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Trading vs Investing

when it comes to day trading it’s often looked down on by “investors” but the difference is simply time. While some may say an investor is helping fund a business and sharing in the profits, this is hard to claim at current Cap levels.

I am no Warren Buffet my investments are so small that no-one knows or cares about them. They aren’t moving the market, so i don’t think i am supporting or shorting anyone. That being said i don’t like to short companies long term.

Investing

Basically long term. Investing is longer than 3 months, you put a few thousand in Tesla and in three years it’s worth a lot more. This is a great way to build money with lower risk if you have a long time frame. You could also lose it all if you pick wrong and invest in block buster video. The idea is to find a company like microsoft in the 80’s, or Amazon five years ago. I’d be thinking solar energy, other EV car companies. You could also buy a coron-virus damaged blue chip, like Natwest, but don’t buy cinema stock.

Trading

Often called “day-trading” it’s very short term and in theory works well. If you invest ,$2,000 in NIO it might go up 20% in the year. I have seen shares go up 19% in the day. if every day i invest in something that goes up 5% a day, in the week i’ll have made 25% gain. The problem is finding them, many shares goes up and then down, no one know how they will move. Shares can even drop on good news, like positive share prices. While day trading is hard and i think more stressful for me, i like it more basically because i don’t like the pre-market.

Last week fastly dropped 29% in the pre-market on some bad news. Yesterday Logiteck went up 20% in one day on earnings and i bought in my test account. Not real money sadly it was a test, it dropped 4% during the day, but i sold, and investor would hold it and lose the very high gain.

Why i don’t buy the day before earnings

Once if you can believe it. I bought amazon the day before earnings. It jumped up 5% and i made a tiny little sum. Now it scares me to think of that. So much risk on the hunch they had done well in crono, even after spending billions in their workplaces. I then thought this was a great idea and i tried it more. Etsy down, alibaba down, nvidia down, domino down. I almost got johntson and johnston but stopped myself.

The crazy thing is they also have a trial cancelled today. The bad new is not just earnings. If you’re like me and your a new croro virus made day trader, it’s a learn by mistake process. I come to find prices can drop even on good news. Now i am trying a buy on good news. I will try “Blackrock” they are up 4.5% in pre-market.

How i day trade with $2,000

warning: i am a lucky amateur, this is not advice but how i do things, which is probably wrong!

I have read a few things like “how much do you need to start trading” but if you can save up two grand and and are happy to lose at least $500, then you can start trading on a platform like Etoro. Now some say trade fake money for at least 6 months first and this is a good idea. You need a method, plan and be ready to lose money.

Here are my gold rules learned after major hits.

  • Don’t leverage
  • Hold week max
  • Never lower stop-loss
  • Never “trust” the market
  • Set profit target
  • build investment plan

Some say you need $25,000 grand to start but that is to trade on wall street. I also set goal for myself in $100 profit a day, once i hit it, i am gone. I also set $100 loss a day. Some days are just shit. I don’t trade every day and maybe you shouldn’t either. I bet election day is crazy and day when they announce job placement figures etc.

My method

Here what i do. – trade on news and sales figures. I know on thursday before open that ZOOM is going to give results. It’s great news and their share price is up 8% in pre-market. (i get news via google alerts “pre-market” and check “nasdaq.com” pre-market results which is live. Oh why didn’t i buy last night. Because the market is like a madman and reacts differently to the same input. It could have been dropped 8%. Loss potential profit is not loss.

I assume zoom will go up ( based on evidence) . I set a “buy” order for $2,000 and my stop loss for $50 and my take profit for $100. Now i am paying zero on Etoro if i don’t leverage, and don’t hold over night. The share drops as it opens as profit takers hit and drops 1% (-$20), then 2%,(-$40) but then goes up 5% over and sells. I made $100 and often his happen in five minutes if you buy when the market opens. 5% of 2,000 is $100. You will often see shares going a lot high than a 5% gain. You might like to ride it up higher, i have seen shares go up to +17% or drop -40% so if brave change you stop loss to +$50 and keep an eye on it. I sell when i get scared. (very scientific).

If it goes down and then later, probably up it’s very annoying but never change to a lower stop loss. You can buy again. If shits dropping i sell fast and buy back, it’s free and you’ll be shocked at how fear can make things drop. Imagine i buy tesla and it drops by 2.5% and hit my stop loss at (-$50), you just lost $50 dollar, the pain, but it’s a lot better than -$500. So if you like tesla keep and eye on it and during the day you see it drops to -8% then starts to go back up. I buy a fake money lot at this point and see it it’s going up from here. If you buy back lower than you sold, great.

