Hey Guys,
I had six positions close for a profit this morning. SPGI hit its time limit so I locked in a nice profit on that. And my DHR, PYPL, and STE stock positions all hit their profit targets. Also my EBAY and DDOG options hit their profit targets. Since Tuesday, it seems like every time I check, my account balance is higher.
I bought EFX and DGX stock positions this morning. Both were really volatile due to recent earnings announcements. With DGX, the price immediately went against me and got almost half way to my stoploss within minutes. Then it turned around and went up and as of now it's about half way to the profit target. And with EFX, the price went straight up after I bought it. Within minutes it was already showing a strong profit.
It's not typical for stock prices to rise that quickly after I buy them, but sometimes it happens. I think it's helpful to remember that it goes both ways. The ABT option I bought this morning, for example, went down substantially after I bought it. Also, most days there are not earnings announcements. That is what caused these tickers to move so much after I bought them.
I studied a period of my live trades to try to find out what the effect on profitability might have been if someone had gotten into the same trades later than me. I show the results of the study here. It shows that they might have earned a net profit percentage similar to mine. That period of trades included ones just like EFX and DGX, where the stock price shot up right away out of the gate. It also included ones like ABT, that went down out of the gate. The study suggests that essentially it goes both ways -- sometimes you can get a lower price than me and sometimes you might get a higher price than me. And in the end, the net profitability might be comparable to what I end up with. Understanding that might be helpful for keeping things in perspective as you follow my trades.
If you have any questions or feedback, I'd love to hear from you.