The Rookie Trader - $2000 start Canada

[Prainluda]

I love the stock market and I have hardly ANY knowledge in trading stocks but ill update you on my progress and lets see where we can go!

$2000 Start

Trade#1
Bought Prophecy Coal Corp 3900 shares at .49
Sold Prophecy Coal Corp 3900 shares at .435
Total Loss about $275 after loss + commission

2000-275 = $1725

Lesson #1 I followed that stock for a long time and I know the bottom is .40 it has hit there twice in the last 5 years. Also the stock dropped from .54 to .49 which is a price I wanted to get in at. If I were patient im sure I could have recovered the loss.

After the loss I did some studying and realized that my entry point was horrible. My overall knowledge is not all that much. But im starting to see some cool stuff the more I read and learn.

Trade# 2
Will reveal company name later
Bought 640 Shares of a company between $2-$3

From just my small amount of reading on Bollinger bands MACD, I saw a sick entry point into a stock. As soon as I saw the stock chart I felt my stomach grow with excitement and I knew I had to buy that stock. It went down the first day I owned it. The second day it jumped alot. I bought it at the start of a rise. So as long as it can hold on for awhile I should be making abit of the money back that I lost already. I feel like my knowledge gained after the first trade is great.

 

[Prainluda]

Some good points so far:

-If I didn't take the loss on the first trade then I don't think I would have been studying as much. So in reality the loss actually was a good thing for me. If that makes any sense.

-Not to try to recover my losses from the first trade in this second trade. My goal is to win every trade I do. Sure if I can recover the losses that's fine. But the key is to not be greedy. Get out at the right time and take a gain.

-The Stock market can be viewed like poker in a sense. If your bankroll goes down, don't tilt and throw it away. Start to win hands here and there and get back in the game. Stay patient and limit your risks.

We will see where this second trade takes me. I know I should put a stop limit on it. However I feel like if the stock goes down the ill just hang on. Maybe beccause the first trade I lost, so I feel like in this situation Id like to take abit of profit even if it takes awhile. But ill consider this weekend as I do feel like I bought the stock at the start of a rise. So if im confident I made the right move then maybe a stop loss is fine?

hmmm Just gave myself the answer!