Here are my goals for the next 6 months.
Monetary goals
Daily - $50
Weekly - $250
Monthly - $1000
Set-ups
The Opening Range
Breakouts
Pullbacks to emas and vwap
Emas and
vwap fades or sandwiches.
Risk Management
Risking $50 on a trade
500 shares –
10 cents (11 – 30)
1000 shares –
5 cents (3 – 10)
Daily Process.
I will borrow my mentor daily process and copy and paste most of it here as this serves as my guidance. In near future I will post my daily trading process. But at the moment I am working on it and using my mentor trading process as a guide.
"For me it begins with the nightly scan. I not only use this to help build my watchlist but I use it to get an idea of what happened in the market that day such as if a particular sector is gaining momentum. Even though only 1/4th of the stocks on my watchlist actually ever set up for me as a possible trade, it helps me organize my thoughts and gives me much needed practice in reading charts and formulating plans. I need this structure as being a full time teacher my time to research and chart intraday is very limited. I have to start preparing at night. I will eat dinner, have a little family time, take a shower to shake the day off, and start my scans.
I will borrow my mentor daily process and copy and paste most of it here as this serves as my guidance. In near future I will post my daily trading process. But at the moment I am working on it and using my mentor trading process as a guide.
"For me it begins with the nightly scan. I not only use this to help build my watchlist but I use it to get an idea of what happened in the market that day such as if a particular sector is gaining momentum. Even though only 1/4th of the stocks on my watchlist actually ever set up for me as a possible trade, it helps me organize my thoughts and gives me much needed practice in reading charts and formulating plans. I need this structure as being a full time teacher my time to research and chart intraday is very limited. I have to start preparing at night. I will eat dinner, have a little family time, take a shower to shake the day off, and start my scans.
I use Finviz
for my nightly scans. It is free, it has
a great selection of technical indicators, and it provides a daily chart and
some basic fundamental information. I
have two simple scans that I took straight from the Textbook Trading and TandemTrader DVD’s. I start with Scan 1, and
if there are more than 40 tickers, I’ll run Scan 2 to cut down the list. You can click on them to see what they look
like. Also, I change the charts to candlesticks to take those distracting trend lines off! From there I will begin looking on
the daily charts to see if any of them have the potential to set up for a trade
the next day. Along with looking
for stocks which have immediate setups that are looking like they will
breakout, I will be looking for charts which show me that they can have
nice moves with good range again and again.What I look for comes
directly from the DVD’s. I look for
charts that may be gearing and setting up for an ABCD type move, one
that can set up for an anticipated R/G (red to green) move, a weak open
and
then stabilize for a move upward, or a potential morning washout after a
bullish or bearish close. Here are some
examples of what I am looking for:
Once I run the scans and pick out the charts I like, I will add them to my watchlist in TOS and pull up multiple time-frame charts
to see how they compare to one another. This is an example of SGMS. I
like this stock for a potential trade the next day because on all 3
charts it is close to breaking a key resistance level and half dollar
mark and will most likely run to and possibly break the next whole
dollar.
I still look
at other watchlists from gurus but only to see if they came up with some
of the
same stocks I came up with. I always
have 2 plans for a possible trade. If it
sets up the way I want it to one way or the other, or fits one of the
patterns I like, I trade it. If not, I dump it and move on.
A stock will either open red or green, with strength or weakness. I always wait at least 15 minutes before I make any trade. To make sure I wait I set all of my charts on 5 minute candles for the first 15 minutes to give me a clearer picture of what the stock wants to do. Then I'll switch to 1 minute charts and choose my trades accordingly. I do this because I am trading at work and I cannot allow myself to jump in a trade because I do not have time to watch every tick. After 15 minutes I can usually tell whether I will trade a stock or not. Sometimes I am wrong because stocks are often manipulated by market makers, but more often than not, I am right.
My goal this year is to start with making $250 a day and as my account keeps growing I'll raise it. If I only average $250 a day I'll make $65,000 for the year which is what I make at my job. Since I am starting with $5000 this year my position sizes will not be as high as they have been. I will have to scale them up as my account grows. I will not use leverage like I did last year. I fully expect to be between a $400 - $500 a day average by the end of the year, especially since I have 3 months in the summer to trade full time. I look at it this way, a 1000 share position with just a .25 move is $250. or 3 .10 moves is $300. The only thing that can stop me from hitting that mark daily would be my responsibilities at my job."
A stock will either open red or green, with strength or weakness. I always wait at least 15 minutes before I make any trade. To make sure I wait I set all of my charts on 5 minute candles for the first 15 minutes to give me a clearer picture of what the stock wants to do. Then I'll switch to 1 minute charts and choose my trades accordingly. I do this because I am trading at work and I cannot allow myself to jump in a trade because I do not have time to watch every tick. After 15 minutes I can usually tell whether I will trade a stock or not. Sometimes I am wrong because stocks are often manipulated by market makers, but more often than not, I am right.
My goal this year is to start with making $250 a day and as my account keeps growing I'll raise it. If I only average $250 a day I'll make $65,000 for the year which is what I make at my job. Since I am starting with $5000 this year my position sizes will not be as high as they have been. I will have to scale them up as my account grows. I will not use leverage like I did last year. I fully expect to be between a $400 - $500 a day average by the end of the year, especially since I have 3 months in the summer to trade full time. I look at it this way, a 1000 share position with just a .25 move is $250. or 3 .10 moves is $300. The only thing that can stop me from hitting that mark daily would be my responsibilities at my job."
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