Growing a $10,000 account (Back to Real Account)

[Willy 25]

Hello,

(Back to Real Account)

I opened this post as a journal of trying to grow a small account ($3,000). I failed mainly because big losing days that erase all the profit. Another thing that i learned was that is very difficult to trade with a small accounts when you trade a lot of stocks between $50 and $150. I think a small account like that could work for stocks between $3 and $10.

My new plan is to go back to simulator and test a $10,000 account with 6:1 leverage ratio.

 

The plan is trade only the following strategies , that works at the open.

Risk: $80

Reward: $160

Daily goal: $100 (1%)

Max loss (daily) : $160

Strategies:

Strategy 1 (VWAP strategy).

Stocks in play (gapper 3% or more in any direction).

Plan: Wait for the first three minutes. Watching  the 1 min chart,  if one candle  cross the VWAP try to buy (or short sell) close to it, the stop loss is a few cent below( or above)  the VWAP and the first target would be at one of the pre-market levels. The final targets can be defined by the levels in  daily chart. (you can watch  plenty of examples in this thread)

Notes:

a) The first minutes of the market open is very volatile, it is a good habit to keep your hands on the hotkeys to take profits or to sell (or cover).

b) It is very important to buy (or sell ) close to VWAP because of the risk reward ratio (1:2 at least)

 

  

Edited April 3, 2019 by Willy

[Willy 25]

Jan 2, 2019

I did not trade today because the only stock in play was TSLA  (does not fit with any strategy).

 

 

[Willy 25]

Jan 3, 2019

I was late for market open. Not being able to use any of the opening strategies I tried with one that I am testing. This is based on the 15-minute candle for reversal that several in the chat are also testing. I used only the half of the shares that I regularly buy. I was watching $BMY, $AAPL (the 2 with the biggest % change and good volume)

 

 

Edited January 3, 2019 by Willy

[Willy 25]

Jan 4, 2019

Trade on $BMY: I was watching one minute chart and in the last minute of the first 5 min was a relative big red candle,  Andrew call it for a short and i agree with him but as soon as i see that fails to cross the VWAP i cover, and buy it long. I didn't execute well my exit because my plan was to get to 47. (need to work on that). I made a mistake in the amount of shares, i should have take the double.

Trade on $NFLX: Strategy 2 (if the second candle is red and above the VWAP).  The entry was as planned but i didn't like the price action and get out.

 

 

Edited January 4, 2019 by Willy

[Willy 25]

Jan 7, 2019

Trade on AXSM: Strategy 1 (short). Good entry. Works as planned. 

Trade on PCG:  I tried to play a double bottom, but the volume was not there.

Trade on ROKU: very bad execution on this trade. It was an ORB but i get out with no reason because my stop loss should be below VWAP.

 

 

 

 

 

 

Edited January 7, 2019 by Willy

[Willy 25]

Jan 14, 2019

Sorry about last week. I made some trades but didn't have the time to do the journal.

Today I trade NEM that bought another company. It gap down 6% pre - market. The first 5 min candle open below VWAP en close over the VWAP, because it was close to VWAP i bought just closing the 5 min candle. My plan was to sell it at the 50 MA. I did sell the half and wait but have to sell the other half lower. I think is probably better to sell 100% in case that going long on a gap down stock.

Edited January 15, 2019 by Willy

[Willy 25]

Jan 15, 2019

Trade on NFLX: I made 4 trades on NFLX too much for my account. This type of setup if it keeps over the VWAP tends to go upside.  I tried to buy close to VWAP with the stop loss few cents below VWAP.

Trade on KTOV: The first trade i see that is holding over the MA. I go long and get out with the rebound on VWAP (a made a hotkey mistake and sell it half and then get out). The second trade perfect entry ( i entry because it keeps holding the MA) , big mistake exiting the trade.

Trade on  PCG: I tried to short it close to VWAP but i don't like the big white candle, in 1 minute, and get out.

I wait for you comments please. Thanks

 

[Willy 25]

Jan 16, 2019

Trades on FISV: I have a great entry short at the opening with the stop loss over the VWAP but i make a mistake because in 1 min was holding the MA's (i use this criteria with 5 min candles not for 1 min candles). Good plan, good setup, very bad execution on this trade. Later i take 2 reversals, the fisrt one suretrader has problems with the limit orders beacuse of that a miss to take profits. The second one was good.

Trades on JWN: The first one was a short close to VWAP and I get out when the price go over VWAP, then long close to VWAP, this one works. The third one was ABDC, works well too.

 

[Willy 25]

Jan 17, 2019

 

Today i broke a couple of rules. I keep doing the same mistake, getting out of a trade without technical reason.

