Monday, December 1, 2008

My First Trade With Another's Funds

As promised, I am documenting my trades as I invest for a very fortunate friend. I convinced him to let me have $25,000, as this is the minimum for my broker to allow day trades. I don't believe in day trading, but if I get stuck in something, I want to be able to get out of it quick, especially with someone else's money. So, with margin, I approached the day with $50,000 to invest.

Stock Assault triggered no trades today, which is excellent because the futures called for a blood-bath. Since I don't short stocks I was only left with inverse EFT's to choose. The most wildly swinging index, IMHO, is the Russell 2000 (RUT) and the best EFT's for that is the UWM for a long play, and TWM for a short play as it is the inverse. This means that as the Russell 2000 goes down, TWM goes up at 2x the amount. Sweet.

So I put in a limit order this morning of 112.23 which immediately filled giving me 445 shares. Well, late in the afternoon, I sold those shares for 132.56 for a gain of 20.33 per share, or about 9046.85 dollars. So my first trade was net 18.09 %. What a way to start the week off! My friend, of course, is very happy making a little over 9000 dollars when the Dow was down over 600 points.

I won't disclose our arrangement just yet, because we really don't have one, but he has promised to take care of me. He really has no choice since the money is sitting in my account. I'm looking forward to putting a new lot of 34,046 dollars to work tomorrow on a Stock Assault pick.

Have a good one!
- Roger

2 comments:

  1. Almost every time that SA triggers no trades, it's a big bear day. Every time SA triggers even one pick, it's either just a single bad day or a decent really.

    SA is better than:

    1) charting
    2) pattern identification
    3) freaking blogs where people are screaming about every which way

    SA is saving me my sanity knowing that it's right more times than it's wrong.

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  2. I noticed that no-signal days are really bad days in the market also. It sure helps save my sanity with all the garbage out there nowadays. Stock Assault is definitely a sanity-saver.

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