Chapter 1 Trading Journal # 7 - 01/14/2019 +$95
Was locked out for the day ( which is bad) I need to eliminate this kind of behavior.
- Rule #1 — if you got stopped twice for a loss — reevaluate before a new entry.
- Rule#2 — do not go long, unless there is a second bottom. Wait for it!
- Rule#3 — GTFO if your “short rejection” thesis is invalidated ( especially ascending triangle). Scratch is cheaper than being down on the stock.
- Rule#4 for morning setups — with good entries — just get stop for breakeven and re-enter. There is no need to hold through a rip.
- Rule#5 — Do not short runners unless they are below 9EMA 1 m
- Rule#6 Think faster with the news. Long good ones!
- Rule#7 Watch for a higher low on 9EMA as the first sign of problems
Sense Ratio 5/14 = 28%
$ATVI first trade — was a higher low setup — completely legit here. waited for rejection and got in. Considered it as a scalp and got out for a quick gain
second trade — decided to go long, sold something into strength
Re shorted right away — got out the moment I realized it is not going down. This was a good save for me and I need to continue working on this skill.
- Lesson Learned: If you clearly see this is not the setup you’ve been looking for — GTFO. Don’t wait and lose money. It’s better to have a scratch trade — than lose.
Trades that made sense 2/3
$FTK Shorted into PM resistance — the main mistake here was to have a really wide stop. I should have gotten out once the PM resistance was broken.
Also, my first sign to get out was higher low on 9EMA.
Trades that made sense 2/2
$CGC I should have been long here. Once the news hit the wires I should have gotten long.
Lesson Learned here:
a) go long on great news
b) do not short unless 9EMA is broke. Preferably there is a red candle on 3 min as well.
c) When your “rejection thesis” for an entry changes into ascending triangle or wedge — GTFO ( I did it well today)
Trades that made sense 2/4
- The first lesson here is
- do not go long on the first bottom — Always wait for the second one. - Do not have bias. and if you have it — think premarket what the scenarios that will validate or invalidate your scenario.
- If you got stopped out more than twice for a loss ( not a scratch) Stop and reevaluate. There will be more opportunities during the day, do not lose your chance to be in these stocks.
Trades that made sense 1/5
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