate articles on them. I think I may recap my learnings for each month as well with a highlight of some of the trades I did (paper or real) and an analysis on where I went right or wrong on them.