Swing Trade and Day Trade, what's the difference?

This week has been a challenge to my health. I was diagnosed with TMJ/TMD in my jaw which is giving me extreme pain. I can barely open my mouth to eat. Hoping to lose some weight! Despite that, I had a wonderful 51st birthday yesterday and celebrated with my sweet family. I feel like at 51 I have been given a gift of a supportive husband who is behind my trading 100%. Best gift ever!

My trading update is that I am up almost $150 for the week in the simulator. I took a trade in my investment account which gave me a positive gain. Slowly I am working out a strategy in the simulator and then testing it in very small position sizes in my investment account.  My philosophy is slow and steady wins the race.

In thinking about this blog post topic today I decided it would be helpful to explain the difference between a day trade and a swing trade because I will be talking about both as we journey along. In plain English, Day Trading is when you buy a stock and sell it in the same day. Swing trading is when you buy a stock and sell it the next day or over the next couple of weeks. For more formal definitions see below....

What is Day Trading?
Securities & Exchange Commission Day Trade Definition

FINRA rules define a “day trade” as the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account.  This definition encompasses any security, including options. Selling short and purchasing to cover a position in the same security on the same day is also considered a day trade.

Exceptions to this definition include:

a long security position held overnight and sold the next day prior to any new purchase of the same security; or
a short security position held overnight and purchased the next day prior to any new sale of the same security.

What Is Swing Trading?

Swing Trading

Swing trading is a style of trading that attempts to capture gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. These traders may utilize fundamental analysis in addition to analyzing price trends and patterns.

Most of us are long term investors looking for a stock to increase in value over the long term, one year or more. That has been my strategy for many, many years and it has worked well while I was employed full time. I am sure that is what most of you do but I want to broaden your investment horizon as I take this leap of faith.  

Namaste and Trade Another Day,

Michelle

What am I reading now?

Hello! My topic today is books. I wanted to let you in on two books on my desk right now that I am reading . Well actually one is a digital book on my computer, but my computer is on my desk so that counts right? I am in the middle of both and when I finish I will give a review of them here on the blog.

How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology by Ross Cameron founder and amazing day trader at https://www.warriortrading.com.

Trade Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting-Edge Psychology

If you know me, you know I love to read. Around my home you will find stacks and stacks of books arranged by subject. Like these art books I have displayed on a wood plant stand. It has wheels for easy portability and looks great in my entry way.

Off to start the trading day!

Namaste and trade another day, 

Michelle 

What's Paper Trading?

Some of you have asked "What is paper trading"?

Paper trading (sometimes also called "virtual stock trading") is a simulated trading process in which would-be investors can 'practice' investing without committing real money. This is done by the manipulation of imaginary money and investment positions that behave in a manner similar to the real markets.

I am using a simulator right now so that I can learn how to day trade with out risking my own 
capital. I joined Warrior Trading and that provided me with access to their simulator which I can use to trade in real time. You can see these two pictures of my trading screens. This was on my first day of learning what all the fancy charts and buttons meant. :)



During the course of my learning journey I have set goals for myself to meet. My current daily goal in the simulator is to make just $50 a day. This would provide me with $1000 profit each month. Once I have mastered $50 a day, I will up my goal to $100 a day providing me with $2000 a month and so on.  I think within 2 to 3 months I will be able to switch to investing real money.  Since I want this to be my full time career, I am willing to take my time and learn how to be a professional trader.  

Thank you for coming along today. 

Namaste and Trade Another Day,
Michelle

Practice Makes Perfect...

What an amazing day! I finally made myself sit down in front of the new computer and learn how to use the stock simulator. Watched a ton of videos and practiced for several hours live during market hours.   

Guess what everyone? I LOVED IT!  

This day confirms my love for the market and stocks. I have had a lifelong passion for stock trading but I went about it from a Financial Advisor/Stock Broker approach, assisting others in their financial planning. Finally at 50 years old, I am doing it my way, for me! I am hoping to acheive a level of financial freedom that is not possible when working for a corporation. This comes in two ways; one- The knowledge of trading for my supper, (aka making a living)
two- Having unlimited income potential.

Of course all of the years I have spent learning about personal finance has given me a unique perspective that I'm so grateful for. I encourage you to look at both sides of your finances and examine your wants and needs. It's not all about what we make, it's also about how much we spend. I have found that being grateful and content with what I already have to be the biggest obstacle to my personal finances....... Anyone else have that issue? 
What I mean is:

The home office is shaping up nicely. I have a dual purpose when my girls visit from college, this room serves as a get a way for them as well. So I wanted it to have a So Ho vibe. Thought these prints captured it well.

Haven't gotten them hung up yet! More pics to come when I do......

Namaste and trade another day,

Michelle 

Day 2: Distractions, distractions.....

I have to be honest, I let life get in the way of my morning trading. We moved to a new city 3 weeks ago and my children and I have been making a huge life transition. So this morning my son needed me and I had to put his needs first. After all, that is what I am here for as a mom and a huge part of the reason I am working from home.  

However, at lunch time I refocused and started work in my office. The computer set up is coming along and I have my work favorite sites bookmarked. 
For example, 
https://www.warriortrading.com
https://finance.yahoo.com
https://www.investopedia.com
https://finviz.com

Reading is critical for my job as a day trader and one book that has come highly recommended by my mentor is: 

Trade Mindfully   by Gary Dayton, Psy.D.

Started this book a few days ago and it is spot on so far with regard to the psychology of trading. I admire how the author recognizes mindfulness as a key component of stock trading. This ties into my philosophy of keeping the mind and body in the present moment in order to live our best life.

The rest of the day will be spent reading and spending time with family. Planning a family dinner tonight with my husband and kids. 

Namaste and trade another day,
Michelle 

Hello and welcome to my trading blog.  I hope you are not looking for the usual finance blog because if so, you are in the wrong place. However, my back ground is the typical finance path - Finance degree from University of Central Florida, MBA from Union University,  FINRA Series 7 & Series 66 designations. I have worked as a professional Financial Advisor/Stock Broker for Merrill Lynch, Duncan Williams and Empower Retirement. Having written all of that, you should know that my professional goal is to never work for a corporate financial institution again...ever.

So naturally the next logical question is: How will I not be dependent on corporate again for my income? My answer: Stock trading for myself. 

Let me tell you quickly about how the corporate world sucked the life out of me, quite literally. I won't bore you with extreme detail but I did find myself in the emergency room twice due to job stress in May, 2019. My heart rate raced constantly and I felt that I was going to have a heart attack. I was diagnosed with an anxiety disorder, panic attacks, gastritis and depression. The solution was for me to take prescription medications. Oh and if that didn't work, try increasing the dosage or a different brand of meds. 

I began to realize the company I worked for did not value me in any way. They only valued the amount of revenue I could bring in and if I could not bring in the goal amount they arbitrarily set, probation.... performance plan..... firing.... This not only happened to me, it was happening to my co-workers as well. My health suffered to the point that I had to take a short term disability and medical leave from work.  Medical leave & disability lasted for 2 months and during that time I had the good fortune to be able to rest and think. Now I am 4 months out from my emergency room visits and I can write that I clearly know the path I am supposed to take. 

In this blog you will be able to hear my authentic voice. I will be true to myself and the energy that is propelling me to make this drastic change. Please remember I wear many hats but writing is new to me. Here I will not try and impress you with my words or writing style. The goal is to record my journey and share with anyone who wants to come along for the ride.

You will learn a lot more about me in the coming months and years we have ahead of us. I won't spoil it and give you my bio all in the first day. Let's just settle in and celebrate courage and freedom together. 

Namaste and trade another day,
Michelle