U.S. Stocks

I get this Monday off at work because it’s a holiday. The US stock market, however, is still open, and I really hope to get my trade on.

It’s been so long since I’ve been able to watch the US market live. I still have an active trading account with Interactive Brokers set up just for day trading and swing trading. My US trading account looks a lot like a backyard that needs a lot of tending to: some big glorious trees (a couple of winning stocks) among a bunch of weeds (half a dozen losers).

Regardless of its imperfections, my US portfolio has been outperforming the market all year — a huge reason why I leave my trades alone. I’ve been busy transplanting my life to a new city, anyway. Making any attempts at fast trading while busy and heavily distracted would be bad practice. The US market is full of action, but it’s a hostile environment to navigate. The payoff can be fast and big, as can be your losses. I need to be focused and ready to execute even just one quick trade. Now that I’m all moved in and my office is all nicely set up, I hope to do a bit of ‘yard work’ for the first couple of hours that the market is open.

Half of my money in this trading account has been sitting there doing nothing for a very long time. I hope to open one or two swing trades this Monday – and maybe get a day trade or two in there while I’m at it.

I did a search on finviz.com using the filters and criteria for finding stocks I like based on price and trading ranges. I found a few worth considering:

  • CARA
  • CLR
  • DKS
  • DVN
  • FL
  • NSC
  • TRIP
  • UAL

I noticed some pretty beat up stocks that would be worth considering if a shocking reversal were to happen (a VERY aggressive play):

  • LNG
  • RH

Usually, before the market opens, my brokers provide a number of stocks that are actively trading in the pre-market (before 9:30 AM). These stocks often end up being in play all day, or at least for a big part of the morning session (trading usually slows down around lunch).

My own discipline requires that I only select only a few of these stocks and watch them closely. If and when an opportunity presents itself, then I’ll do a trade that will last anywhere from a few seconds to a few hours. Day trading is not for most people and I would never recommend for anyone to even try it.

I discovered day trading is not for me either. Swing trading (a few days to a few months) and position trading (months to years) is more lucrative and a more realistic way to handle your money. I haven’t totally given day trading up because doing it every now and then (like once a month) keeps my instincts sharp. Most importantly, it reminds me of the value of never risking too much on any one trade. I might win on these trades 80% of the time, but the losing 20% can be such a blow financially, mentally, and emotionally. Losing keeps things real and really forces me to learn from my mistakes.

If the market is too volatile or my choices aren’t great or don’t open well, I might just leave the account alone and not trade anything. Always have a great Plan B so you don’t end up trading just because you had originally intended to. Not every day is a good day to trade — it’s just not something worth forcing. I might just take the holiday off and go to Niagara Falls instead!

 

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