Took out a loan to transition to full-time trading. 24 years old.

This is a discussion on Took out a loan to transition to full-time trading. 24 years old. within the Trading Journals forums, part of the Reception category; Day 4: Beginning of day: $41342.15 End of day: $42085.77 P/L: $743.62; +1.80% Weekly Gain: +15.74% YTD Gain: +15.74% Not ...

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Old Apr 15, 2016, 11:38pm   #31
Joined Apr 2016
wabu27 started this thread Day 4:
Beginning of day: $41342.15
End of day: $42085.77
P/L: $743.62; +1.80%
Weekly Gain: +15.74%
YTD Gain: +15.74%

Not a bad day today. Played with FCX right from the start and while I thought it would bounce higher, I saw a possibility of dropping a lot lower so I exited but it ended up going higher...higher than I expected but w/e. Made a profit. Played around with JBLU and DAL and made money. Had an appointment so missed a good chunk of trading time in the middle of the day but the appointment ended early so I went back to trading. DUST did not go well for me today...pretty bad actually and when I checked my balance I was negative for the day. Stupid DUST. Then looked for opportunities and found DDD. Played with DDD and did very well. Traded like how I would expect myself to trade on a typical normal day. Not too crazy, not too volatile, in control, and making profits. I was up to +3.6% for the day thanks to DDD but in the end I messed up. My account balance was just under $43000 ($40 short) so to get that $40 and end up above $43000 for the day I forced some trades in and ended up losing half my profits. Such an amateur mistake. Got greedy for $40....

Trading for today I give myself 3- stars. Was in control all day, going in and out on a slow, not too exciting market. Good entry and exits. Was thinking of giving myself 3+ stars until I messed up at the end. Man, 1.8% is just on par with my daily goals but losing half the gains on such amateur trades just making me frustrated.

Withdrew $500 cause my mechanic said I need to replace all 4 tires so next week's beginning buying power will be $41585.77.

Weekly Analysis: Off to a better start than I expected. Was very nervous taking out high rate loans to daytrade since I'll be screwed if I can't pull it off, but a week in, things are looking a lot better. Most of the gains was thanks to a lucky break from VRX on Thursday, but my tradings not too rusty and I'm recognizing good opportunities so I'm building up confidence and looking forward to more trading next week.
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Old Apr 15, 2016, 11:41pm   #32
Joined Apr 2016
wabu27 started this thread @sun11 lol thanks for the advice but if I was planning to wait 1-5 years to trade full-on, i would've not taken out my loans. With the salary im earning i would've saved $30000 by Feb 2017. I took out the loans because I couldn't/didn't want to waste any more time.
@tradedoctor thanks its awesome you are managing outside capital. Will keep you in mind and reach out if i'm having trouble.
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Old Apr 15, 2016, 11:44pm   #33
Joined Oct 2012
Wait, you can't service your basic needs (such as new car tyres) without having to withdraw from your trading account?
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Old Apr 15, 2016, 11:55pm   #34
Joined Apr 2016
wabu27 started this thread yea my salary covers all the recurring expenses like rent, phone bills, student loan interests, food, with like $300-$500 left over per month but whenever I have one-time expenses such as new tires, I have to take money out. This month its new tires and and my car insurance payment. Since I got a lot more loans I will probably be taking my money out regularly to help pay off the loan payments.
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Old Apr 16, 2016, 4:40am   #35
Joined Jan 2011
For my own opinion borrow money from the bank to investing in forex trading, it's not adviable and might will being disaster if eventually can't manage well these capital, so far I am only treat forex as part time job and never borrow money to start trading and I hope will never.
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Old Apr 18, 2016, 10:05pm   #36
Joined Apr 2016
wabu27 started this thread Day 5:
Beginning of day: $41585.77
End of day: $41472.74
P/L: ($113.03); -0.27%

Horrible trading day today. Started the day off very well with DUST but gave out all my gains throughout the day. Poked around in AAPL, NFLX, and DUST. Trading just didn't go for me today. Multiple times I would sell and it would immediately go up... small losses added up and in the end finished negative.
Giving myself 2 stars for todays trading. I was busy with work so couldn't stare at my charts as much as I would have wanted to, but still doesnt give an excuse for poor entry/exits. Made couple impulse trades today because I made good gains earlier in the day (had something to fall back to) but did not think I would end up negative for the day. Wow, such a bummer. Glad the loss wasn't too big but still very disappointed in how I scalped most of the trades today.
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Old Apr 18, 2016, 10:58pm   #37
Joined Jan 2014
Think you need to stop trading, work on your strategy, or work but not both.........you are doing text book mistakes and are about to eat your loan.
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Old Apr 18, 2016, 11:06pm   #38
Joined Apr 2016
wabu27 started this thread @Sonicscooter yea last week work wasn't too much so I didn't feel it but I noticed it today. Trying to perform well at work and trade well at the same time was pretty difficult. Since for now I am planning on continuing with my usual ways, could you elaborate on the "text book mistakes" and perhaps give a suggestion on how I could avoid it?
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Old Apr 18, 2016, 11:13pm   #39
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For example, "Multiple times I would sell and it would immediately go up"

You should have an idea of exit when you enter, if target is reached, who cares where the stock etc goes after.

"Made couple impulse trades today because I made good gains earlier in the day"

What you did earlier in the day, last week, last month, have no relevance to the next trade you make, it has to live on its own merits.