If you lost $50 then it’s time to pick the next. i just watch what is going up and buy in fake money. If it’s still up in an hour. i buy. In $1,000 lots and $25 stop loss. i either get my +$100, or i stop at -$100.

To lose $100, three trade had to fail, that is going down when i thought up. Now long term trading takes a lot of the risk out. It annoys me that people get on there high horse and act like day traders are idiots and gamblers. Of course it easier to say “yes NIO shares will go up in the next five years” than “they will go up today,” and that is a gamble but it’s based on evidence. Everyday some shares are going up 5%, 10%, 15%, 20% and tens of them are. A great day trader will out earn a great holder. A lot of new traders like me are just lucky idiots, but investing is getting easier and easier and it’s not brain surgery to see what is going up or down.

Investment plan

It gives me some confidence to know what i want to buy and why. If you are like me you trade on news and reports. Nasdaq.com has a great service that tells you what days companys announce earnings. I like to take two or three big companies a day and put who i will watch.

Monday: Zoom, UPS, SUNRUN

Now i don’t buy the day before because i never seem to guess right. Often i miss “Zoom jumped by 30%” that really happened. But many also drop, Dominos dropped 7% on good news and so do many. others Every morning i look at my list, search news and scope pre-market. so i see zoom had good figures and are up, so i buy. Now if you are very brave, you set a higher stop loss because sometimes it drops on open, or you can just wait and buy if it is going up, you’ll miss some growth but it’s less risk and it almost always drops a bit on open.

Buying the rumor.

The great thing about etoro is you can buy fake shares. What i like to do i buy 10-15 lots of 1,000 share on monday that are part of my plan for the week. Often if zoom is anncouncinng figures, that week. they will have a massive day before then. Often you can buy before and after they have good figure but don’t hold at night. People normal try to buy a days before they announce. Often you will see share price go up, before news then drop, then go up again, so look out.

Free things i use

So if you save $2,000 you too can invest in shares. I recommend Etoro as they are free (no comission) for day trade and have a great app. So you can buy and sell from anywhere. I also recommend.

  • google new alerts: “shares jump” “pre-market” “NIO” ect
  • Nasdaq.com “pre-market sales” “earnings calandar”
  • Motley fool, if you can afford join their mailing list do
  • Investopedia, callum silver is smart and has a free email and podcast

Good luck and be brave.

Green Homes grant UK

Many years ago (like ten) Australia had this program where they would give a company $3,000 to put insulation in your house. It too was during an economic downturn and did get a lot of people working. It got cancelled though as a few people died in hot QLD rooves.

Now the UK is at it with the “Green homes grant” launched sept 2020 and i for one bloody love it. Here are the details.

Primary measures: up to £5,000

Insulation measures

The following insulation measures are covered by the voucher:

  • solid wall
  • under floor
  • cavity wall
  • loft
  • flat roof
  • room in roof
  • insulating a park home

Low carbon heat measures

The following low carbon heating measures are covered by the voucher:

  • air or ground source heat pump
  • solar thermal (liquid filled flat plate or evacuated tube collectors)
  • biomass boilers

Secondary measures up to £5,000

  • draught proofing
  • double/triple glazing (where replacing single glazed windows)
  • secondary glazing (in addition to single glazing)
  • external energy efficient doors (replacing single glazed or solid doors installed before 2002)
  • heating controls
  • hot water tank thermostats and insulation

The amount you get towards the cost of secondary measures cannot exceed the amount you get for primary measures, so spend the full £5,000.

Fine Print:

Now if you are low income and on befits you can get 100% covered if not 80% which is great still. try this, you get £5,000 worth of insulation, roof, walls, floor, all eco-friendly.

Then you get $5,000 in double glazed windows, new doors, draft proofing. If you spent all, your bill would be £2,000 out of pocket. The best outcome is you have reduced your household carbon footprint. You electric bill will drop and you’ve increased the value of your house.

Apply:

You can apply for the voucher at the website and applications are open at the end of sept. Right now it is un-clear what it covers in terms of dual invoicing and an energy audit. What would be best would be to hire an energy specialist and they organise it all. Still here are a few good options for eco-friendly insulation.

