Step by step of what I do nightly to make a trading plan.

-
This is the thought process and schedule on how I write out a plan on each ticker: 

Finviz to run a scan with the parameters that I use daily, pick 1 chart that I like on the scan, a daily chart pattern that appeals to my style of trading. Then news research and find out the catalyst that caused the sudden move for the day for that ticker. 

Go to a charting platform, pull the ticker up and start marking off key levels of support and resistance that had significant volume. Daily chart first, then 15 min chart, then 5 min, then 1 min. 

Develop a bias or plan in your mind after seeing the pattern in a big picture. Think about what the buyers and sellers did previous day. Think about what they plan to do the next day. What you think does not matter, you need to get into the shoes of what the others think. The ‘what would I do if I were them?’ Question.

Then write it down pen to paper! Very important! If it doesn’t go pen to paper, it will not register in your mind. It’s just like school.

Congratulations, you now have a plan. All you need to do is experiment your plan. Just like any science experiment, there is a chance to fail! You have to accept that fact! Once you have accepted that, you can now whether divide how much share size you want to use to put this plan to experiment and NOT GET HURT if the plan blows up in your face! 

After you have done the trade, record your results. You need to create a batch of experiments in order to find out what works for you. 

Rinse and repeat. 

This is what day trading truly is. Tedious trial and error without dying before you find your own secret sauce. Some find it sooner than others. For me I’m close to finding mine. My road is still very rocky though. But believe that your efforts will pay you out tenfold if not more. 

 People never plan to fail, they just fail to plan.

Comments

  1. UnknownNovember 21, 2017 at 3:00 PM

    Thanks for the fine blog. Can you please elaborate what parameters you use on Finviz for your nightly scans?

    ReplyDelete
    Replies
    1. MatrixNovember 24, 2017 at 11:17 PM

      I have already screen shot, pinned and posted them in the discord chat room.

      Delete
  2. lion king 2011December 2, 2017 at 8:32 AM

    Thanks happy holidays

    ReplyDelete

Post a Comment

Popular posts from this blog

Introduction to the winning mentality

-
Having a winning attitude.  I believe the psychology and mindset of a trader is key to differentiating you as a trader from being the big part of the 90% losers, to the minority of the 10% consistent winners. With that said, I have studied and chat with a lot of the professional retail traders in my year and a half of trading experience. One thing I do find that they all have is a positive winn ing mindset. So let’s define it; The proper attitude a trader must have: A positive expectation of your efforts, with an acceptance that whatever the results you get, are a perfect reflection of your level of development, and what you need to learn to do better. I want you guys to write this down, put it in a spot where you can glance at it daily, memorize this. Try to pick apart what this truly means. I understand that I literally just wrote a summary. I will dive deeper into what this truly means in the next post. Really break this down for you guys. Have a good night.
Read more

Buy the dip, sell the rip

-
Image
In this write up, I would like to show you how I personally take entries and exits in trades. Hopefully this will help shed some light for those who are still struggling to identify and time their entries and exits. Before we start though, I’d like to show you that there are 4 stages/states to any market though, illustrated in the image below. We will be focusing on stage 2-4. The up trend of the market, the topping and sideways action of the market, and the down trend of the market. It is during stage 2 and stage 4 that we need to decide whether we are already too late to hop on the train, or do we still have time to get in and turn a profit. Most of the time I find my self missing stage 2, the beginning trader will see it as hype and the market is hot and jump in. Only to find themselves getting in too late and stuck on stage 3. For my self, I usually find my self spotting stage 3, I sit stalking and waiting for the first sign of stage 4 coming. That’s the bulk of my trades. ...
Read more

The biggest mistake the new learning trader makes. My 'Aha' moment.

-
Okay, I feel that I really need to get this blog out asap as I find it imminent to address this issue before I see anymore account blow ups or bad losses.  I've seen too many and I personally have blown up quite a few accounts my self.  No one should be losing this much money if they apply this very basic principle I'm about to talk about.  How to set proper goals, and defining the moment when we are a consistent winning trader. If any of you have read my past blog entry, I have shown pretty clear that it is absolutely impossible to know what the market will do let alone control it.  The only thing that we, as traders have absolute 100% control over is how much money we lose, or willing to risk. That is the key differentiation between trading and gambling. With that said, I see some traders set daily goals for themselves. Many of them set monetary goals like, 'I'm want to make $100-$150/day. I want to make 'X' percentage of my account daily/weekly/monthly....
Read more