You spend enough time reading the comments of financial influencer’s posts you’ll start to see a the same question posed over and over again:
If you had $1,000 to invest/trade what would YOU do?
Most of the posts you see those comments on are by influencers showing off the “millions” they’ve made using their system of trading. They often make promises about how buying their classes can make you $100-$200 a day or more — But for those starting out it can seem like getting to a million when starting with next to nothing will never happen in this lifetime, so they ask what that person would do with $1,000. But asking a rich person what they would do with basically pennies will never yield a great answer. Some of these people can lost more in a day that you make all month and it doesn’t phase them. You can’t compare yourself to them, especially when most influencers are faking it (to get you to shell out your money) so they can make it.
So with this post I want to take a look at a real world example of a successful swing trade and the realistic gains one could make. Just a reminder that these posts are NOT financial advice, just me walking you through a paper trade one of my stock picks with a fictional $1,000* to invest in a single trade.
*Now, it’s important to note is that you should never put ALL of your capital into a single trade. So for this case study, we’ll assume our total bank roll is $10k of which we are looking to put 10% of it ($1,000) to work on a single trade.
This post will assume you know how to read a stock chart, so knowing what Moving Averages are and the difference between Simple and Exponential, can recognize levels of Support and Resistance, and know what things like RSI (Relative Strength Index) and ATR (Average True Range) are. If this all sounds like Greek to you, READ THIS POST FIRST!
Finding a Good Stock Pick
They always say if someone at the gym or work is telling you about a good stock pick, chances are you’ve already missed out and it’s already ran it’s course and is getting exhausted. So then how do you find a good stock with over 2,500 in the NASDAQ and 500 in the S&P (and not to mention the OTC stock)? As I’ve…