March 6, 2019 - $GE (1st Trade: Stopped out/2nd Trade: Hit Profit Target) I am absolutely sick with the SD Flu, so I am not quite sure why I traded today, probably because I haven't found a good trade in the last 4 days and I knew I was not going to be able to trade tomorrow. It turns out it was a good thing, as I found myself two solid trades. I am most proud of getting Stopped out on my first trade and having zero emotional reaction afterwards. This enable me to take the 2nd trade a few minutes later when the stock re-hit my entry point and I rode it all the way up to the Moving average. Sample Set Results P G S G S 6 7 8 S S P G G S G 16 17 18 19 20

Thursday March 7th, 2019 Sleep: 7.5 hours. Mood: good, ready to trade. I was thinking about how in the market wizards books, a lot of them recommend cutting back in position when you're in a losing streak so i've decided that day's after i hit max loss, i'll only take two trades and if both of those are losers, i'll stop for the day and only take one trade a day until i get a winner. I'm hoping this will help with my impulsiveness to enter trades when i could be waiting for a much better setup. also it will help limit my draw downs by decreasing what i'm losing First trade of the day was an ORBU in HZNP. once i was in i didn't like the low volume and how it was trading so i bailed at the $29 level. it never hit my original stop and did end up hitting my price target GOOD: good setup, it was holding the VWAP and moving higher RFI: chased the entry and didn't stick to my plan MOOD: ok i think getting out on p/a that doesn't feel right is good. CONSISTENT: yes and no. Last trade of the day was in PS. i liked the double bottom on the LOTD and the engulfing above the VWAP. i got in long, i should have got in right at the new 5min high but my entry wasn't too far off. it came to a penny before my stop and then thankfully hit my target. GOOD: good setup, stayed with the trade RFI: chased entry MOOD: glad to get good winner CONSISTENT: yes What i did good today: took trades that were good setups What i did bad today: got out of a trade before my stop. What can i do better tomorrow: stick to your trades, get better entries

March 6th (Live) P&L After Commissions: -$47 Trades: 9 Better, but not there yet. I did a great job with my patience in the morning and I traded with focus and control today. That was really important to me today because of the NFLX trade from yesterday. There were a lot of similarities with how I traded compared to yesterday but I happy to have ended green. $SE - I traded SE three times. Took it short each time at ~$32.20. This wasn't intentionally, just felt they were good shorts at that point. Last one was the one that paid off. Happy with my patience and ability to exit after taking profit and exiting the middle trade at B/E when it wasn't looking great. I was almost ready to end the day here after 3 trades and about $80, but I didnt. My goal is $100-$120 and I felt that $80 just wasn't close enough. $MU - I got chopped up on MU. This is very simliar to me getting chopped up on KSS yesterrday, this time the losses were greater than yesterday. At this point my $80 day is getting closer to a $30 day after commissions. $ANF - Again like yesterday, I decided to short a super strong stock that is up for the day. The difference is yesterday I took it after crossing the 50SMA which is usually safer, but today I saw the weakness and it topping off at $26. I got a great entry, just didn't do the best on profit taking. Like yesterday ANF broke under the 50SMA but didn't do much after came back to test it and broke above. This might be something that super strong stocks do. Need to remember this. But because I had a entry above the 50SMA I was able to get decent profits and stop out my remaining shares for a small profit. Today was a better day than yesterday, but there were some similarities which I do no like. I have lowered my share count from 4000 to 3000. Nothing good ever comes after 3000 shares. I'm usually not upset with the trades that I take during the day, its just the emotional and psychological state that I get in that needs work. I 'm not the best technical trader but it isn't what is keeping from being consistently profitable.

As we progress as traders, we all develop our own ways of managing risk, establishing our rules and deciding on what trades to take. As part of my decision process, I have fairly unique way in which I decide my trade sizing that fits with my philosophy. So, let's start there. Part of risk philosophy is that I always want to take the same dollar risk on every trade, no matter the stop loss I set (or the price of the stock). In order to manage this, I have set up a simple spreadsheet (as part of my trade log) that allows me to quickly calculate the number of shares I should take to maintain a consistent risk target. A couple of notes. First, I do not take a trade based on my account size, the price of the stock or the capital required. I focus solely on the amount I am risking on the trade. I believe this allows me to balance my risk across my trades for the day and not find myself with something like 4 winners and 1 loser, but negative on the day since the loser was huge. All trades should deliver the same value, and carry the same risk. Some other traders do much the same using a concept of "trading units" or "risk units". Second, the risk I take on a any trade will always be consistent for the day and be part of my daily trading risk profile. Once I set these values pre-market, I will not change it for the day. I decide the values based on my previous performance, how I am feeling on the day, what other distractions I may have, and how long I am trading that day. (These parts of my philosophy I can explain at another time.) Here's an example. Assume for the day I have decided upon a profit target of $500 with a daily max loss of $300 and per-trade max loss of $100. Below is a sample chart. Let's say I want to go long $SQ off of the ABCD pattern presented and I am looking at taking a maximum of $100 risk (ie- max loss) on the trade, as per my plan. The current price is $90.35. A reasonable, but tight(!), stop-loss would be $90.05 (the bottom of the ABCD candles), or $0.30. Using my spreadsheet (below), I have set for the day my max $100 loss in cell C2. I simply plug the $0.30 loss target into cell C3, and cell C4 tells me I can take 330 shares. No more, no less! To deviate from this number would skew both the risk and potential reward I could expect from the trade. The only way I can change the share size is to either tighten my stop-loss (increasing the chance it'll be hit, but decreasing how far the stock has to move before I take profit), or loosening my stop-loss (which has the opposite effect). But, no matter what I decide, once I enter the trade, I WILL stick to that stop-loss target. My sheet has auto-calculated the target profit as I will always look for a trade that, at a minimum, delivers a 2:1 risk-reward ratio. This does mean that I have to be confident that $SQ has the possibility of going up at least $0.60. If not, I will pass on the trade. ) I keep this spreadsheet open in a small window on a secondary PC all day. This way, all I have to do is punch in the loss target number into C3 and it'll give me the shares I can trade. While simple, I find this keeps me focused and consistent on my share sizes and ensures I do not take a huge dollar risk on one trade and a lower risk on another. Because, as we all know, it'll be the big one that usually ends up to loser! I hope this helps. If you have questions or comments, please post them! If you have other calculators, please share! Below is a link to the spreadsheet. Remember to set your expectation low! It is simple. The spreadsheet also has a daily p&l log, a calendar that will trade you winning and losing days, and a couple of other tabs in case you find them useful. https://drive.google.com/open?id=1qqTPpgUU2sDf-t8-yKso33KIwdfmL2rF Happy trading!