- You shine in the first 15 minutes. Refine what you’re doing well at.
- Be ready to switch and play downside. Levels still apply.
- Must ensure liquidity in chosen contract.
- Must have faith in analysis & greater trend on larger time horizons.
- Must observe & gain insight into unique price action of each new issue you trade BEFORE trading.
- You must NEVER trade Carelessly. There is NO benefit to disregarding discipline.
- DO NOT CULTIVATE HABITS THAT WILL LEAD TO LONG TERM FAILURE.
- Do not cultivate the seeds of failure.
Overview: Thoroughly insightful trade session and successful first application of scaling out strategy. Refined resolve that there is no such thing as a good trade if it is not executed with precision & meticulous preparation. I must have no tolerance for any trade executed in such a way. Any trade executed without the full strength of my effort & tools I’ve refined is unacceptable. Must be ready to follow price action to a T. This one of the clear next steps in my journey of being able to get the most out of each session: Flipping to the opposite direction of a trade when the price action suggests a clear change of direction. I will be playing the same key levels I’ve already mapped out. This may be a rather advanced technique so I’m in no rush to move forward with mastering it, but nevertheless it is one which I must begin considering. I must be sure to have some insight into how the price action of a new stock PARTICULARLY in a new sector moves before I embark on trading it. I was insecure & hesitant with US Steel, which was a contributing factor in my taking the poor trades I did. I must ensure ample liquidity in contracts by looking at volume from day before on charts of option contract, volume bars will indicate liquidity since option chain doesn’t show volume of day prior in premarket. Always consider the greater trend on larger time horizons and trade in the direction of the current. Flow with the tide, the current & the wave, especially in these beginning stages while you’re building your cushion. You MUST always consider the plan & the trading style you are going to employ before you enter the trade and ADHERE to that style from entry to exit. Judge your success based off your adherence to the plan & the style you chose. There will always be more to be had, bigger moves to have been capitalized on. you must judge your trades based on the fixed time horizon & style of trading. And finally, and again, there is absolutely no point to trading if you’re planning to do so without discipline. Its an insult to your time, to your goals, to your life & values to dip even one moment into indulging flippant impulses. You do a =disservice to yourself and your values when you neglect discipline. If you care about creation, about freedom, You will be thorough in your process of trade and respect the procedure you’ve created for yourself to the letter. There is no other way to trade. Any other form of execution is unacceptable.
-You shine in the first 15 minutes. Continue refining what you’re doing well at. Trade with larger time frames justifying direction, ensuring the wind is at your back then trust your analysis. You don’t need huge moves to profit. 20% is completely acceptable.
–Be ready to switch and play downside. Levels still apply & if market shifts be willing to shift with it. You’ve done the prep work, take advantage of it
-Must ensure liquidity in contracts. Open interest does not translate to liquidity, volume does. How do I see prior day contract volume?
-Must have faith in analysis & greater trend on larger time frames.
-Must anticipate & employ appropriate trade style (Scalp vs Day trade) Must gain insight into how price action of issue you’re trading moves before trading it.
–No matter how ahead you are you must NEVER trade carelessly, there is NO benefit to disregarding discipline. In doing so you cultivate habits that will lead to failure. If you cannot trade with meticulous precision, Do not Trade. Even if it works out, it’s only cultivating the seeds of failure in the future. Do not lay a foundation for failure.
-Trade 1 Key Takeaways: You shine in the first 15 minutes. Continue refining what you’re doing well at. Trade with larger time frames justifying direction & giving you the wind at your back. You don’t need huge moves to profit. 20% is completely acceptable. First Trade employing scaling out strategy was a success
-Trade 2 Key Takeaways: Be ready to switch and play downside. Levels still apply & if market shifts be willing to shift with it. Trailing stop on trailing contract was a reasonably effective strategy, & logical. Perhaps being that this is still 33% of capital it would be best to have targets to be sold into rather than trailing stops.
–Trade 3 Key Takeaways: Must familiarize myself with price action of a new stock before trading, Must ensure liquidity in contract. Must have faith in analysis & greater trend on larger time frames. Must implement appropriate trading style. Contracts were not respecting price action as well as other options have. Plus I got IV Juice filled, being that my entry was so late,. Should have considered that this would be a longer time horizon trade. Was expecting too much too fast, not considering this is a new sector for me, likely with new price action traits. |
-Trade 4 Key Takeaways: Must anticipate & employ appropriate trade style (Scalp vs Day trade) Must have some insight into price action of issue you’re trading before trading it. Must have faith in technical analysis, particularly when the strength of the trend is clearly in your favor. |
-Trade 5 Key Takeaways: Need to be more disciplined, even with smaller sized trades after profitable ones. There is no benefit to disregarding discipline. Even if it works out, it’s laying the foundation for failure in the future. If you cannot trade with meticulous precision, Do not Trade. Do not lay the foundation for failure. You need to protect profits when you have them. You were up at least $50 on this & did not capture any of it. Granted a degree of that was poor exit fill, but you could have anticipated that would happen, as it often does with trailing limit orders. No matter how ahead you are you should never trade carelessly, as it contributes to cultivation of bad habits.