5/8 Weekly Review
This week is proving to be a good re-training/learning week. I am getting back into trading gappers and only High beta names. Not messing with the lesser in play names. I still will though if I find something, but only if its really good.
This week was unlike any other ive had in a long time, or maybe ever. I got nervous to trade. I didnt have confidence. And I think this week was a great confidence builder to remind myself I can still trade well. After that 0/25 day I was just shot, pissed, annoyed. Couldnt believe it. Had to take it slow and work my way back to normal and I feel much better now.
I took it so slow this week. Didnt over trade at all and was seriously discipline in what trades I took. Did not settle for anything. I really needed to.
Ive always tried to imagine myself as an SMB trader, I follow the group religiously watching all the vids, reading all the articles, being a DNA member. Though I havent actually traded like it. Ive done my own thing for years now and picked up pieces along the way and added it to my arsenal as I saw fit. Now this week ive finally got it down how I should be trading, and how I want to be trading.
Bella always talking about fighting for price and letting the market come to them and thats what I did this week. For all of my LT trades I waited for price to interact with the level I had planned before hand and waited and waited til I saw it on the tape that it was time to trade. Minimal risk max reward.
Its tough. You have to be fast, you have to be decisive, you have to know every step youre going to take before you even see price interact with the level. I have a bad habit of going back and forth to remind myself where that level came from and what I should expect from it so now im going to be labeling each one to remind myself.
I know what I want to do but how I manage it I am still working on. SMB just came out with a video that no surprise connects with exactly what im going through. The trade said he had the $$$ amount he was willing to risk before the trade even began. When he saw 'the turn' he would put on 25% of that $$$ amount to start, and then add to full size on a break the 'confirmed' the move. The way ive been doing it is when price gets to my level, I watch, I like what I see, I get in. If I saw more good tape action I add, then add again. Then on next pb to the level Id add more.
Slowly building into the position allows me to
1. Drastically reduce risk on a losing trade
-If im wrong, I only started with tiny size so I lose practically nothing
2. Add to winners
-If im right, I add and increase risk while keeping the same stop.
-Adding risk to winners, not losers, not breakeven
3. Get a feel for how strong or weak the stock really is
-If I want long at 100 and price is at 100.20 and I see buyers holding price up, skipping it up higher, I know buyers are defending this level.
-If they are not there, then I dont have reasons to trade or add risk because my thesis is not supported by the action of the stock
-This week I saw it A LOT. Especially on gappers. Buyers would take control of levels so clearly it was so easy to see that they were also playing off of your typical levels (pmkt hi/lo, some D s/r, vwap, TLs)
I think risk management is the key thing here. Fighting for price is risk management. No longer do I only enter LT trades on breakouts, risking my 50$ on a black and white, yes or no, 1 or 0, trade. Its the flow of the trade. The flow of risk.
Im trying to compare myself to an SMB trade and how they would do it.
1. They are defined before the trade
2. They fight for price
3. They also take the breakouts
4. Seen plenty of tier sized trading where they have 3 separate tiers
I think for me I dont like the idea of just thinking about it in 3/4/5 separate chunks yet. I like continually adding to my winner as it proves itself, and very quickly. Ill always be looking to add on the pullbacks to some level so if I have a good starting position to the trade, Ill be adding risk to a winner that im already up on.
So ill start with ~20risk, up to 40, up to 60. Then it turns into a 150 win. Then on a pb now im only up 75 but im looking to add more to that while at the same time knowing that If im wrong on the 2nd set of adds, ill more than likely be getting out of the trade for still a profit. But if I dont stop out. Im stacking up that risk to build an even bigger position, while playing with house money. The goal is to be correct from the beginning to be able to get to that point later in the trade as I have new sets of S/R to trade off of/ risk off of.
The numbers are pretty good. 62% WR, 91% compliance. I took 34 trades but only 10 names. Lots of adds to LT trades.
My Risk taken on winners vs losers is still upside down. Mainly because of scalp losses though. For LT trades the numbers are looking good.
WR is biggest thing here. Im not settling so its good to see it so high again. This week was mainly about getting back to basics. Next week I am going to try getting a little bigger again, aggressively adding to those LT trades.
Im going to be super busy this weekend so I wont be able to sit down and really type up new plans and what not so more than likely this next monday I will be able to work on them. Things I need to get done.
1. Work on process paper for LT
-Catch, EE, Starter, Tape. What do they all mean and when do I tag them.
2. Determine Risk model for LT
-How much and where
-Adds
-Breakouts
As always its good to have positive problems like not being big enough rather than taking bad trades. I will go over screenshots on my own time this week of my trades and see what could have changed or been better.
