Posted by fluffycone on 4th of Apr 2016 at 02:51 pm
I am looking for constructive criticism. I hope this is
the correct forum for this. If not, please let me know.
I had planned to take a long on SH on 2016 Apr 01, but SH gapped
at the open to 20.575 but filled the gap during the day and hit a
low of 20.260. SH closed at 20.305 (2016 Apr 01).
As I saw the gap filling and then bounced up, I put in a order
to buy 100 SH and the order was filled around 12:00 or so @ 20.403.
I believe a rule would have been to put a stop at the low of
2016 Mar 30 of 20.29. But I did not put in a stop order.
I wanted to give it a little more room to around 20.21.
Today (Monday, 04 Apr 2016 at 2:40 PM), SH has dropped to 20.27
and then progressed to around 20.38.
Breakeven for SH would be 20.403 with Stop at 20.21.
The 20.403 does not include transaction fees of $7.00 in and
$7.00 out ($14.00 total). Broker is Scottrade.
Thank you taking the time to offer educational constructive
criticism.
Troy: Quick answer is to simply set parameters that are in
accordance with your style. There is NO set rule based upon your
entry last Friday as you bought the pullback after the gap higher.
I'm limited here as my ISP keeps going out.
Posted by fluffycone on 4th of Apr 2016 at 04:39 pm
Thank you to all the feedback.
Steve: I would consider my style to not be a daytrader.
Since I work full time, I would like to assess the charts,
place a trade, adjust stops accordingly, and then let it run for a
few days/weeks. Plus I am limited by the rules imposed by
Scottrade for PDT. There might be other brokers available,
but I have not assess them yet and that is a whole other
discussion.
From Scottrade:
3 Roundtrips until PDT Threshold, Scottrade does not promote day
trading.
Day Trading Overview
When you continuously buy and sell investments within a very
short time, perhaps a few minutes or hours, and rarely hold them
overnight, you're considered a day trader.
Counting Day Trades
The Financial Industry Regulatory Authority (FINRA) has
implemented strict requirements for accounts that actively day
trade. To identify these accounts, FINRA has defined a Pattern Day
Trader as someone who completes four or more day trades in a
rolling five business days.
Day Trading FAQs
What is the definition of a "Pattern Day Trader"? What is a Day
Trade? Will Pattern Day Traders be required to have a margin
account?
Your issue is the the FTC rule preventing daytrading for
accounts under $25K in funds. There is no work-around for it. If
you are close to making a third day trade within a week, you will
have to hold your position overnight to avoid the third day
trade.
You could google yourself for definitions you are asking Steve
for.
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SH - Educational constructive criticism. . .
Posted by fluffycone on 4th of Apr 2016 at 02:51 pm
I am looking for constructive criticism. I hope this is the correct forum for this. If not, please let me know.
I had planned to take a long on SH on 2016 Apr 01, but SH gapped at the open to 20.575 but filled the gap during the day and hit a low of 20.260. SH closed at 20.305 (2016 Apr 01).
As I saw the gap filling and then bounced up, I put in a order to buy 100 SH and the order was filled around 12:00 or so @ 20.403. I believe a rule would have been to put a stop at the low of 2016 Mar 30 of 20.29. But I did not put in a stop order. I wanted to give it a little more room to around 20.21.
Today (Monday, 04 Apr 2016 at 2:40 PM), SH has dropped to 20.27 and then progressed to around 20.38.
Breakeven for SH would be 20.403 with Stop at 20.21.
The 20.403 does not include transaction fees of $7.00 in and $7.00 out ($14.00 total). Broker is Scottrade.
Thank you taking the time to offer educational constructive criticism.
Sincerely,
Hold on to your position,
Posted by junkie on 4th of Apr 2016 at 03:30 pm
Hold on to your position, as we could have put a high today. That will be confirmed with a lower high tomorrow. This is my outlook.
Edit: you should have been stopped out on Friday. You could put your stop just below today's low on SH.
Troy: Quick answer is to
Posted by steve on 4th of Apr 2016 at 03:03 pm
Troy: Quick answer is to simply set parameters that are in accordance with your style. There is NO set rule based upon your entry last Friday as you bought the pullback after the gap higher. I'm limited here as my ISP keeps going out.
Pattern Day Trader. . .
Posted by fluffycone on 4th of Apr 2016 at 04:39 pm
Thank you to all the feedback.
Steve: I would consider my style to not be a daytrader. Since I work full time, I would like to assess the charts, place a trade, adjust stops accordingly, and then let it run for a few days/weeks. Plus I am limited by the rules imposed by Scottrade for PDT. There might be other brokers available, but I have not assess them yet and that is a whole other discussion.
From Scottrade:
3 Roundtrips until PDT Threshold, Scottrade does not promote day trading.
Day Trading Overview
When you continuously buy and sell investments within a very short time, perhaps a few minutes or hours, and rarely hold them overnight, you're considered a day trader.
Counting Day Trades
The Financial Industry Regulatory Authority (FINRA) has implemented strict requirements for accounts that actively day trade. To identify these accounts, FINRA has defined a Pattern Day Trader as someone who completes four or more day trades in a rolling five business days.
Day Trading FAQs
What is the definition of a "Pattern Day Trader"? What is a Day Trade? Will Pattern Day Traders be required to have a margin account?
Troy
Your issue is the the
Posted by junkie on 4th of Apr 2016 at 05:09 pm
Your issue is the the FTC rule preventing daytrading for accounts under $25K in funds. There is no work-around for it. If you are close to making a third day trade within a week, you will have to hold your position overnight to avoid the third day trade.
You could google yourself for definitions you are asking Steve for.