Trading Experience (ejr39)

Many of the club members wish to see immediate results from a new strategy; unfortunately, the same individuals are being blindsided by their lack of experience to make appropriate decisions for that strategy. Paper trading is FREE and allows you to say 'been there, done that'.

Paper trade each strategy that you adopt; document EVERY paper trade: What went right! What went wrong! What was the volume at the time you entered the trade! Does the time at which you enter or exit affect the strategy’s profitability! Be sure to include general market conditions in the documentation. Document any changes made to the

PCFs and EasyScans!

Ask the strategy’s sponsor what you are missing if the adopted strategy is less than 30% successful during the first 5 days. The answer may be as simple as a PCF error. Or failure to identify the trend. Or an unquantifiable pattern – c&s, h&s. Or the strategy’s default criteria doesn’t match your trading style. Or the strategy is incomplete. Or the strategy was an untested idea.

Paper trading is FREE and gives you the opportunity to determine if a strategy fits your style i.e. as a CANSLIM vestor are you adept enough for bottom fishing the under $3 stocks (not intended as a challenge but as an example).

For each strategy, paper trade at least 5 trades per day for 1 month (21 trading days). Until you have 100 documented paper trades for a strategy, don’t use green paper.

After 1 month or 100 trades, try green paper but continue with at least 5 trades (both white and green paper) per day.

The additional trades help to refine YOUR strategy, to keep your attention focused on the strategy, AND to build the additional confidence necessary for successful Options trading.

Get good at one strategy; that strategy is your ‘bread and butter’ every trading day. Develop 2 or 3 additional strategies one for a custodial account (IRA, 401K, annuities); another for building a ‘blue chip’ portfolio; another for ‘aggressive’ trading, etc.

Once you’ve established several solid strategies, additional strategies get easier and easier; you’ll understand the anatomy of the strategies that fit your style - ‘cause you’ve already been there and done that.

Invest well and prosper!