Moving forward into the second trading day of this week, I was unable to trade from my traditional trading station. Being away from both my laptop and desktop computer put me at a significant disadvantage, and almost convinced me to not trade today at all.
But then I thought…
What’s the fun in that?
Also, knowing that in the future I may be put in this position like this routinely, it seemed like a good idea for me to get some experience trading from my smart phone.
Here’s how I did:
$60.10 profit (Daily Goal: $50)
I am surprising impressed with how well I did today, I really had to focus on a number of things that I will talk about later on in this post.
Here is a snapshot of how my trades looked on the chart:
While the actual chart of my trades is not pretty, you can see that I did a good job of averaging into my positions and selling quickly when I had a nice profit.
As you can see, I was trading with a little more risk today.
First, I did not have a proper trading station to allow me to clearly see all of my indicators and price movements.
Second, I traded against the overall trend of /NG because I thought that it was overextended and offered a potential for profit on the downtrend recovery.
Both of things that could have led to my failure today, and this post would have been about how to cut losses instead of how to trade from your phone effectively.
So, here are the 3 keys that led me to effectively trade from my smart phone today:
Key #1: Understanding Direction and Potential for Profit
Today, I understood that /NG was an overall uptrend pattern for today.
However, at some points it seemed to get a little overextended, which gave it potential for profit on a pullback.
A pullback is when a stock pushes up aggressively, drops for a few minutes, and then continues to rise.
Trading the pullback is risky and I would not recommend it for a new trader without proper knowledge or experience with it.
By trading the pullback today, it allows me to take advantage of slight opportunities in the moment, so that I didn’t wait around very long for a huge break out.
Key #2: Paying attention to the Bid and Ask Spread
This is important when beginning the process of confirming the direction of the stock.
The Bid and Ask spread tells you the amount of buyers and sellers at a specific price point.
If the Bid and Ask spread is high, then the stock is probably volatile and it is a lot of difficult to determine which direction that it may move.
However, if the stock has a lot of buyers, then that may correlate to a jump in the price, although it doesn’t always have to.
and vice versa with sellers.
Key #3: Knowing when Lock in Those Profits!!
Because I was trading against the trend, it was important for me to lock in profits at any sign of a resistance.
This meant locking in profits a little early in some cases, although still green.
Overall, I had a lot of fun with it being on of the first days that I traded exclusively from my smartphone and I hope this experience provides value to you to help you become a more successful and consistent trader.
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