Chapter 1 Trading journal #26 - 02/13/2019 -$197 “I just put myself in the hole”

The biggest problems of the day, as usual, are mistakes, I was not fast enough, and I had too much size. I really felt I could have made it back.

New rules:

• Trade on the first minutes only “First-minute drop setup” with this setup — you get out the moment you see bids are holding, and then you reevaluate. You also do not touch any other stocks if you did not plan on trading them.
• Always consider spread when entering a trade, a lot of times your risk is more than you think.
• If you got hurt — get out
• If your thesis is wrong — get out.
• If there is no reaction in your supply/demand zone — you are wrong - get out.
• Before entering the trade, always know not only your risk but what will make you get out. Think more, what do you want to see and what are you seeing?
• Do Not ever have layered orders out!

Once again = Trade ONLY your setups.

Till Tuesday my max size will be 400 shares, where’s 400 shares is an A+ setup; 300 A; B 100–200

$PTX -$5

• To be honest, I chased it here — My ideal plan was to scale against recent highs on the pops — That was a conservative way to play it.
• I played aggressive modality and got stopped out instead of playing conservative and

$ALRN -$62 “First min drop”

• Always GTFO — when the stock is not dropping during the first 3 minutes. Next setup “HOD rejection + Low high” after volume exhaustion.
• Instead of adding I should have been hitting out.

$SOLO — $130

• Do not use layered-out orders. Never. it’s better to miss the fills than get them this way.
• If a stock has never shown weakness = do not touch it or even if you touch only consider them as a scalp!
• The first mistake here was to get short, while 3 minutes window was already invalidated, and I needed a new setup. “HOD rejection” + Low High

Read next: Chapter 1 Trading journal #27–02/14/2019 -$74 Tough day. Learned a lot

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