The following are real life examples of one weeks worth of picks taken directly from the Members area. The week we are using is from December 29, 2005. All our "Buy" and "Sell" prices were chosen on the date the picks were listed. Note - we did NO research on any of these stocks but solely relied on historical chart patterns. We recommend that you research any stock you are considering buying. All "Profit" or "Loss" totals are based on a $5000 investment per stock. Broker fees are not included in any of the totals. We strive to use conservative buy prices. This is done to insure that the stock price is going up when we decide to purchase the stock. Our "sell" prices are also conservative as we believe in taking small profits and moving on. We did not employ trailing stop losses, but remember that they are a great tool to protect your profits as the stock price moves up. You will note that not all of the stocks for the week were paper traded. This mainly happens because the stock never made a strong enough turn back up - hence we would have NEVER bought it in the first place.
When you begin paper trading yourself, remember a few key rules. Be realistic with the amount "invested". If you would really only buy $2000 worth of a stock in real life, do the same here. Don't buy a stock just because it is at the support level. Wait for it to be clearly moving up. Take smaller profits again and again. Knowing when you are going to sell before you buy means both on the upside and downside. Put your stop losses in at the same time you put your GTC in. This is the place to learn and this is an "over the shoulder" view on how our research team paper trades. We recommend a minimum of two months of paper trading; or at least consistently hitting on 80% of your paper trades.
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CHKP: We put our "buy" in at $20.75 and wasn't "bought" as stock opened on 1/4/06 at $21.04. GTC would have been put in for $22.25 and stop loss at $19.75.
The picks for the week of 12/29/05 netted us a net paper trading profit of $ 4,765.05.
Notice how we really waited to make sure the stock was on the way up before we "bought" it. While this week was atypical - we use it because it gives plenty of examples on how one would paper trade. Begin practice trading on paper and see for yourself.
Click here to get to the Practice Paper Trading Worksheet and start your paper trading today. Remember that you will not "buy" every stock because you won't be "buying" it unless it is establishing itself above the support level. Be honest with yourself and use numbers that you would use if it was real money and not just paper trading.
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