So now that my day job of delivering parcels has finished, I’m now in the position to commence trading and start living my life of freedom.
I made my decision to exit my day job two months ago, and I have been studying several trading strategies while also working hard-setting up this website since June time.
So now that I have finally finished my day job, trading penny stocks instead is now very much about to become a reality!
With lots to do and prepare before trading starts, I also have many other things to sort out away from the stock market and looking for somewhere else to live is unfortunately one of them!
With having to move home it does put more pressure on things, which also means that I will have to be very organised with my trading and fully prepared for the market in order to profit as much as possible with the strategies I’ve learned.
Meanwhile though I have been searching for the best broker to use, as although my mentor does recommend E-Trade and Interactive Brokers as two of the best brokers to use for penny stock trading, I can not use either of them.
E-Trade is now only available to use for American Citizens based in the United States and Interactive Brokers can only be used with a minimum start up account of $10,000.
Once I have increased my account to 10K+ I may move over to Interactive Brokers, but for now I have chosen to set up my trading account with OptionsXpress.
When I made my first ever trade back in August which was a fail by the way, I was using an English brokerage account and I can not say how terrible they are! I will not name them as there is no point, but when I made my first trade I thankfully learnt several of the most important lessons right away!
As it is the American market that I’m going to be trading, it is more advisable to use an american based brokerage firm, mainly due to the exchange rate, but also because they will have more stocks available to trade for the american market.
Challenges Ahead & How I Will Cope
I am fully aware that what I have put myself up for and how I am going to cope is definitely going to be a challenge, and I certainly don’t expect it to be smooth sailing. When did a sailor become a great sailor with a smooth ocean anyhow?!
Being prepared to trade does not merely mean sitting at my computer all day and waiting to see what happens in the market!
I will have done my homework each and every night, the night before the next trading day. Of course this does not mean that I spot everything and missing trades is going to happen no matter how ready I am.
By disciplining myself to only trade what sticks to my search criteria, this will narrow my targets down to precise strategies that will give me far better odds of success.
It would be all to easy to get over excited about trading stocks, in the hopes for fast big profits with a high amount of adrenalin rushing to the head!
One of my main rules is to trade exceptionally well and not just trade in the hope to make money!
Trading failure results from executing trading decisions based on the desire to make money, rather than a desire to trade well.
So while having to look for a new home to live, as well as being prepared to trade I feel that the best way to be successful at this game is to be prepared, but most importantly be disciplined with my strategies and trading goals.
I will not worry about the amount of profits, but I will focus on the risk/reward factor when placing any trades as I know that this is a long haul game and not just a fast sprint with the “lets hope for the best” mentality!
What The Market’s Up To Right Now
It is inevitable that in this long term bull market that we have been in, somewhere along the line we are going to have another crash or correction! No one knows exactly when it will be, but there are lots of signs at the moment with the market overall being slow right now and people starting to be more cautious with buying.
The NASDAQ, looking at it’s peek again since around the year 2000 is likely the main reason for the cautiousness of traders and the general market slowing down. Psychology of trading and traders is what makes the stock market tick!
The NASDAQ is at it’s Peak!
It really does not matter whether we are in a bull market or a bear market as there are always opportunities available and profits to be made. Being prepared for what’s ahead is key to making the best trading decisions and often the best type of trading decision to make will be NO trade at all!
With my trading account set up, I just have to wire money over to it which can take up to five working days. In the mean time I am going to use my first week to actually watch the market focused, with out having a day job in the way!
There is a potential opportunity with $SYPR as it has just secured a new contract deal as a major supplier for the Volvo automobile corporation.
The volume for this stock has been very quiet as of recent, but this is how the penny stock game works and why you get these spikes as apposed to consistent up and/or down trends like you get with major big companies like Apple or Google for instance.
Most importantly the past performance of this stock proves that it can spike decently with positive news.
If was to trade this on Monday I would wait for the market to open on the 16th November 2015 to see if there is any price action, and either piggy back a price increase before it hits $2.00 OR wait for a potential dip buy if it goes the other way. I would be looking to make 20-30 cents profit on this trade.
I’m not convinced that it will go past $2.00 unless there’s some big buyers in the room, but what ever happens it will be interesting to see how $SYPR reacts in this ugly looking market right now.
I honestly don’t know what this stock will do, whether it will spike some more again or slump back down. Waiting to see what this stock does first with price action is how you need to know whether to get into a trade or not. Remember that the market is always right and my thoughts or opinions are irrelevant whether I’m right or wrong.
So it is stock price action that I trade into and not my opinions of what I think about any stock!
Once my account is funded I can commence trading, but until then I will keep my eye on the market and do mental/paper trades and enjoy my first week of freedom doing what I want to do! 🙂
Oh and by the way, once leaving my day job it felt kinda strange at first, but once I got home it was bliss knowing that I’ve got more than just two days to enjoy before normally having to go back to work! 🙂
On a final note I can not thank every one enough for supporting me and wishing me all the best success on my new adventure. Especially my boss KTR or the Sheriff as I call him, as if it wasn’t for him I would not have been driven or inspired to pick myself up to embark on this journey! So here’s to you Sheriff 😉
I hope I inspire any of you that read my blog here and I hope you all realise that anything is possible when you want it bad enough!