Are you deviating from your plan, sounds like it, so stop before it costs you in £....oops.....$.....
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Old Apr 18, 2016, 11:35pm   #40
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wabu27 started this thread Touche. Well, it is still very disappointing to see a stock move up a moment after you've sold it right after reaching the target price. Today it happened perhaps on 1/4 or 1/5 of my exits. These things happen but its not everyday it happens this often on a single day.
And yes, I think I was deviating from my plan. This money is something I can't afford to lose so I'll keep an extra care on controlling my emotions and staying with my game plan. Was up a little over 3% an hour into the market! I think it was due to trading on a bigger size than I should've.. such a waste of a trading day.
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Old Apr 18, 2016, 11:43pm   #41
 
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Originally Posted by wabu27 View Post
Touche. Well, it is still very disappointing to see a stock move up a moment after you've sold it right after reaching the target price. Today it happened perhaps on 1/4 or 1/5 of my exits. These things happen but its not everyday it happens this often on a single day.
And yes, I think I was deviating from my plan.
This money is something I can't afford to lose so I'll keep an extra care on controlling my emotions and staying with my game plan. Was up a little over 3% an hour into the market! I think it was due to trading on a bigger size than I should've.. such a waste of a trading day.
Thems is a couple of big psychological flags. Just a heads up.

GL
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Old Apr 19, 2016, 12:00am   #42
Joined Apr 2016
wabu27 started this thread @darktone thank you. This is making me think deep... I appreciate your advice.
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Old Apr 19, 2016, 10:10pm   #43
Joined Apr 2016
wabu27 started this thread Day 6:
Beginning of day: $41472.74
End of day: $37628.28
P/L: ($3,844.46); -9.27%

Hmmm where to begin... the overnight position in DUST turned out to be horrible. Did not expect $ to drop that much overnight and for gold to move up that much overnight... was pretty bummed so tried to force some trades in NFLX which turned out to be a dumb move... was down a lot early in the morning and i asked myself "wtf are you doing?" I wasn't trading, I was gambling. So I took a moment to calm down and decided to trade again. Saw a potential bounce move in TSLA and thanks to that im down "only" 9%.
Giving myself 2- stars for today's performance. Was thinking of 1-star but I traded well with TSLA. Good entry/exits and being patient. What to do with DUST.... oh my oh my. Note to self: let's stick with the plan. I remember this feeling that I've forgotten. Takes one day to lose it all.
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Old Apr 19, 2016, 11:00pm   #44
 
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Originally Posted by wabu27 View Post
Hi guys -

Just joined T2W. And posting my first thread.

As the title suggests, I am 24 years old and I took out couple high-rate loans to get my brokerage account over 25,000 so I can daytrade. I have traded since 2010 but only with small capital, so I'm a little nervous. I currently have a job in finance, but it does not pay nearly enough of what I think I can make.

Long story short, since this will be the beginning or the end of my trading life, for I have no desire to continue trading if I seem to lack talent, I'm hoping to have other people come along for the crazy ride and during that time provide me some constructive advice. I have lots to learn, so little time, and just one shot.

Loans hit my bank account today, and I deposited into my brokerage account.

My capital: $13,000
Loans: $25,000 with around 25% APR
My salary: ~$55,000 with bonus

Day 1:
Beginning of day: $38090.89
End of day: $37815.94
P/L: ($274.95); -0.72%

I originally posted on a different community site, but wasn't getting much replies. Maybe it's pretty dead over there? Hope it's better here.

This will be my journal for the record. Let the games begin.
Not sure why anyone would want to take the risk of borrowing money at 25% APR to day trade and sit looking at screens all day and very likely end up losing the lot! Each to their own I guess but I have had far more success sticking to longer term trading that only takes a me a few hours a week. I don't need to check my stocks every day. Sounds crazy to me, but good luck dude
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Old Apr 20, 2016, 6:50am   #45
Joined Apr 2016
wabu27 started this thread Just did a calculation and my monthly recurring expenses total $3000. That's 8% from my current balance. Every month, just to have buy something such as food, I need to make more than a 8% return. Anything short of that will be trouble. Negative months will be trouble. I think I just truly realized the seriousness of what I am doing. I am literally standing on the verge of a cliff, trying to balance myself while doing two things simultaneously: working full-time and secretly trading stocks. If I end up with a loss like I did today, that is a seriously blow to my account that could screw my whole life up.
This is the biggest and the boldest thing I've ever done in my life of 24 years. I might look back and regret my choice. I'm really not sure if I'm actually sane at the moment. All the logical thinking in the world is telling me not to do it. It's telling me to return my loans and go back into my stable lifestyle. Build little by little, no matter how long it takes. That is what a sane person would do. That is what a "normal" person would do. Yet I think I have it. I think I can pull it off. It just doesn't make any sense at all but I really think I can do it. And I think I'm going to regret it if I indeed had what it took, but did not believe in myself to go through with it. Not trying to be cheesy but the saying "do what your heart tells you.." When you like a girl go for it. When you want to go on an adventure go for it. When you love something so much go for it. People call that courage. I don't think the saying applies in the way I'm going to use it, but yea... there is something that's just telling me I can do it. Tomorrow I'm going to give my 2-week notice. I'm going to trade full-time. All I've practiced, all I've studied... either I perform or I don't. It's a true do or die situation now. Its not a game anymore. It's life itself. Let my 20's truly begin.
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