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

 

 
 
 

ValueWalk

Learn Warren Buffett's Simple Psychological Trick To Being Persuasive

By VW Staff. Originally published at ValueWalk.

Warren Buffett is one of the most famous investors alive. Here’s one psychological trick he uses to get others focused on his intended message.

]]> Get The Full Warren Buffett Series in PDF

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Press Secretary Spicer Resigns Following Vehement Disagreement With Trump

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If nothing else, Trump provides entertainment value for comedians and bloggers.

This morning, we learned press secretary Sean Spicer Resigns as White House Press Secretary following a huge dispute with Trump over communications.

Sean Spicer, the White House press secretary, resigned on Friday after denouncing chaos in the West Wing and telling President Trump he vehemently disagreed with the appointment of the New York financier Anthony Scaramucci as c...



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Bank Of America Says Expectations For Groupon Are Still Too High

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Small Caps Breakout

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It has taken a few days for Small Caps to make their move but today was the day the Russell 2000 joined other indices in mounting a breakout. It was a clean breakout supported by positive technical strength - putting to bed the June 'bull trap'. Watch for the second round of stop-whips with an intraday move (and recovery) below 1,430.


Other indices added to their breakouts. The S&P gapped and pushed on, backed by higher volume accumulation. Watch for a tag of upper channel resistance.

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Why we need to act on climate change now

 

Why we need to act on climate change now

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OpTrader

swing trading portfolio - week of July 17th, 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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Immunotherapy: Training the body to fight cancer

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Immunotherapy: Training the body to fight cancer

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The App Economy Will Be Worth $6 Trillion in Five Years

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The App Economy Will Be Worth $6 Trillion in Five Years 

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NewsWare: Watch Today's Webinar!

 

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Mid-Day Update

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Click here for the full report.




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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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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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