Live Off Dividends

Passive Income and Personal Finance

My Day Trading Strategy and Weekly Report 9/19/16

my-day-trading-strategyThis is my first week of consistent day trading. My strategy is to only buy stocks that I would be willing to hold long term, even if these stocks are already in my portfolio. I’m also looking to buy stocks at a price I would be willing to buy in at for a long term investment. That way if I do get stuck holding the stock for awhile it’s at a price I’m comfortable with. Worst case scenario I’ll hold the stock and collect dividends until I can make a profit. I’m currently trading with about 5% of my portfolio.

I’m an extremely inexperienced day trader so I think my extremely low risk approach is a good way to gain experience. I’m not really looking to make huge profits on these trades for now. I’m more looking to gain experience but I do have an immediate goal as far as profits go. I would like to average $3.25 per day. I think this is a very realistic goal. That would give me an extra $820 profit per year assuming 252 trading days per year. Which is roughly what I end up taking home from my full-time job paycheck. So my immediate goal is to make an extra paycheck from it.

I probably shouldn’t admit this but I make all my trades while I’m at work so it’s not really taking anymore time out of my day to make these trades. I’m going to add the profits from my trading back into my “trading money” so that I’ll be able to purchase more shares and increase my profits.

Here are my trades for the week:

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I made a profit of $10.19 this week. It’s definitely not a get rich quick scheme but it’s something. I hope to improve over time with increased capital and experience. If I can continue at this rate I’ll increase my overall gain by a couple percentage points for the year. It may not amount to much this year but I think over time it will be worth it as it doesn’t require very much effort.

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4 Comments

  1. That’s a lot of trading for $10. I’m assuming you are using a free trading platform and there are $0 commissions. Look forward to seeing how your other weeks pan out. Thanks for sharing.

    • Yeah I use Robinhood so I don’t pay any commissions. I make all my trades while I’m at work so anything I make is just icing on the cake!

  2. May I inquire as to how with a paycheck of $820 you are able to put enough money aside in RH to avoid Pattern Day Trading (PTD) rules/laws? This is something I personally am struggling with at the moment.

    • As long as you maintain an account balance of $25,000 in your account you are exempt from the PDT limitations. I have extremely low expenses so I’m able to save the majority of my paycheck. My paycheck would actually be more but I contribute $200/paycheck into a tax-deferred account.

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