Swing Trading Live Virtual Portfolio

The purpose of this virtual portfolio is to teach how to become consistently profitable by following some basic trend-following strategies. All virtual trades are posted and updated live in the virtual portfolio, as well as in the daily post/comments.

In the comments we also discuss each position as well as strategies. Our focus is on discipline and money management. Our goal is to show that by keeping losses very small and letting run our winners it is easy to be profitable in the long-run.

Summary of our strategy

  • Most of the trades are directional, naked options or stock. Sometimes we trade vertical spreads or more complicated positions for earning plays.
  • This virtual portfolio is targeted to virtual trades that we usually hold between 2-3 days and a couple of weeks.

  • All virtual trades are posted live in the virtual portfolio as soon as they are entered and in the comments as well.
  • We use different strategies in this virtual portfolio, one of them being the 5MA strategy, explained here. But we do not trade this strategy only. Most of our trades are based on technicals, support/resistance, patterns, candlesticks, pivot points etc. The constant is that we always define our stop when we enter the trade and we always respect risk management and position sizing.
  • For most positions, unless indicated, we buy ATM or slightly ITM naked calls or puts. We usually buy one month out, and never hold current month options 2 weeks before expiration.
  • R is how much we risk on each position. It is the difference between the entry price and the stop.
  • R should not be more than 2% to 5% of your virtual portfolio.
  • R is constant. It means that we should always lose the same amount when our stop is hit. If we risk 2% of your virtual portfolio on each trade and our virtual portfolio is $100K, then we should ALWAYS lose $2k when we get stopped-out. And it does not matter if the stock dropped 20% or 1% from our entry.
  • By defining our stop and our risk BEFORE we enter each trade, we can then calculate the number of contracts we need to buy to keep our loss at 1R when we get stopped-out.

An example of how we calculate position size:

Let’s say we buy AAPL calls when AAPL is at $152.25.
$151 is our stop.
Delta of the May $155’s is 0.50
Our total account is $25,000
Our risk on this trade is 2% of $25,000 or $500
Our risk is $1.25 on the stock
Our risk or maximum loss per option is $0.625, which 0.5 (delta) X $1.25 (risk on stock).
The number of contracts we should buy is our total risk divided by the risk per option: $500/(0.625*100) = 8

 

 
 
 

Phil's Favorites

The data war behind net neutrality

 

The data war behind net neutrality

Courtesy of Roger KamenaL'Université TÉLUQDaniel LemireL'Université TÉLUQ , and Nicolas ScottUniversité de Montréal

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Exploring Gravitational Waves

By joniferdingcong. Originally published at ValueWalk.

In 2016, US scientists for the first time announced their detection of gravitational waves, ripples in space and time hypothesized by Albert Einstein a century ago. Such a discovery represents a scientific breakthrough, opening the door to an entirely new way of observing the cosmos. In 2017, the Nobel Prize in Physics was awarded to three US scientists for the detection of gravitational waves. To better grasp the process of their discovery, CGTN’s Tian Wei spoke to two of them: Rainer Weiss, Emeritus Professor of Physics at MIT and Kip Thorne, Emeritus Professor of Physics at Caltech. Chen Yanbei, Professor of Physics at Caltech, also joined the talk.

mikkehouse / Pixabay...

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Zero Hedge

Stocks Suffer As 10Y Yields Reach 2014 Highs, Curve At Inflection Point

 

Stocks Suffer As 10Y Yields Reach 2014 Highs, Curve At Inflection Point

Courtesy of Zero Hedge

Overnight saw 10Y Treasury yields touch 2.64%, topping the post-election peak to its highest since September 2014 (and crossing Jeff Gundlach's "red line" for stock damage). However, the yield curve's bear-steepening may suggest a turning point.

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14 Stocks Moving In Friday's Pre-Market Session

Courtesy of Benzinga.

Gainers
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Bitcoin and cryptocurrencies are just the Beanie Babies of the moment

 

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How Alzheimer's disease spreads throughout the brain - new study

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

How Alzheimer's disease spreads throughout the brain – new study

Courtesy of Thomas E CopeUniversity of Cambridge

Harmful tau protein spreads through networks. Author provided

Alzheimer’s disease is a devastating brain illness that affects an estimated 47m people worldwide. It is the most common cause of dementia in the Western world. Despite this, there are currently no treatments that are effective in curing Alzheimer’s disease or preventing its relentless progressio...



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Trump Admin Bans CDC From Using Words Like 'Science-Based,' 'Diversity'

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These are the policies of a theocracy, not a modern democracy:

Trump Admin Bans CDC From Using Words Like ‘Science-Based,’ ‘Diversity’

The Trump administration has prohibited the Centers for Disease Control and Prevention (CDC) from using words like “science-based,” “diversity,” and “transgender” in their official documents for next year’s budget, according to the Washington Post.

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Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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CLICK ON CHART TO ENLARGE

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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