06 Oct Our Wannabe iTrader’s first trading week! Win or lose?
On Wednesday, the R10,000 was deposited into my Sanlam iTrade Online account and trading could commence! I was still a bit unsure of what to do and how to do it, so I bided my time as I trawled through some companies share charts.
I will want to mainly to invest through CFD’s. On each trade I would only like to lose a maximum of R500-R600 (my risk per trade), which in percentage terms is quite a lot for an account of size R10,000 (6%). The number I’ve come across most whilst researching was 2%. But I think I’ll be a risk-taker and see what happens.
I will most probably only trade with the trend of a share, which will hopefully result in more wins. My first step in my plan is to find a share that has a consistent trend that I am comfortable will continue in the trend’s direction. Once decided on the share, I work out how many shares to buy/sell (CFD’s) by setting my stop loss and seeing how many my risk factor allows for.
How it panned out:
The first share I picked with a trend which suited my plan was AngloGold Ashanti. On Friday morning I decided it was a good share to go short on. Here’s where it gets a bit embarrassing. In my excited state and the nerves factor for my first trade, I clicked the wrong button. Instead of clicking Bid, I clicked on the Ask price. This sent me to the ‘Create Buy Order’ page, where I put in the number of shares and submitted my mistake. I think I’ve learnt a good lesson with regards to keeping emotions out of trading. The blunder resulted in me buying 114 shares at 131.24, I then realised my mistake a bit later and got rid of them for 130.52. What makes this rookie error even more frustrating is Anglogold Ashanti share price is now at about 127.30. The result being that what could’ve been a 3% percent win, turned into a 1% percent loss.
In my other Friday trade, I found the Satrix Resi portfolio also had a consistent downward trend. I went short on STXRES and sold 296 shares at 50.80. This share has moved in the right direction for me and now sits at 50.15, so it is currently a 1.28% win for me.
This week I will continue with my trading adventure, following my set out plan, which I hope will lead to more wins than losses! I hope everyone has a good trading week and we all click the right buttons!
– Bradley Lund