While in the IU chat room today, a biotech stock started going wild. Nate’s comment to the action made me shove away from my computer and just watch the action. The stock ripped up a buck and promptly stuffed for $2. Nate’s simple comment was “..yikes. No edge there”.
Continue reading What’s your edge?
Closed out the week with an incredible 25% gain, largely due to the following plays:
Continue reading Weekly recap and this week’s plan
Shew, what a week! Actually, what a last FEW weeks it has been for me: Regardless of how long you have been trading, it is always a learning process about the markets (and most importantly) understanding yourself as a trader. Here is where I am standing MTD:
S&P performance MTD: up 1.32%
My performance MTD: up 16%
Continue reading Progress
It is always intriguing to me when I read about lifestyles of successful people and the power of habits in their life. One of my favorites right now is Melissa Hartwig, co-founder of Whole30. She will occasionally speak to her daily routine and just simply explains in her always unabashed, unapologetic manner “because routine”.
Continue reading No hurry no pause
Nate from Investors Underground posted a solid reminder on Instagram today that is so relevant for ALL traders but particularly for new traders:
Continue reading $JNUG review and Monday plan
Becoming a successful trader is all about developing your strategy, which entails finding a play that you feel confident you recognize when it appears in your charts and then acting upon it in a smart manner. Once you have a proven strategy that you feel confident to sit at the table with and play, you need to have within your playbook the rules that will keep you in and/or take you out of plays. One of my rules when I see a potential play is to check the clock, as there are key pockets of time around which you may see consistent price reversals in stocks and the general market. The key reversal times I have found to be be meaningful are the following:
- 9:50-10:10 am
- 10:25-10:35 am
- 11:15-11:30 am
- 1:15-1:30 pm
- 2:15-2:30 pm
- 3:00 pm
- 3:30 pm
Look to reversal times to provide the following:
- Washout buy opportunities
- Parabolic short setups
- Profit taking opportunities
I am convinced every trader you speak to, when asked, will admit to some idiosyncrasy that is present in their trading day.
Confession time: I talk to myself. Out loud. And because I live alone, I find myself gently reminding myself that this is a behavior that is best to remain within my own four walls lest I want to end up in a softly padded room somewhere.
Continue reading Why would you do that?
Aside from finding 1-2 strategies that you recognize in an instant; correctly adding is the third most important part of a successful trade (the second being adhering to your stop if the trade goes against you).
Taking the opportunity to add will enable a couple of things to happen:
- keeps your position small so FOMO is not present but you aren’t risking too much too soon. You are in without danger of too large of an early stop.
- enables you to grow your profits while continuing to minimize your potential loss as the trade proves your directional thought correct.
MYSZ had a massive gap down on 2/16 and had maintained its pre-market trend. I had taken the quick rip at 9:50 am and was out in 10 minutes for a solid .20, which made my day goal considering the r/r and size I had taken but I had a feeling it wasn’t done, so I set alerts and left it alone.
VWAP proved itself again when it held the price, so I started very small just to be in for a feeler. Whatever small looks like for you, keep it manageable, as you have to remember that adds can only occur when your directional thought proves itself RIGHT. This is so key and why so many new traders (including myself at one time) struggle and/or fail. This was such a pivotal moment for my p/l when I reversed how I approached starting into trades. You are never going to catch the exact top or bottom but starting small with a theory will get you into some amazing trades. I have gotten so much better by nailing the correct direction but if you are in too big and wrong it can result in some larger than necessary losses. By the time I had added on washouts and also reduced by locking in some profits when it ramped, my average resulted in a .60 gain, which was awesome considering the risk moved to break even if I was wrong. Always play safely and protect your assets…and pay yourself along the way.
If you haven’t read the book, “Tools of Titans”, do yourself a favor and pick it up. While the hard cover weighs in at probably 3 pounds, it is one of those books you will find yourself needing to set down to absorb what you just read. And then rereading again.
(chapstick to warn you of thickness of book)
Continue reading Discipline equals Freedom