Best Trade of the Day: Failed 5 minute Breakout. (Green Arrow)
Worst Trade of the Day: Anticipation of backside moves (Anything above the Bull Flag Breakout because that signals beginning of frontside)
Mistakes
- Anticipated on every single entry (shorting the frontside)
-Too greedy on short that wouldve put me green on the day.
-Expected bottoms to fall out when they havent in 3 days
Solutions
-Never short until you have at least a 5 minute weak breakout and if that breakout gets bought up then dont try again
-Never short 5 minute weak breakouts when the SPY is ALSO doing it
-Always make sure you know the overall strength on the day. For example:
a. Gap up? or Gap Down?
1.Gap up: always be careful holding for longer moves especially when it holds premarket high
2. Gap down: Easier to hold moves through the lows and go for pull ups/weak 5 minute breakouts near PM high or PM low
b. Previous Day Close, Premarket High/Low, Opening Price, and Intraday High
1. Always watch each of these areas as the key signals to define where the strengh is. Is it holding above them or below? Where are the indices? Where are the Trendlines?
RULES:
1. Always stick to the Plan
2. Never take more than 3 trades going for the same Setup
3. 90% of Profit must be taken at 1.5$/share. If there is a good opportunity to add into the trade again then you can do it but only on clear marker red days.
4. Assume the money is lost before the trade is executed.
5. Never stay stagnant with Sizing. IF you stay the same size you look for more which only hurts you
