Week One

Before we start talking shop, I think a more formal introduction is a better jumping off point. You see, I am not yet a full time trader, I am an aspiring full time trader. What I do for a living is forensic science. I am a Forensic Serologist, which means basically that I spend my days searching for, extracting and analyzing DNA evidence for criminal cases from all across the United States. I love my job. It's fulfilling, the people are awesome (albeit a little weird and that includes myself), and challenging. It is what I went to college for.  It's what I dreamed about doing ever since I gave up on my high school dreams of being in a band. My dreams going forward include things like travel, becoming an amateur astrophysicist, reading more books than I already do (which if you knew how many I read you might ask why) etc. I see the stock market as a tool I can use to get to do those things.

Luckily I found a second passion. One that I plan on eventually trading in for. No pun intended. Day trading offers opportunity. I'd bet that's why you're into it. You already recognize this fact. Well I want the same thing, and I'm working to get it. That's why I built this site. That's why I track numbers on a daily basis and have been for years. That's why I started this blog. That's why I sell my watch-lists. I want to have the freedom to one day quit my day job and live off of my day trade profits and whatever meager income this site generates. I want to be able to move anywhere in the world on a whim and still have a career.

Still, I recognize that being a day trader doesn't come easy. I work hard to keep up. So you may ask why I called this blog the Lazy Trader. Two reasons, neither of which is that I'm a lazy person. First, I take a more hands-off approach to trading. I keep it simple, which is the opposite of a lot of what I see out there. Second, I want to convey that this can be done without having to dedicate 16 hours a day to it. Currently I can't afford to be a full-time trader, so I must trade when I can which basically translates to when I'm allowed to. Which is not all the time. Which brings me to my current game-plan.

I want to take a slightly different approach here. I want to show people that they can trade with a tiny amount of money even if it's for nothing more than a hobby or practice. Using such a small amount, at least to begin with, means playing by a few specific rules. I have to mostly swing trade. I can only do three day trades every five rolling business days, which means I try to make them count. It also means that I use a commission free trading platform. Paying a commission with such a tiny account would eat away all my profits.

I will never spend any of the money I make. I intend to compound it, then as the amount of money I have grows I will modify my strategy. At first I will only be able to buy and sell one stock at a time rolling the entire amount over into the next trade. As my account grows I will diversify more and more frequently. Eventually, I will do an overhaul to the strategy as required. This will be when I hit about 2K to 5k. So it's a ways a way. For now I will keep it straight forward and easy. 

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As you can see, I had a profitable week. I started with $201.60, and ended with $234.47. (I know the last buy shows $219.12, this is because I can't use all my money on every trade due to buying power). That means I had a total profit of 20.17% for the week. Not too shabby. 

I lost money on the last couple trades of the week. That's okay. It happens. But I was profitable on the week and that's what matters. The trade on MBRX that lost was because I saw what I perceived to be bullish activity that indicated a decent probability of future strength. I bought with the intention of selling rather quickly after the next run which I expected within the next 15 minutes or so. It never came. Support held up well but the bullish activity was dwindling so I left. No harm no foul. Using the same technique I've had upwards of 50% profits within ten to twenty minutes, but hanging on to such a position for a long time is risky. So I took my loss, entered a good looking swing position and held for the night. Turned out that swing trade also lost. All other trades last week were profitable so I'm pretty stoked on that.

This next week I will likely have to wait until Friday to make any day trades so I hope there are stocks in play that day. Otherwise I will swing trade every day until then. 

Final notes on my strategy:

I find stocks by looking for a trend and momentum. It's basically as simple as that. I look at live indicators not rolling averages. I always assume breakouts will fail (it's right like all the time). I close positions that are down and hold positive trends as long as possible. Lastly, starting with $200 dollars may seem futile or even laughable but let's say I maintain 20% gains per week. Due to compounding, in twenty weeks I would hit five thousand. In 49 weeks I would hit one million. Obviously that's not going to be possible but I'd settle for a fraction of that. Time will tell if my strategy if sustainable. Here's to hoping that it is.