November was more of a cautious month. After the difficult two steps backwards during October I had to make some new rules for the month to get my confidence back up and to reduce risk.
Trader rehab
3000 max size, scalping with 750-1500
new stock going smaller size to get a feel. how the fill is the time it takes to get your fill and exit. etc.
Allow winners to run and if there are opportunities around HOD, half and whole dollar breakout also 1 min, 5 min breakout
1. If you’re good green and go back to 0 finished for the day.
2. No averaging down
3. Max loss 580 slow down at -450
4. Waiting for set up only (taking too many trades without specific setups)
5. Stop trading when there is no signs of strength
6. Being impatient, need to be okay when missing a move, you see money to be made then you impulse to a bad trade by just jumping in instead of waiting for the right timing
7. get yourself in trouble because the impulse to buy without setup selling at loss at the moment you should have been buying because you were in too early. but also there is not that A setup shouldn’t be putting so much risk on these trades
Keep in mind, this is correct but flawed, sometimes need the pull back to get a good entry point.
I was doing no pull backs when I was making money (I was only doing any pull back need a thesis pull back idea and price range is good, usually only for quick scalps
8. 2-3 trades per ticker?
3000 max size, scalping with 750-1500
new stock going smaller size to get a feel. how the fill is the time it takes to get your fill and exit. etc.
Rules
Only trade setups, if there is no setup no trade.
Setups: ABCD? Still don’t see well
1. break of key resistance
2. micro pull backs
3. break of high of day
4. break of half and whole dollars one minute break out and five minute breakout on front side only
5. halt resumption dip and rip (depending on spread and VOL)
6. double bottom dips? Have not worked well for me yet
7. Pull backs to resistance or 9ema if proven should be tested with a starter size 500-750 shares.
Followed rules and max loss better throughout the month. I did come back and traded afternoon too many times. This sometimes works which is not helpful overall. Other times ending deeper red.
Positives:
I did follow my rules much better. Needed to string together some green days even if they are small to regain confidence.
December Plan will be to continue with same trading rules and significantly reducing PM trades. This will help create patience and not jumping in on all trades and over trading. PM trades with lower share size but to get a few trades to be ready for regular hours.