Trades on MS: The 2nd 5 min candle reject VWAP, I  short sell  it  and with the next candle not even crossing the MA's i get out with no reason. After that i take  a couple of reversal.

 

 

Trades on SIG: The first 5 min candle open over the VWAP an close below it. I short sell it next to VWAP with the stop over VWAP. I took profit to early because the price was so choopy. Bad execution. 

 

 

Trades on PCG: this stock is hard to trade for me. Never follows the patterns of the majority of stocks in play. In stocks that gap up if the first 5 min candle is red next one should be black. I didn't read the setup right. I tried severall times to go long in a stock that was a short. Need to work in that. No more PCG trades for me

[Willy 25]

Jan 22, 2019

Today a was watching only EBAY (+11% pre market) and ARNC (-19%) pre market. Usually the biggest movers are the best to trade.Andrews do a good job watching 6+ stocks but for novice like me i think 2 or 3 is enough. 

ARNC: if a stock that sell off pre market stay above VWAP at the opening i tried to find an entry long. This one was to extended from VWAP  but was holding over the MA's. The first trade the stock goes up but then come back to my entry, i prefer to get out and see if it holds,  it did and i get in again i tried to add more but make a mistake en get out. Then i get in again for the big move, get out in 3 steps. That 17.28 was a level in the daily chart.

 

EBAY: I get in for a reversal but i didn't like the price action and get out.

Edited January 23, 2019 by Willy

[Willy 25]

Jan 23, 2019

Today i was watching SYF (+12% pre market on strong earnings), PTCT (-8% public offering) and IBM (+7.4% on earnings)

Trade on IBM: Watching 1 minute candles at the open i see the stock going below VWAP for 3 min then going over the VWAP in the next minute with big volume, i get in long when it was going up again and get out in the big jump because usually make a pullback, that was not the case today, but i am happy with the trade.

 

Trade on SYF: this is the strategy 1 that i mention at the beginning, the only problem here is that the first 5 min candle was to large and that is no ideal for this pattern. Anyway i short sell close to VWAP and i wait for the sell off, but in this case the price was going up and down (choppy price action) and because of that i get out. 

[Willy 25]

Jan 24, 2019

 

Continue to work the idea of watch the biggest gappers on %. Today i was watching MKC (-12.9% on earnings pre market),  XLNX (+9.4%  on earnings and above all time high), AAL (+6.3% on earnings). Watching 1 min candles, XLNX started below VWAP and then cross over. I buy close to VWAP with stop loss below VWAP and profit target high of pre market. I almost executed my plan, get out a little bit early. But i think that was a bad exit because when i sold half i should wait for a technical exit in one min chart. I need to keep working on how to exit the trade.  

 

[Willy 25]

Jan 28, 2019.

 

I was watching NVDA, VALE, MU, AMD.

 

Trade on NVDA: this one was pretty weak from the beginning. I tried to go short in the third minute, but i didn't get fill. Then after the 5 min when i see another 1 min red candle i get in the it drops 1 dollar but i didn't cover, it came back and i get out.

Learning: When a stock is to extended from PCL don't get to greedy.  I am testing too,  if a stock keeps below VWAP in 1 min chart for about 15 min or longer, when it crosses the VWAP is a long.

 

Trades on VALE: Watching 1 min candle when it crossed the MA's i went long (the correct one is to go long when one candle cross the VWAP) and get out when it crossed below the MA's. Then i get in short (Andrews go long at the same price, that freaks me out, but my stop loss was over the previous 5 min candle. Both makes money, one long and the other short). I added to my  position at the top of the previous candle and get out to quick as always (working on that), i should wait to the LOD.    

[Willy 25]

Hello, 

I have a hulk day on Jan 29. I erase all the small gains in a single day. I have decide to go back to simulator, because a think is very hard to trade with a $3,000 account, especially for beginners. 

I going to test with a 10K account on simulator. i going to start tomorrow.

 

[Willy 25]

Feb 5, 2019 (SIM)

Trade on CTL:  When a stock opens below the VWAP and then cross it i take it long. I give some room until the MA. My target was 14.95 but i take profits 5 cents before that 

 

Trades on STX: This is the same strategy in CTL but  I should buy close to VWAP (big first 5 min candle are not good either) ,  i hesitate and chase it. Big mistake.The second trade my stop loss should be at the VWAP, bad execution ( bad entry again). The third trade i chase it again, very bad execution.

 

Trades on CRON: When the third 5 min candle makes almost an engulfing i went long with the final target at the MA's. When it helds the MA's in 5 min chart, i went long again and get out when it breaks the HOD. I should sell only half (not technical indicator to get out of the trade).