Forty AKER and a bull – a young bull’s short-term trade
Personally Inexperienced? Yes
Penny Stock? Yes
Chasing the news? Yes
I agree, this looks like a recipe for disaster. So, why did I buy a measly 40 shares of AKER this morning at $0.46 per share. Two reasons…
1) Testing: Small trades like this allow you to test out new forecasting methods without the artificial factor of paper trading. In the case of AKER, it has behaved the exact way that I thought it would behave for the past couple of weeks. So, naturally, I have the belief that it’ll continue to behave the way I suspect it will based on my forecasting.
2) Character: Every trader has a set of beliefs and attitudes toward the market as a whole. This trade aligns with what I believe to be happening, and that is that in the short-term, AKER is going to go up.
I’m not looking to double my money by close on Friday. Anyone looking to do this will quickly be stripped of any wealth they have. I’m simply looking to complete this trade by following my pre-determined rules for this trade, not allowing emotion to play a part.
If I can accomplish this, I’ve succeeded at 1) maintaining character 2) executing a test and 3) making money while doing it.
The perfect trifecta!
The lesson I’m going to learn here, whether I win or lose, will be the importance of The Plan. My outs (both high and low) are already set, so in a sense, the fate of this trade is already determined. My part is done and it is out of my control.