Strat Check –
Finally back to the excel models after a while. I realised in the last two months I have been shitting quite a bit on my strategy and taking bouncers that were not gaping down enough.
I did some revisions and the stats popped back up to the good numbers that got me to play this set-up in the first place.
Only going to look at >15% gap downs for bounce plays henceforth. The problem with this is that these set-ups come rarely. The road to success is a long one and I will have to keep growing as a trader.
So this week has been pas mal. There are some weeks you end thinking that although I may not have necessarily earned the desired results, I have definitely moved in the right direction.
Things that have went well in the last few weeks:
- Started focusing only on one set-up that I have been trying to develop
- Learnt my mistakes of not trading set-ups I have not tracked
- Understanding more and more that good trades can be red trades and bad trades can be green trades
- Respecting my stop level and not being shaken out
- Restructuring of commissions (happened over the weekend) – very excited about this one moving forward!
- Developed my journal to be more insightful through pivot tables
Things I definitely can improve on:
- Letting my winners run!
- Selling into pops better
- Understanding how to size in more efficiently
- Respecting my stop level and not being shaken out (yes this appeared in both sections)
- Timing my entries on pullbacks
Key Takeaways through studying:
- Do not trade the order flow and watch the chart
- Hard work is a necessary but not a sufficient factor for success
- The journey is long and tough, its important to recognise that and also to recognise the habits I have been doing correctly.
- The best trades are also always the MOST hardworking and have shitty work life balance.
It has been a while since I did one of these but this week I traded on all 5 days. It is rare for me to do so but it does depict my growing passion and addiction to the art. Still being relatively new (based on hours spent studying and in the markets), I made a ton of mistakes. I also made some significant strides but today I would like to just pen down my three biggest takeaways:
- Have confidence in your strategy. Many times this week I got scared out of positions quick only to be proven later that the stock did exactly as I expected and according to the pattern that I had studied or analysed.
- It is okay to miss set-ups. I found myself chasing things a couple of times even when my target entry point was missed or even worse, was not hit yet. I realised, the markets will constantly provide opportunity and its ok to miss some sometimes. That ticker you been analysing for 2 hours before the market opens just may react quicker than expected or hit a support much later than expected. Its okay if it goes down as a miss!
- Trade the chart, not your emotions. This ties in well with the above two. Be patient and wait for you entry. Once entered follow chart patterns to take profit or cut losses. Do not follow what you feel may be the best thing to do at that time. Take guidance from the chart
The last two days of trading I have learnt a lot by just looking at the market. I was so happy for that. I kept my phone away, kept my mind fresh and just stared at moving stocks to learn what the market could teach me. There are some moments where you feel like you’re moving forward and progressing and these two days were definitely one of them.
- On the PETs reversal below, I missed my entry because this sucker had a bit of a spread so my limit order was a little too low. Bummed out a bit but did not chase and started getting a little more confidence in my reversal set-ups.
2. I am certainly getting more and more confident with reversal trades and decided to invest more time this weekend in creating new tracking sheet and looking more at how I can trade these suckers more efficiently.
3. For the 5 min scalp set-up, I learnt two new things:
a) If the move before the set-up was not strong enough or had not enough range, the 5 min scalp is just not worth it.
b) There are two types of stocks that can create these 5 mins plays, runners and grinders. Grinders are usually higher float with more shares trades per day and runners vice versa. They are both different to play. One definitely falls more quickly that the other and one respects trends better than the other.
4. For the longest time I have been YouTube-ing interviews with other trades and today I learnt some stuff from Airplane Jane. I got to give a shout out to her as she did give me more insight and more ideas on how I can improve my trading.
Great stuff this week! Let’s hope for a better one next week!
So it has been a while since I did a weekly recap.
I have been studying shitloads for some weeks now and thought it would be the right time to just do a recap.
Now I had been having a terrible spell of poor trading not too long ago and it thought me many lessons and questioned my new found passion. I knew I did not want to give up but the pain was real.
Study, study, study. I realised that most traders succeed by specializing in a few reliable set-ups and eventually mastering them before moving on or broadening their horizon. I was doing the exact opposite. I was trading tons of set-ups with absolutely zero consistency. The emotions only added masala to the mess. So I changed – focused on 3 set-ups I liked. Bottom bounce, 5 min scalps and pre-market breaks. The result? Vast vast improvement in my accuracy. I hit around 75% for my last 8 trades and that is grand for me. Felt good and my losses were getting smaller. Lets hope this continues because it just may not!
Commissions are killing me. At the moment my size is too small for any realistic gains with the strategy that I am using. I figured I would wait till I get more consistent and competent before I increase size. My losses got smaller, sure, but my wins got even smaller too. The result – I am still down $50 from the past 8 trades even though my accuracy has been pretty stellar.
This is the tricky part: this week I am going to try a new set-up. Well technically its an adaption from my bottom bounce strategy and I feel like this could provide be a more balanced risk-reward such that I could make some consistent gains. Its risky because, again, I would be deviating from what I know and that did not work out before. However, the aim is to be a consistently profitable trader and at this moment I am not. Therefore, something needs to change! The question is what?
I am going to go ahead with the new set-up. See ya on the other side.
This was a fantastic weekend and probably one of the best in a long long time. Well last weekend was great too but hey nothing wrong with that.
I also took some time to educate myself and further my trading knowledge.
Some key takeaways this weekend:
1. Re-adjusted my loss to 110 instead of 150. I guess one big loss/2 losses in a row should mean that the third trade should NOT be taken. This will help me do that.
2. Focus on a few key set-ups and master them. Having said that I am going to focus on my 5min scalp and break of pre-market pivot set-ups henceforth. I will learn to master those before taking other random trades.
3. Continue observing and watching the markets and track potential future set-ups. This is exactly what I did this weekend. I started tracking a new set-up I call MDRV and hopefully within a month or two I will be using it in the markets.
4. Losses are good and I should embrace my losses as lessons. Its good to continue to be self-reflective and learn from my mistakes. Also figure out why and what makes a good entry and exit. The psychology and process behind the trade is clearly more important than the trade.
5. Create a plan and stick to it. Size in as you approach your target and take small size if your optimal entry target is far away. Always calculate your potential loss if things go wrong. THIS IS TRADING, THINGS WILL GO WRONG SOMETIMES. When they do, please cut losses.
I’m ready for a fresh and brand new week tomorrow. Have a good one suckers.