Trading Plan

Time is a thief for the impatient. And a gift for the patient. 

Do I need to think about selling options? 

It makes sense to sell puts, internals clearly strong, but the market is not in clear position to make that a good trade yet. Wait until its clean and clear. I would rather not sweat, than risk more money in uncertainty. 

BEFORE THE BELL

-Premarket Checklist.

-Is the market Trending, Chop, or turning?

-Is Sentiment making any significant trend breaks?

-What are best/worst performing sectors?

    -Are any breaking out or down?

-Do I need to make adjustments to my investments?

-Does yesterdays action look likely to continue today?

-Have we gone in a straight line to S or R?

    -Do I need to be cautious of an overextended market and look for reversal instead of continuation?

WATCHLIST PREP

-SPY/QQQ FANGMANT+ always in play. 

-Monthly/Weekly watch always in play for VA breaks. 

-Proper boxes and Anch vwap charted. 

-Scan through tradable to see if any 9/10, 10/10 are available. 

-8 Max. 

-Watchlist takes priority over FANGMAN/SPY/QQQ

-Know which I need to trade stock on, and which needs options.

-Know score of stocks.

-Eliminate setups opposite overall market trend. 

1st 30 MIN

-Time to buy stock/options.

    -Selling to risky. No trend. 

-Add fast, cut fast take what I get. Dont risk it will keep running.

    -Options lose value too fast. 

-No Trend = no Core

-Market doesnt have clear established trend majority of the time here. This means I need to reduce expectations. A setup is a setup but will fail if market is against me. If market is with, that is green light to hold and have a core to trade around. 

-1st entry is on vwap turn. This is Core IF market is favorable.  

        -Stop is at a pivot level, give a few ticks for a fake out. It is morning, it can happen but trend not set means chance for collapse. If market not favorable, get out on breaks. 

        -PT is far, HOD/LOD or nearby breakout level

-2nd entry is immediately if moves in favor, double size

    -Stop is a few ticks.

    -PT is same as core.

-3rd entry is immediately if moves in favor, double size

    -Stop is a few ticks

    -PT is 1R. A few ticks in favor, take off at 1st sign of trouble. or 15sec chart. 

        -This is my largest add, if I can get a few ticks on this, that amounts to my risk covered and because of my size, a large chunk of profit. 

    -TRAILING STOP is 50% after 1R reached. Do not give back quick gains on these adds. Core     will remain if 1. a win and 2. market favorable.

    -After PT hit, 2nd entry out on 15sec chart. or 1min low break. 

    -Core out on 1min theme change. 9/20 break, market change. Clear pattern break. 

1st 30 min of trading is different than any other time period after. Why? Spread, risk, trend, internals. This is price discovery phase. This is when market is at it whippiest. Both favorably and unfavorably. Hence tight stops and quick partials. But always room to give price a chance to run. But not too much room. Balance. 

1st 2 HOURS

Selling

    -Dont be early. These are low hanging fruit plays. No reason to get in asap at the perfect price for max $. Wait until clean and clear and go for it. Shogun blast, not sniper. Can always scale in.

    -Again, there is no reason to rush on selling options on SPY/QQQ. You will not regret missing that extra 10%. That 10% costs you majority of your losses.

    -Internals must be clear for sell. I sell based on what wont happen. If internals tell me it could happen, why would I sell?

    -Only price pays, but price also lies. This means I need more than just price to make a decision. Time is on my side. 

    -For a sell trade to be valid, internals and market trend must be clear.

    -Generally the safest strike is the one furthest away. Around 4 strikes you're looking at .10c options. 3 around .20 and 2 around .50. I want to be safe but not so safe the reward isn't worth it. 

    -Trading near ITM is how I can be more aggressive for bigger payout. 

        -SPY/QQQ, 0DTE options. 

            -Risk based on chart and conditions.

            -PT always 90%       

            -Entries are based on the obvious. If not obvious, no trade. 

                -Internals clear direction

                    -Trend higher, 600+ on peaks, not reaching -600 on dips.

                    -OR for reversals, failing to make LL and making HH. Trendline breaks. 

                    -ADD/ADV trend higher. Not making LL. Divergence.

                -SPY/QQQ clearly strong or not weak. VWAP is main variable and how it acts around it.

                    -1st entry based on chart turn or break. 

                        -Stop is 25% MAE

                            -If -25% hits and internals still in favor, give chance for pullback.

                                -If no pb, then out at -50% MAX

                                -Unless coiling under stop (5/10min), or internals against, then out on break.

                                    -Can always re enter if fails. 

                            -Stop location is several ticks below pivot low. 

                    -2nd entry in if works right away. 

                        -Stop is same

                    -3rd entry 

                        -Conditions must remain in favor

                        -Only after significant pullbacks

                        -Adding to a loser here is OK. As long as conditions are favorable and vwap still on my                          side and not reclaiming opposite direction.

                       * Very important note. Adds are not acceptable until internals show favor. If                                      pullback to vwap and I am negative in trade, and internals now break lows against                           me, I must give the trade time for internals to reset and prove favorable again. Do                          not add just because of location. We add for conditions. Low hanging fruit. Risk                             conscious.

                            -Stop is same as 1st entry, but closer now as there is new structure to analyze. 

                    -4th entry is if 3rd works right away/or when next break in favor comes.

                            -Stop is the same. 

                

            *Going slower allows me to get bigger prem as mkt continues to confirm my idea. If im all in at once, I 9/10 go down a little bit at some point. Scaling is great here to allow that wiggle room with added bonus of larger prem.    

-If I must close a sold options trade for buying power purposes, Then do it. Buying is where big $$$ is. Sell is $. 

            -Early Exits

                -Early exits are only acceptable in the following

                       -Winner

                            -Price near HOD/LOD or other form of HTF S/R and cannot break through AND                                     internals are against me. Exit All on turn against me.

                                   -I want to be involved when market is clearly on my side. No reason to have a                                         position when market is not synched with trade idea. 

                    -Loser

                        -VWAP build against me and Internals Against me. Out on break of recent pivot hi/lo.

                        -Always give a chance for PB though. Dont just get out on break above vwap, unless                             VWAP and pivot were original stop.

Reversals

    -Full size requires a pb that holds with internals in favor/diverging still. 

        -Stop is at 33% MAE

Buying

    -Only trade with the trend. It is almost never worth it to trade against. 

    -Start small, add big, add huge. We add to winners. 

    -Internals must be in favor.

        -If long, must be majority above 0 with trend higher and new highs created and failed lows.

        -If short, opposite. 

-1st entry is on break or vwap turn. This is my core. 

    -Stop is wide

        -Pivot levels, but chance for fakeouts.

            -Only time I exit on stop breaks, is if market/internals are clearly against me. 

    -PT is far, HOD/LOD or nearby breakout level

-2nd entry is immediately if moves in favor, double size

    -Stop is a few ticks.

    -PT is same as core.

-3rd entry is immediately if moves in favor, double size

    -Stop is a few ticks

    -PT is same as core.

-Early Exits

    -Winners

        -These aren't trades to hold that long so if I get a parabolic/capitulation move, it is best to take it off on 1min high and hold.

        -Options lose value extremely fast. If there are warning signs, internals shift, pivot/trend break,             SPY/Q Shift then it is best to exit asap.

    -Losers

        -2nd/3rd add are cut asap both win and loss, no time to give warning signs. 

        -Core can be cut if market shifts against me and changes theme. 

AFTERNOON

    -Buy only unless Very tight long HTF range at risk. 

    -Sell only on very clear circumstance. Drift is good. No reason to avoid selling. 

LAST HOUR & 1/2

    -Sell and buys are still ok.