Any of you trade just a little as a hobby?

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Gr819406
Posts: 17
Joined: Wed Dec 13, 2017 2:58 pm

Re: Any of you trade just a little as a hobby?

Post by Gr819406 » Thu Dec 14, 2017 4:41 pm

Within the past year I've been using less than 1% of my overall portfolio to do this. I've read a few books and have come up with the below approach.

I scan for stocks crossing their 200 day simple moving average to the upside. I limit my stocks to $2B+ in marketcap and average daily volume of 1 million. I do this on finviz.com. There are probably 5-25 per day to scan thru.

I then have allocated a certain % I am willing to lose per trade. I picked .25% open risk per trade.
I determine my position size using the ATR listed on Finviz, so that the number of shares I buy has a stop loss calculated at .25% loss of overall trading portfolio value for a 2 ATR move below entry.

An example would be on a 100,000 portfolio I risk $250 per trade.

entry point = 25
ATR = 2, so my 2ATR stop would be 4 or a stock price of $21
due to this it allows me to buy 62.5 shares, so I round down and buy 62
I would buy $1550 with my stop value at 1302

Most recent position was $DIS entered on 12/11

I use a scaled exit based on other moving averages. Half out with a close below 50 day sma and other half with a close below 200 day. I ride out the initial entry till it hits my stop loss or begins to work. If it does nothing for 45 days I may consider closing if is below the 200 day and my stop loss is not hit. It hasn't happened that way to date, but its in my rules I came up with.

bgf
Posts: 653
Joined: Fri Nov 10, 2017 9:35 am

Re: Any of you trade just a little as a hobby?

Post by bgf » Fri Dec 15, 2017 10:35 am

DetroitRick wrote:
Thu Dec 14, 2017 3:12 pm
I trade a little, and maintain a well-diversified stock portfolio in addition to much larger fund-based portfolios. I wouldn't call it a hobby, but it does represent a fair amount of effort (research and thought). And I wouldn't do it if I didn't enjoy it. It's only one of many activities that I really enjoy.

My trading is infrequent, my goals are long-term, and my stocks are around 18% of total invested assets. Results have been fine over the decade I've been doing it, with my segment performance typically a hair better than their respective indices. But not so much better that I would consider the added work of scaling further upward in stocks. Personally, other than interest and aptitude, I think the key is broad diversification AND willingness to do the requisite work. Trying to cash in on a few short-term picks can be, as many can attest, a hit-or-miss game.
i think this is a totally sensible approach, and, most importantly, you have tracked and benchmarked your performance.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

uberational44
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Re: Any of you trade just a little as a hobby?

Post by uberational44 » Sat Dec 16, 2017 10:19 am

I don't trade at all, but I do look for opportunities where you can make a very cheap bet on something that has a relatively high probability of happening...

An example would be.. if you thought the eu was going to collapse and you owned a 1m+ portfolio, you could borrow a small sum in eu and sell back if your bet went right.

Its definitely not the sensible thing to do though and it wise to keep almost everything you have in index funds!
Marketeer investing as a hobby. Interested in modern takes on value investing, passive investing and general contrarianism.

Dulocracy
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Joined: Wed Feb 27, 2013 1:03 pm
Location: Atlanta, GA

Re: Any of you trade just a little as a hobby?

Post by Dulocracy » Sun Dec 17, 2017 10:19 am

Nope.
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.

Nowizard
Posts: 1615
Joined: Tue Oct 23, 2007 5:33 pm

Re: Any of you trade just a little as a hobby?

Post by Nowizard » Sun Dec 17, 2017 1:04 pm

Yes, to scratch the itch. Just checked, and it represents about 1.5% of our portfolio in three stocks, Southern, Amazon and Google at the moment.

Tim

Mrxyz
Posts: 599
Joined: Wed Feb 29, 2012 6:12 am

Re: Any of you trade just a little as a hobby?

Post by Mrxyz » Sun Dec 17, 2017 1:17 pm

Many many years ago, I thought I knew about trading/buying/selling. Had an etrade account to do it. Made around $2500. And then got out realizing that I am an idiot doing it. I can say I was 'playing with my kids money' !
Boglehead since then and have not looked back.
Nothing, repeat, nothing is worth the stress of trading! Maybe it works for others.
It is so easy to plug away saving using 3 fund portfolio and once a year (perhaps) re-balance. So so so boring....................but works!

