Recently, I created a trading account and paid some money into it. Not much, like 2.000 €. I have placed some bets and made quite a nice profit already, leaving the bets on that I made. I didn’t close them. Now I want to create this article to make a note about my challenge that came onto my mind today. The challenge will be over once I made a profit of 10.000 % or I completely lost my capital. I will post updates every week and make screenshots. Also that means a 10.000% Profit of 1.950 € (exact paid in amount) is 196.950€. Of course that is not a life changing result, but it will be a nice side-bet. To make it a nice round number, I will set the target to 200.000 €
Challenge
Starting capital: €1,950.00
Balance today: €1,914.16
Capital: € 2680.69
P/L: €766.53
P/L %: +39,3% (€766.53/€1,950.00)
As a margin I am using about half of the capital with one large bet still on the sideline waiting for the right price. The margin requirement is regulated in EU to about 20%, that means it has a 5 x multiplier.
Currently, the strategy is that I am long on one stock and short on one stock. I will post the monthly charts. The background of both stocks is totally different to each other.
Stock 1
Monthly chart
As you can see I choose this stock for a turnaround long strategy. I bought 5000 pieces for $1,26. For this stock I have another pending order to double my holding at $1,40 if there is a drop again. If not, I have to think about increasing the bet at another level.
Stock 2
Monthly chart
This stock is (in my believe) very overheated and I chose to got short. So far I have made some profit, but this is not done, yet. Here, I put 3 bets with each 9 pieces on, because my bets were too small and the margin requirement high (about €750). I am not sure, yet, if I should set more bigger bets on this one. As you can see at the bottom the RSI is going ballistic (like 90) on a monthly basis, which means that it is overbought.
Anyway…
Challenge Accepted!