Warmcel

Made from 100% recycled paper. Warmcel is a cellose based blowing in insulation. They give training to the installers and because it’s a hose and blown in they can do hard to reach places like floors and walls. They have a nation wide network of installers.

https://www.warmcel.co.uk/warmcel/installers

SprayFoam:

This is a foam that expand like that stuff in a can. It claims to be eco because it’s harmless chemicals but i’m not sure. It here an option.

https://www.sprayfoam.co.uk

Thermofleece:

I don’t know if the voucher covers supplies to d.i.y it might, or this company might start to offer an instillation service, or your installer might be able to buy from them. If you want some insulation made for 100% british sheep wool, here it is. Looks nice.

https://www.thermafleece.com/

Solar thermal:

If you have a good level of insulation already, solar can be a great idea. In the UK it’s not like to remove your energy bill but it can lower it a lot. Also it can increase the value of your home, lower your energy bill and lower your carbon footprint. If you can get a solar battery included that is great.

www.https://jpsrenewableenergy.co.uk/

When the program is launched in full i will be applying for it and thus i will update this.

Mistakes made – Money lost

The problem with learning as you trade is lessons cost money. I had to learn something dumb can work out well once, by luck, but that doesn’t mean it will again. I am sure that how many will view my trading style!

Once about a month ago, i saw Amazon was due to have their Q2 Earnings after market, i assumed it would be great and everyone would buy. So before close i bought 2,000 * 5 a very scary investment for me. The news comes in they rocked it and the pre-market bought, so when the market opened my shares jumped up 5%. This was about $500 after some losses during the day. It all worked, so i think this is a great plan, but it’s not.

The market is insane

The stock exchange is not a sane person, it is crazy. It will do things for reasons you can’t guess. I lost money on Etsy, Alibaba, Vipstore, Macy’s and more. A good earning might still drop if it’s not good enough or it’s already over-sold. The tactic i now use is buy on my test account, stocks i like and stocks with earnings last night and that morning. If they are going up i buy and if they go down i watch.

Etsy, Nvidia, alibaba, all had one shit day and then rocked. Idiots like me lost money and proper traders waited and bought low. Now we have zoom and it moved by 40% which is insane, so i think i should be in it again, so tonight i will try something new.

Crowd sense

Docusign might go well, they have after close earnings and are riding the work at home thing, but they have also got very well until now, which is bad. Zoom did well because it was treated like shit for ages then people realised it was awesome. Now tonight at around 8pm i will buy Docu. If it’s a good idea, other will and it will go up. If it goes up i will hold, if it drops i will sell, i will update this tomorrow.

I don’t think anyone is reading this but it’s good for me.

Losing money waiting for a correction

So i am a big fan of Tesla. I have lost and made a good amount on this stock and keep an eye on it. In my test account i bought $1,000 x 5 on 19.8/20 which yesterday was $2,500+. A lot of people are losing money while waiting for a correction. This is how this idiot approaches it.

In real life i was holding on monday $2,000 * 5 and sold too early but i made $750 across two accounts. I sold when it was 5% up. Then it went up 12%, damn it. I was out and watching, it dropped -5% next day, then Wednesday it crashed 18%, i bought back in at -15% and nearly died of fear (-$400) and got more at -18%, this took guts but i saw it starting to go back up. It went back to -7% around 447, and i made $500, and reversed my loss.

Now it’s ready to open and i think it will go up, but i am not holding it. as i sell at night before close.,because i don’t like this after market shit. So i am an idiot but i have made more than $1,000 in a week from Tesla. Yes it’s over priced, yes a correction is coming but day traders should be safe (ish) . With Tesla people ask the wrong questions, should i buy, hell yes, when it’s 18% down, Tesla is not a bubble. they will still be here and making money in ten years. Do you think with our current move to EV they will sell less in the coming years? they also sell awesome power walls, solar cells, solar tiles.

People buy on news and this is what Tesla has coming.

  • Joining S &P
  • Batteries day (sept 22)
  • Selling $5b in stock, nice of them not to issue new stock but sell existing and help us.
  • every quarter they make money
  • they are winning the race to driverless
  • they have an exclusive deal with sun run

If you are a day trader, you’d be mad not to watch this stock and buy and sell it. If it drops be willing to take a hit and make it back. On weds i bought at -10% it fell more, i sold fast and ate $-120 loss but bought at the real bottom of -18%. A stock that moves 10% in a day is what we love.

  • Julius is a crazy day trader and often has Tesla positions.