Tuesday, October 13, 2009

My Trading Mentallity

I'm still some what new to trading so please bear with me. This would be considered my trading mentallity. I spoke with a friend recently and she told me she had bought stock back in 2006. In 2007 and 2008 her retail stock did very well that is until the stock market crashed, and her stock still has never recoverd. It took just a few short weeks to go into negative numbers(I dont have exact numbers but I believe she trippled her money or so she says and lost it). She told me to stay away from the stock market. I started studing candle stick charting made a few successful trades, and wanted to show my thinking verses my friends. Alot of people I speak with have this mentality to be a bull where they are only interested in long term investment spanding over years. Me I want to get in, get out, go big and go home.

Below illustrates my investment with SLV which is an ETF which represents silver. on September 25th I bought 200 shares of SLV for 15.88. Two weeks after SLV started making highs over 17 to be exact the highest we have seen was 17.52 then following day 17.42, and today 17.48. I beleive the SLV might reverse soon so I put a stop at 17.00, so if the SLV goes down to 17 it will automaticlly sell securing 1.12 points worth of profit. If SLV starts making new highs again I will eventually raise my stop. It doesnt matter what happens I will be making a minnimum of 224. So basiclly my mentallity is get in secure your profits and sit back until the market kicks you out. The bigger the risk the bigger the reward!

Click The Image Below to See the Full Chart!SLV

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