- Take GOOD losses and trust that over a number of trades you WILL come out on top
- Do not trade off 1m. Must trade off 5m. Do not justify entries based on 1m patterns.
- Be prepared to lose 50% on every options trade. 50% should be assumed base risk
- Ensure liquidity in contracts before trading
- Set Alerts for Stocks. You can’t watch all of them at once
- Do not bring emotions from prior losses into new trades.
- Do not succumb to GREED
Overview: Not trading using the 1m chart is the biggest takeaway. You can use it for reference but you MUST NOT use it for confirmations. Might be better to hide it altogether, it just creates stress. Second, you MUST control your emotions on each new trade, each new trade must exist in a vacuum, you let greed & trying to make up for past losses poison what would have otherwise been healthy trades. First day with losing trades. took a few GOOD losses, which is a skill I need to develop, but took some poor ones as well. Forgot how to lose well since its been 10 weeks since last losing day.
-Trade 1 Key Takeaways: First loss I’ve taken in a while, Could have had tighter stops, need to determine & specify better stop loss levels for SCALPS as opposed to day trades. Given that the intent for this trade was to scalp, the stop level should not have been as wide as you had it. But again, there have been plenty of times when your stops have been too tight and you missed out as a result. Perhaps given that the level that was broken below was so significant on a larger time frame that should have been insight to cut.
-Trade 2 Key Takeaways: Do not trade based on 1m chart. It’s noise too often. WAIT for CONFIRMATIONS for exits AS WELL AS ENTRIES. With options trades you should just walk in prepared to lose 50%. that’s just the nature of the game, particularly if you’re going to wait for levels to be respected. Even if your r:R is only 1:1, the rate of your winning trades is enough that you will be profitable. If you pick high quality setups & maintain a win rate greater than 50% you can afford to take 1:1 trades. Consider this
-Trade 3 Key Takeaways: Ensure liquidity in contracts before trading
-Trade 4 Key Takeaways: Ensure you’re trading contracts with liquidity. Pay attention to volume. Know when to switch from scalp to day trade.
-Trade 5 Key Takeaways: Need to have alerts set for stocks. Cannot possibly be watching all potential plays at once.
-Trade 6 Key Takeaways: Do not justify entrys based on 1m chart patterns. Do not ignore larger time frame ema trend particularly 15minute & hourly
-Trade 8 Key Takeaways: Do not get greedy. do not bring emotions from prior losses into next trade. Do not get greedy trying to make up for prior losses. Trade your fucking levels & take profits. You don’t need to capture full move.