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birdog
Posts: 168
Joined: Fri Apr 07, 2017 1:35 pm

Re: Any of you trade just a little as a hobby?

Post by birdog » Sun Dec 17, 2017 3:21 pm

No. I quit when I realized I was working really hard and stressing only to under perform the S&P 500 index.

johnra
Posts: 176
Joined: Sun Dec 28, 2014 12:07 pm

Re: Any of you trade just a little as a hobby?

Post by johnra » Sun Dec 17, 2017 3:40 pm

Four years ago, I started buying stock in my smallest IRA (less than 3% of retirement savings) and now it has more than tripled! This year alone, up 50%. This is based on stock picking (buying, no selling).

sco
Posts: 825
Joined: Thu Sep 24, 2015 2:28 pm

Re: Any of you trade just a little as a hobby?

Post by sco » Sun Dec 17, 2017 11:49 pm

Used to a long time ago. Now I find it much easier to be lazier and still see #'s increasing..

NYCwriter
Posts: 195
Joined: Thu Sep 17, 2015 12:46 am

Re: Any of you trade just a little as a hobby?

Post by NYCwriter » Mon Dec 18, 2017 12:07 am

I've done some swing trading in my individual equity portfolio.

I took advantage of 2 years' worth of free commissions from Fidelity when I transferred my account from TD, but with this perk winding down I'm more content to just rebalance as needed and not muck around otherwise.

After so many years, I've found that my boring index/mutual fund portfolio does better across time, though not as well in a bull market where some equities reign. I made money off of NVDIA this year and won't apologize, darnit. I recently purchased a couple of lots of Macy's shares cheap when it bottomed, snagged that divvy, and now have a judicious stop loss in place in case it drops suddenly. That's about as wild as I get :)

TravelGeek
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Joined: Sat Oct 25, 2014 3:23 pm

Re: Any of you trade just a little as a hobby?

Post by TravelGeek » Mon Dec 18, 2017 12:10 am

No anymore, no.

I was looking through some old E-Trade files earlier today. What was I thinking?! Fortunately it was just a small amount I lost back in the late 90s. My specialty seemed to have been picking companies tha aren’t around anymore. :shock: :oops:

Bateauxdriver
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Joined: Sun Jan 08, 2017 11:51 pm

Re: Any of you trade just a little as a hobby?

Post by Bateauxdriver » Mon Dec 18, 2017 4:34 am

I've been buying just a few for fun. It's only 1 percent or so of our Net Worth. I've even bought some Litecoin. I made 300% in a week with the crypto currency.

We hold two commas in boring Vanguard index funds. It won't kill us.

KSActuary
Posts: 379
Joined: Fri Jan 13, 2012 10:53 pm

Re: Any of you trade just a little as a hobby?

Post by KSActuary » Mon Dec 18, 2017 1:16 pm

Sell volatility when appropriate.

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bottlecap
Posts: 5880
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Location: Tennessee

Re: Any of you trade just a little as a hobby?

Post by bottlecap » Mon Dec 18, 2017 1:19 pm

Baseball cards, maybe. I haven’t been buying since I was a kid, but I’ve been holding.

JT

Nowizard
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Joined: Tue Oct 23, 2007 5:33 pm

Re: Any of you trade just a little as a hobby?

Post by Nowizard » Mon Dec 18, 2017 1:39 pm

As the OP said, asking the question here is a little like the AA analogy. Individual stock picking has been the source of our largest gains and largest losses, so with much greater volatility than with our primary portfolio. Results are positive, however, slightly exceeding our long-term return on assets. Our greatest "gamble" was in the past when we put all our assets into a single mutual fund such as Vanguard Healthcare or Mutual Shares during a time when, lacking knowledge, "diversification" was thought to be accomplished by buying a mutual fund rather than individual stocks. Those "gambles" are the primary source of our assets since what would now be an unthinkable decision worked out wonderfully due to the time during which those decisions were made.

Tim

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