Eazybreezytrades

I wanted to take a minute to share a lesson I learned after my transition from Robinhood to TD Ameritrade! I need my total commission, (assuming i have one entry and one exit on every position, this totals $13.90) to be 1-2% of every position I take. Here is why, if my total commission is anything more then 2% of my total position my personal RMS tells me I have to have my mental stop loss at my initial entry price and i would be down 2% on overall position. Here is the my spreadsheet between my March trades after making the transition to TD,(side note... who is a great broker). As you will notice via my spreadsheet screenshot even in instances i was profiting 5-10% on my trades i was still ultimately losing money on my positions. My theory to stop from losing money and to consistently make money is this, my position must be $700 position, my mental stop loss will be at 1% of my intial entry. My total loss on anything if i do exit at 1% will be a overall 3% loss since my trading commision is 2% of my total position. I will be testing this theory over the next two weeks with papert trading before risking my real money on this theory. I will be focusing on these main points while paper trading. Cut my average loss to 3%, focusing on stocks between $1.50-5 as that is the niche i like, and mainly using Moving average exponential 5 day and 20 day with closing periods as my indicators. I will post my results after here on my page!

dmead21
dmead21 May 06, 8:05 PM

Get rid of TD Ameritrade and go to Interactive Brokers. Instead of paying $13.90 youre paying $2-$4 for an in AND out.

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jtran
jtran Feb 24, 8:19 PM

@GroundUp not sure what you have against this guy. Just because he isn’t posting his trades on Profitly or coming out with material it doesn’t mean he lost everything. All I know is that mason is one smart dude and knows what he is doing. He will definitely succeed.

atlastowander
atlastowander Mar 11, 8:24 PM

Thanks for the blog post man! Super helpful!

DominicanWolf
DominicanWolf Apr 14, 11:50 AM

Awesome post! It is inspiring me to keep learning the market and pursue my dream of being a full time trader! Thank you Mason

MikeyMoe
MikeyMoe May 19, 7:43 AM

Lots of good nuggs of wisdom here. I'm almost 2 months into the challenge now and glad to come across a post like this. It's refreshing to see some long bias, everywhere I turn it seems that people want to drop the hammer on stocks-ha! I can see where you are coming from with understanding the mindset of a short seller to help with long setups--Spikeability and Short Stocking have given me some perspective on this, as well as SEC filings and the book the art of short selling by kathryn staley se

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HUGOB055
1
HUGOB055 May 05, 9:38 PM

good lesson. It would be great if we could see level two as well. Like Grittani showes it on trading tickers.

mynbtsa
mynbtsa May 05, 11:43 PM

thanks for recording this great insight

redwagonrider
redwagonrider Aug 17, 12:49 AM

Evertime I watch this, I learn something new! love your videos and the way you describe your mindset on holding your positions through the choppiness. Solid perspective of letting winners run.

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