1. Was there a better place to add
2. Was there another place to add after initial entry on a new pb.
3. How big can I get
4. How can I manage my stop better.
This week was unlike any other ive had in a long time, or maybe ever. I got nervous to trade. I didnt have confidence. And I think this week was a great confidence builder to remind myself I can still trade well. After that 0/25 day I was just shot, pissed, annoyed. Couldnt believe it. Had to take it slow and work my way back to normal and I feel much better now.
I took it so slow this week. Didnt over trade at all and was seriously discipline in what trades I took. Did not settle for anything. I really needed to.
Ive always tried to imagine myself as an SMB trader, I follow the group religiously watching all the vids, reading all the articles, being a DNA member. Though I havent actually traded like it. Ive done my own thing for years now and picked up pieces along the way and added it to my arsenal as I saw fit. Now this week ive finally got it down how I should be trading, and how I want to be trading.
Bella always talking about fighting for price and letting the market come to them and thats what I did this week. For all of my LT trades I waited for price to interact with the level I had planned before hand and waited and waited til I saw it on the tape that it was time to trade. Minimal risk max reward.
Its tough. You have to be fast, you have to be decisive, you have to know every step youre going to take before you even see price interact with the level. I have a bad habit of going back and forth to remind myself where that level came from and what I should expect from it so now im going to be labeling each one to remind myself.
I know what I want to do but how I manage it I am still working on. SMB just came out with a video that no surprise connects with exactly what im going through. The trade said he had the $$$ amount he was willing to risk before the trade even began. When he saw 'the turn' he would put on 25% of that $$$ amount to start, and then add to full size on a break the 'confirmed' the move. The way ive been doing it is when price gets to my level, I watch, I like what I see, I get in. If I saw more good tape action I add, then add again. Then on next pb to the level Id add more.
Slowly building into the position allows me to
1. Drastically reduce risk on a losing trade
-If im wrong, I only started with tiny size so I lose practically nothing
2. Add to winners
-If im right, I add and increase risk while keeping the same stop.
-Adding risk to winners, not losers, not breakeven
3. Get a feel for how strong or weak the stock really is
-If I want long at 100 and price is at 100.20 and I see buyers holding price up, skipping it up higher, I know buyers are defending this level.
-If they are not there, then I dont have reasons to trade or add risk because my thesis is not supported by the action of the stock
-This week I saw it A LOT. Especially on gappers. Buyers would take control of levels so clearly it was so easy to see that they were also playing off of your typical levels (pmkt hi/lo, some D s/r, vwap, TLs)
I think risk management is the key thing here. Fighting for price is risk management. No longer do I only enter LT trades on breakouts, risking my 50$ on a black and white, yes or no, 1 or 0, trade. Its the flow of the trade. The flow of risk.
Im trying to compare myself to an SMB trade and how they would do it.
1. They are defined before the trade
2. They fight for price
3. They also take the breakouts
4. Seen plenty of tier sized trading where they have 3 separate tiers
I think for me I dont like the idea of just thinking about it in 3/4/5 separate chunks yet. I like continually adding to my winner as it proves itself, and very quickly. Ill always be looking to add on the pullbacks to some level so if I have a good starting position to the trade, Ill be adding risk to a winner that im already up on.
So ill start with ~20risk, up to 40, up to 60. Then it turns into a 150 win. Then on a pb now im only up 75 but im looking to add more to that while at the same time knowing that If im wrong on the 2nd set of adds, ill more than likely be getting out of the trade for still a profit. But if I dont stop out. Im stacking up that risk to build an even bigger position, while playing with house money. The goal is to be correct from the beginning to be able to get to that point later in the trade as I have new sets of S/R to trade off of/ risk off of.
The numbers are pretty good. 62% WR, 91% compliance. I took 34 trades but only 10 names. Lots of adds to LT trades.
My Risk taken on winners vs losers is still upside down. Mainly because of scalp losses though. For LT trades the numbers are looking good.
WR is biggest thing here. Im not settling so its good to see it so high again. This week was mainly about getting back to basics. Next week I am going to try getting a little bigger again, aggressively adding to those LT trades.
Im going to be super busy this weekend so I wont be able to sit down and really type up new plans and what not so more than likely this next monday I will be able to work on them. Things I need to get done.
1. Work on process paper for LT
-Catch, EE, Starter, Tape. What do they all mean and when do I tag them.
2. Determine Risk model for LT
-How much and where
-Adds
-Breakouts
As always its good to have positive problems like not being big enough rather than taking bad trades. I will go over screenshots on my own time this week of my trades and see what could have changed or been better.
1. Was there a better place to add
2. Was there another place to add after initial entry on a new pb.
3. How big can I get
4. How can I manage my stop better.
Comments
Post a Comment