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Building My Trade Plan - $100.00 to $5000.00
Building My Trade Plan starting with $100.00 in capital.
Goal: Grow the $100.00 to $5000.00 in 90 days.
Its time to put my experience, learning's and experience to the test. Firstly for myself. Secondly, to prove the value of the book - Building My Trade Plan.
The book was written for Day Traders, specifically those dabbling in the financial markets. Yet as I continue my pursuit, I realized that Building My Trade Plan was more versatile and can be applied in the "real world". Buying a stock or intangible asset, then trading it at a profitable price for a profit. I once thought that day trading only applied to stocks as that is how the concept and idea was initially introduced to me. Once I began my research and study of the book I created, yes I am a firm believer of drinking your own kool-aid so to speak, I came into a remarkable realization.
Trading is more than just stocks and bonds. Making a trade occurs daily, when one party purchases something of value and sells it to someone else who values the item with more interest. Enough interest that the interested party is willing to pay or barter for the item in question. For example, I purchased a 45' trailer for $400.00 and traded it to someone that valued the trailer for $1200.00. There was some transportation cost (expense) that I incurred for removing and delivering the trailer to the new owner ($250.00) making my total cost of the trailer $650.00 yet the net result in my pocket was $550.00
Now depending on what side of the fence you sit, or your mathematical interpretation - my ROI (return on investment) for my total investment was nearly 100%. Not bad right, right. If you are able to invest a $1 and get $2 in return, well no one will ever balk at that kind of return. Granted that trade took some know how and having the right resources in place yet that is the whole concept and idea of Building My Trade Plan.
The financial markets, the idea of trading intangible digits for higher digits, will allow you to sit at home or office in front of your computer with a tad less risk, while my trading of a trailer called for me to be out in the world and forced me to create a market. I asked myself what is the difference from my transaction and the one I was originally intending with my book, Building My Trade Plan.
I decided to focus on the title and came to the conclusion that there isn't one. I was able to Build my trade plan - by purchasing an asset for $1 and selling it for almost $2.
I digress, the purpose of this entry is to create a plan of starting with $100.00 and growing it to $5000.00 through a series of trades. The $100.00 is my game start, not mentioned or shall I say what one must consider is my knowledge and experience of buying an asset for a $1 and selling it for $2. That idea alone can be my trade plan. If I simply doubled up my investment each time, I will hit my $5000.00 in six trades:
$100.00 - 200.00 - 400.00 - 800.00 - 1,600.00 - 3,200.00 - 6,400.00
Granted that is easier said than done yet what if I followed the same idea of buying a trailer for $500.00 and selling it for $1,200 netting $550.00 each time. The challenge I will have to overcome if I follow this plan is trading the $100.00 to $500.00 to buy the trailer. Ah yet a good mentor said sometimes, if possible, borrow the money and bring a nice return to the lender to get the snowball rolling.
The snowball is small yet a great place to start and monitor.
Goal: Grow the $100.00 to $5000.00 in 90 days.
Its time to put my experience, learning's and experience to the test. Firstly for myself. Secondly, to prove the value of the book - Building My Trade Plan.
The book was written for Day Traders, specifically those dabbling in the financial markets. Yet as I continue my pursuit, I realized that Building My Trade Plan was more versatile and can be applied in the "real world". Buying a stock or intangible asset, then trading it at a profitable price for a profit. I once thought that day trading only applied to stocks as that is how the concept and idea was initially introduced to me. Once I began my research and study of the book I created, yes I am a firm believer of drinking your own kool-aid so to speak, I came into a remarkable realization.
Trading is more than just stocks and bonds. Making a trade occurs daily, when one party purchases something of value and sells it to someone else who values the item with more interest. Enough interest that the interested party is willing to pay or barter for the item in question. For example, I purchased a 45' trailer for $400.00 and traded it to someone that valued the trailer for $1200.00. There was some transportation cost (expense) that I incurred for removing and delivering the trailer to the new owner ($250.00) making my total cost of the trailer $650.00 yet the net result in my pocket was $550.00
Now depending on what side of the fence you sit, or your mathematical interpretation - my ROI (return on investment) for my total investment was nearly 100%. Not bad right, right. If you are able to invest a $1 and get $2 in return, well no one will ever balk at that kind of return. Granted that trade took some know how and having the right resources in place yet that is the whole concept and idea of Building My Trade Plan.
The financial markets, the idea of trading intangible digits for higher digits, will allow you to sit at home or office in front of your computer with a tad less risk, while my trading of a trailer called for me to be out in the world and forced me to create a market. I asked myself what is the difference from my transaction and the one I was originally intending with my book, Building My Trade Plan.
I decided to focus on the title and came to the conclusion that there isn't one. I was able to Build my trade plan - by purchasing an asset for $1 and selling it for almost $2.
I digress, the purpose of this entry is to create a plan of starting with $100.00 and growing it to $5000.00 through a series of trades. The $100.00 is my game start, not mentioned or shall I say what one must consider is my knowledge and experience of buying an asset for a $1 and selling it for $2. That idea alone can be my trade plan. If I simply doubled up my investment each time, I will hit my $5000.00 in six trades:
$100.00 - 200.00 - 400.00 - 800.00 - 1,600.00 - 3,200.00 - 6,400.00
Granted that is easier said than done yet what if I followed the same idea of buying a trailer for $500.00 and selling it for $1,200 netting $550.00 each time. The challenge I will have to overcome if I follow this plan is trading the $100.00 to $500.00 to buy the trailer. Ah yet a good mentor said sometimes, if possible, borrow the money and bring a nice return to the lender to get the snowball rolling.
The snowball is small yet a great place to start and monitor.
