Hello blogees! I decided to start a blog to chronicle my journey from hapless market bystander / incompetent participant to consistently profitable, daytrader. It certainly wouldn’t have happened without guidance from mentors, namely Timothy Sykes. I’ll give credit where credit is due, without giving away too much of his strategy.
Some background — I placed my first trade when I was about 12 years old. I remember scouring the internet (then relatively new), for rates of return on different blue chips and mutual funds. I ended up picking what turned out to be the best performing Vanguard mutal fund and poured all my money, hard-earned through my childhood leaf-raking, and dog walking companies, into the fund. A few years later, in 2003, I parlayed that money into shares of Sirius ($SIRI), trading then around .70 cents / share. I watched shares climb into the $8’s, however after steadfast stubborn-hood, insisting that the shares would be trading in the $20’s and surmising what could be done with all the new-found profits and glory, I watched shares retreat into the 3’s, much to my adolescent chagrin. I reluctantly took profits in the 3’s and 4’s, learning a tough lesson about profit-taking.
Fast forward a handful of years to college, I made a few swing trade mistakes that rocked my confidence — In 2007 I had bought shares of Healthstream ($HSTM) in the low $3’s, with a thesis in mind to hold through a share buyback program and a restructuring, which were sure to appreciate the shares to my benefit. I was right, but not before getting impatient and selling all my shares. Over the following weeks, months and years I watched my thesis unfold, without my participation, exactly as originally planned.
Another swing-trade, train-wreck, clusterfuck was my Visa ($V) IPO trade. I remember getting up at 6am Pacific, pacing pre-market with my laptop in the miserably freezing, dark Seattle dawn, waiting for the second that shares began trading. Buying at $55, and watching my shares rise to $90, I thought myself to be some sort of hero. Again my thesis was to hold for a swing, with a price target of $200 (a la the recent Mastercard $MA IPO). I was right, but again not before taking profits wayyyy too soon. See turdification below:
What both trades taught me was, when crafting a thesis, stick to it, or at least try to. A little more patience and better knowledge of techincals would have potentially helped.
More lessons, trials, tribulations, failures and triumphs to soon follow…