Saturday, December 28, 2019

Trading Account Update : December 28 2019

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                               # of trades :                        49
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3588.18
                               Average Drawdown:          $111.57
                               Average Loss:                    $287.20
                               Average Accuracy:            83.67%
                               Average Risk:                    $127.31
                               Average Reward:              $109.23
                               Average Risk/Reward :      1: 0.857

        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.857.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is inter-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have inter-trade drawdown. 

Below is a chart of my 2019 percentile gains

Click to Enlarge

Below is a chart showing my overall percentile gains from January 1, 2016, to December 28, 2019. 

Click To Enlarge

Note:  The trades are listed under the Trading Tab above with all the trades listed as of December 28, 2019

Note:  As of December 28, 2019, there is no active trades. 

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

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