Hi everyone,
Want to share my thoughts on creating a trading system. We all have goals. I think it is great. The problem is that we focus on goals without having a clear plan how to get to them. Goals are just directions. I think it is very important to focus on creating a trading system with clear steps and directions. Focus on improving that system and improving your identity as a trader. I would love to share my system, and I hope it will be helpful for some of you.
Let me say a few words about myself. I started to trade a few years ago. Like many of us joined Sykes and traded penny stocks. Then I tried five more big and famous chat rooms. I was on a rollercoaster. One of my friends mentioned to check Andrew's room back in January. After watching a few videos I decided to join them. Got a life membership, and now I am here making money, but whats most important I am growing with this community. So let go back to my system... Here is a step by step what I do on a daily basis.
1. Business plan - with out a plan you just a swimmer in the ocean. It's scary and crazy. Be a captain of your own ship. But you gotta build that ship first!
2. Preparation checklist - no matter if you are a scalper or a swing trader, you can not trade a stock without knowing a float, RVOL, reading a catalyst, knowing ATR and more.
3. Having a playbook - have your setups with data collected on them. I am constantly adding charts of stocks in play to my playbook journal. Track your setups.
4. Risk management - is a KING or QUEEN not sure, always trade based of a risk.
5. Trade management - in order to know how to scale in and scale out you need to collect data. Are you good at one and done, or getting out by 10%.
4. Daily report card - track your performance. Trading is a performance job. You gotta know your mistakes, weakness and strengths.
5. Journaling - #1 thing for improvement and tracking all data. Reflect and review. Repeat day in and day out.
So on every topic you have to create a detailed system, and put everything together in a way that it will be easy for your brain to navigate. You brain does not like complicated things and always trying to find an easy way. Make it easy and fun. Create good habits since the day one. Building yourself as a trader will help you to improve your personal life and the other way around. I suggest to read "Atomic Habits" by James Clear on this topic. This is a long journey, and I suggest you to take it seriously. Be a professional. Ask your self a question, "What would a professional trader do?" There is only one way to success, compound of a hard and smart work.
Thanks!