My name is Adam Wade. I'm a stock trader with only three years experience, with some limited interest in the markets going back a few years prior to that. I'm not young, just new, and I have no background in finance or investing. I'd still like to think that the time I've spent so far as given me a foundation to build on.
My trading method is simple. I start with a universe of stock ideas based on value, catalysts, sentiment, and price movements. I use stops and position sizing to accurately measure risk. I weigh that risk against reasonable expectation of reward, and enter trades that maximize that ratio.
So far I've been a poor trader. This blog will help me stay focused, obey my stops, and track my performance. I currently have over 30 positions open. It's really too many, and that's something I need to work on. I would say 20 is probably perfect, with optimally about five positions in futures based trades or securities with a low correlation to stock indices.
I don't currently use options. As fun as they are, there are too many extra ways to lose, and while it seems as though the risk/reward ratio is high, I find that versus using stops in stock positions, it's actually somewhat lower. I also don't trade futures currently, though it's something for me to look into.
I appreciate any advice, feedback, and criticism of my trades and blogging.
August 29, 2014
Introductions
Adam
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