last week ended up down a little but happy with progress on goals and habits that I need to change.
Goals for this coming week as follows,
No impulsive trades – there needs to be 3 key setups to
trade along with market range bound or uptrend for long. Defined by SPY, IWM,
QQQ and E minis
Long
Increased volume
Gap up for long
Support on 5 minute chart for level to be valid
Short
Break key levels
Slow death or event to drive it down
Exceptions
Steve S trades. Plan to enter his with 10 shares for purpose
of leaning. Will try as many as possible and this is hard. I bailed on a trade
last week where he shorted a strong up move as I just couldn’t bring myself to
trade. It worked and it shows how much we are conditioned by what we think we
know.
He makes money and I don’t so I need to copy trades till the
patterns become my own
Stops – read an interesting interview in Hedge Fund Wizards
and it talks about the point of pain for most people’s stops. This is the wrong
place to put them and I have fallen into the habit of setting stops at a pain point
and this is not the correct place as I get stopped out so often for a few
cents.
Action
Stop level is to be worked out first based on past levels
and then position size established to risk only what I want to lose if I am
wrong.
I will keep at the other points as well, keeping stops in
place, taking of part of positons at key levels, letting trades run.
If I see Conviction trades I will trade with a larger size
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