Thanks to a popular Hollywood movie, chat room member Devin was drawn into the stock market. His first pit stop in the markets was the wonderful world of penny stocks where he wandered around surrounded by sharks and wolves. Devin was given some money by his Dad to assist in his trading, so did having more money at his disposal make trading any easier? The crazy thing is, Devin hit some good solid home runs, yet, despite this, his account kept bleeding in the southern direction. There is lots to learn in this trader’s journey.
Notes:
Devin’s introduction was actually through his father. A good thing about this experience was his dad was never obviously upset or overjoyed by the positions he took. He remained even keeled from what Devin could observe.
After watching the Wolf of Wall Street, Devin started to research penny stocks and ended up in a penny stock chat room. Using a tax return from the previous year amounting to $500, he began to aimlessly gamble as many do when first starting to trade.
Devin’s father gave him and his twin brother some money to help aid them in taking their financial future in their own hands. This is a double edged sword because even with the best intentions, Devin could now trade the same way he was in the past but with larger size.
As time progressed, Devin transitioned to trading a small basket of stock utilizing their options which is very friendly to a smaller size account. He has found more consistent success swing trading advanced options since it requires much less management. This works well for him as his day job responsibilities have increased greatly in the recent months.
Quotes:
“I wanted a place where I could find stocks. I would just sit in there and wait for someone to say something.” tweet this quote
“I convinced myself that I was learning with each loss and I was going to get better from it.” tweet this quote
“I was always hoping for that home run. I started to realize for every home run there is 3 strike outs. Slowly my account dwindled down.” tweet this quote
“I was being much more careful but something still wasn’t clicking but I was disciplined enough to cut my losses quick.” tweet this quote
“One issue I had with penny stocks was buy and hope for the best. I didn’t even think about what would happen if it went against me.” tweet this quote
