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Josh Dunn

Daily Recap: Kicking Off the Week with a $31.50 Profit

Today marked the reset of my paper trading account to $1000, and I’m pleased to report a strong start to the week with a $31.50 profit, bringing my account total to $1031.48 after fees. I’m treating this account as a real cash account, trading strictly with the available balance each day.

Despite only executing one trade today due to using $990 of my account balance, it was a thrilling experience. I entered the market shortly after it opened, and the price fluctuations were rapid. I didn’t set a stop limit, which, in hindsight, could have stopped me out at a $20 loss due to a brief price dip.

Let’s break down the trade:

Stock: CSLR

  • Premarket Insight: I focused on CSLR due to a positive news catalyst and substantial volume, making it the standout option.
  • Market Open: As soon as the market opened, CSLR experienced significant volume influx but also faced heavy sell-off from premarket profit-takers. The stock was highly volatile, indicated by large wicks on the candles.

Trade Execution:

  • Entry: I observed more buying pressure than selling and decided to enter at 7:31 AM. I placed an OCO (One-Cancels-Other) order at the ask price ($2.20) with a 10-cent offset to ensure my order was filled if the price continued to rise. This strategy proved effective, as I got filled at $2.20.
  • No Stop Loss: Given the volatility, I opted against a stop loss, despite the nerve-wracking price swings. The price dipped enough to have triggered a $22.00 loss if I had a stop, but I believed in the buying momentum.
  • Accidental OCO Order: As the price began to rise, I intended to set a stop loss at $2.18 but mistakenly placed an OCO stop loss order with a 10-cent offset. This resulted in an immediate sell at the current price, which was within the offset range. Fortunately, I sold at $2.27, securing a $31.50 profit.

While I could have potentially sold closer to the high of $2.35, I likely would have moved my stop loss to take profit around $2.25 - $2.30 anyway. This turned out to be a prudent decision as the stock price plummeted quickly after hitting the high.

Overall, I’m satisfied with this trade. It was a quick momentum scalp, and despite a mistake with the OCO order, it worked out well. I’ll make sure to switch my template from OCO to Single next time during my stop loss setup.

Reflecting on today’s trade, patience and careful observation paid off. Here’s to more successful trades ahead!