Hey guys, I ran into this great article about patiences over the weekend. As we discussed yesterday in the Pre-Market Show “Motivational Monday’s” segment, this week we want to focus on Patiences. What I love about this article is that it describes patiences in a way that most people don’t see it as. Patiences can be mistaken for just having to wait and this article talks about how is not solely that, it can also be when to act and how not to react to frustration. Is not a Day Trading article but so much can be applied to Day Trading and our personal lives as well. Here is the link hope you find it useful and let’s focus this week on working on our patients but knowing when to act and waiting for good opportunities knowing that our chance will come. Also delaying gratification by working on great trading habits oppose to bad ones that could have immediate gratification but long term damage. The Power of Patiences https://www.psychologytoday.com/us/blog/emotional-freedom/201209/the-power-patience

Hello Everyone, I just finished three months of live trading this past Friday, and about two weeks before finishing I came to the realization that something had to change if I was going to make it through the learning curve. After reading “Trading in Zone” and watching Mark Douglas’s “How to Think Like a Professional Trader” on YouTube, I decided I would create a 20-trade sample set to work on three areas of my trading. (1) Thinking in probabilities (2) Discipline to not give into FOMO (3) Holding my winners longer I figured since this is basically testing out a theory presented in one of the recommended Psychology books, I would make the results public so everyone in the community can see it. The desired outcomes I am looking for at the end of the sample set are: (1) Getting away from thinking trade to trade, and start thinking in a series of trades (2) Taming FOMO, so I do not get over excited and enter a trade too early (3) Confirm my profit taking plan is profitable over a series of trades. All of my indicators, confirmations, and risk analysis that defines my edge is based on information obtained in Andrew’s book and the lifetime Webinars. Edge Defined Strategy: 15 Min ORB – I chose this strategy specifically to force myself to deal with FOMO each and every day. I will caution that my edge does not appear every day, so there will be days that I do not take a trade. While tracking 5 Min ORBs and 15 Min ORBs for the last three months (total of 165 Stocks), I was surprised to see that 15 Min ORBs that meet my criteria appear more frequently than 5 Min ORBs. The percentage of them working is almost the same. 5 Minute ORB Pullback Met Parameters - 52 of 164 Total trades within parameters that have worked - 41 of 52 (78%) 15 Minute ORB Pullback Met Parameters - 55 of 165 Total trades within parameters that have worked - 41 of 55 (74%) Stocks for Watchlist: I select up to three stocks to watch based on the following criteria % Change – Gapped at least 2% but not more than 10% Catalyst – Needs to have fundamental news of sort. Vol – >100,000 Float – High or Medium float (> 50 m) ATR - .50 to 2.00 Trading – Must be trading higher than normal volume Exchange – I prefer Nasdaq over NYSE Edge Criteria: I have three parts risk analysis, indicators, and confirmations Risk Analysis: 1:2 or Greater Indicators: Must meet 2 of 3 Trades within the ATR Small share size with high volume Has a direction upward or downward (higher highs, higher lows, lower highs, lower lows) Confirmations: Must meet 3 of 4 ORBO closes above VWAP/ORBD closes below VWAP No large wicks/candles (wick cannot be larger than body, candles body not larger than ½ ATR) Closes near VWAP (needs to be within $.30) Has a pullback prior to breaking the opening range (cannot go past planned stop) Profit Taking Plan: As I am with CMEG, I have found you have to be very selective on when to take profits otherwise you are giving the money you make back in commissions, so I developed strict criteria for taking profits. Plan A – 1/3 out at just a little above 1:1 (this allows me to be at break-even if the stock moves back to my entry point), all out at profit target (+/- $.03) Plan B – 1/3 out at just a little above 1:1, 1/2 at profit target, all out at technical level or my first out Plan C – 1/3 out at just a little above 1:1, 1/2 out near the profit target if stock stalls near it, all out at the profit target or my first out. Share Size: I am taking share size based on a fixed dollar amount. Thanks to KyleK29 & fjmocke for the hotkey setup. Daily Trading Goal: My daily trading goal is to trade only within my edge, stick to my profit taking plan, control my emotions, and be disciplined. If I meet these then it is a green day regardless of what my P/L says.

I use Rocketbook for writing my daily rules/notes and upload them to my online Journal in Google Drive. It's pretty cool https://www.amazon.com/Rocketbook-Everlast-Reusable-Notebook-Executive/dp/B07CZDXVH5/ref=sr_1_1_sspa?ie=UTF8&qid=1549411256&sr=8-1-spons&keywords=rocket+book&psc=1 FOMO is hard to overcome. Especially when you hear Andrew talking about trades. I used to mute the chat too. Now, I've learned to not really pay too much attention to the chat. I still have it on and I hear it, but I don't use it to trade. When I used to listen to the chatter, I would get FOMO and enter into bad trades. Now, I just ignore it for the most part. We should only take trades that look like like our predefined setups. I monitor a number of stocks at the open, and for the first 8 minutes I just look at the patterns as they are being formed. When I see one of them that is starting move in a way that it may turn into a good setup, then I focus my attention on that one stock and wait for the right entry price. The right entry is critical to a good trade. Once I am in I set my STOP range order. Sometimes, I end up overriding my order or updating depending on how the price is moving. Yes, not honoring defined stop losses is a big issue for a lot of traders. Every time I went Hulk it was because I ignored my stops. Sometimes I even made it worse by averaging. That is why it is so important to address this issue. I totally understand your concern that with stop loses you you may take losses more often. The only way to address this is to set a rule to limit how many trades you take per day. I have a rule of maximum 2 trades per day. Hard stop loses will not help you if you keep taking trade after trade. I absolutely recommend you set yourself a limit on how many trades you take. You should also set a Max Loss per day limit int the DAS Account controls, there is a video in the education section that shows how to do this. At the very least set up a DAS alarm the will tell you when you have lost X number of dollars. X being your max loss per day that you have defined for yourself. My Max loss per day is 2% of my account equity and my max loss per trade is 1% of my account equity, that is why after two losing trades I am done for the day. The limit of 2 trades per day also helps me look harder for good setups. Since I only do two trades a day, I don't want to waste them in questionable trades. It took me a while to switch over to the 2 minute chart. I was so used to the 1 minute chart that the 2 minute seemed very strange and lacking data. Now, I feel the opposite. I haven't used a 1 minute chart in 2 months. When I see one, like in your post, I have a hard time reading the signals because I am so used to the 2 minute chart.

Hey Mike really impressive notetaking journal you got going! Putting in that work off the trading screen is huge for improvement. Great job.

February 5, 2019 $AMD (3 of 20) - Stopped out Sample Set Results P G S 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Picked the wrong stock to enter today out of the 2 that met my edge. Not getting a full night's rest definitely made it hard to focus this morning.