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 : 56
Total Capital added: $250.00Trading Acct Balance: $4347.77
Average Drawdown: $173.14
Average Loss: $264.74
Average Accuracy: 83.93%
Average Risk: $185.11
Average Reward: $111.31
Average Risk/Reward : 1: 0.601
Average Accuracy: 83.93%
Average Risk: $185.11
Average Reward: $111.31
Average Risk/Reward : 1: 0.601
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 $0.595. 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 intra-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 intra-trade drawdown.
Below is a chart of my 2021 percentile gains
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The above chart shows that the trading account has been down most of the year to date.
Below is a chart showing my overall percentile gains from January 1, 2016, to September 26, 2021.
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Conclusion:
I have not gotten the results that I have wanted over the last couple of years. This is evident in the long roughly flat line in the chart above.
I need to gain better entry points and to make sure to use a stop loss. In the trading platform for my brokerage, you can put in a stop limit order when purchasing a stock via a bracket order.
Note: The trades are listed under the Trading Tab above with all the trades listed as of September 26, 2021
Note: As of September 26, 2021, there is no active trades.
DISCLAIMER
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.
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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