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, 19 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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dmatin
dmatin Mar 23, 12:01 PM

Always keep coming back to this. One of my favorite videos on trading. You picked a great chart to break down and remember.

Gyasi
Gyasi Apr 07, 11:00 PM

This dude blows my mind with every video he puts out. Great stuff, Man. Great stuff.

gill488d
gill488d May 22, 9:15 AM

Thanks, your videos are truly awesome!

Buckers
Buckers Jun 06, 12:52 PM

Teaching at its best, thanks for your insight

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LatinoWolf
LatinoWolf Apr 14, 19 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, 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

wildwes
wildwes Sep 09, 19 7:51 PM

awesome post @mason_fecht! I've been focusing lately on avoiding getting shaken out of my trades and am having much more success!

Drogomirdrogon
Drogomirdrogon Sep 09, 19 11:46 PM

wow man, very inspiring! thanks for taking the time to share this with us. i've been a trading challenge student for a under a year now but i've only been trading for about 4 months. When i get discouraged its post like this that perk me back up and keep me focused. Thanks.

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QuentinC
QuentinC Sep 10, 19 12:34 AM

Rewatching this video and still learning from it. Thanks Huddie.

DoctorHam
DoctorHam May 24, 2:26 PM

Studying over Memorial Day weekend - really enjoyed and learned a lot about SHORTing in this video. Thanks Huddie !

Buckers
Buckers Jun 06, 12:29 PM

Excellent video lesson, thanks for your time Huddie

BELTLINE
BELTLINE Aug 01, 11:00 AM

Thanks Huddie - I really appreciate you walking us thru your thought process

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