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Day 76 - April 28, 2020 26 Tickets 7 Symbol Red Day Watchlist: Trades SDC (1) - Long 1min - Asymmetrical Triangle (Hindsight Bear Pennant - 1 Not a Playbook Setup) SDC broke down at open and consolidated into an asymmetrical triangle, looking like a big move coming out of here - 5min look like its getting bought up on the hammer, and holding around premarket support level. Got in as it looked like it broke through uptrend line. In hindsight this is a clear bear pennant getting rejected by 9MA Improvement: Was rejecting 9MA on the 1 min, and didn’t hit a new high - shouldn’t be taking this. SDC (2) - Long - VWAP Break and Go SDC pushed down but got bought right back up, was thinking we could see a huge squeeze above VWAP and push to HOD. Was watching for a VWAP break N Go but Wasn’t patient enough…as soon as I got in I realized I shouldn't have got in and lightened position. Stopped out on the rest. Improvement: Need to be more patient with this, VWAP Break n Go has to break through, hold above, then break below and consolidate for a few bars before re entering on the spike up. Also going long right into 50 and 200MA… NAT - Short - VWAP Break and Go NAT had a huge sell off then broke through VWAP. Missed the first VWAP Break n Go so took the next failed pop rejection off VWAP. SPY dumping as well thinking NAT can follow. Patriatialed quickly - 8 was premarket level, MA's on 1 and 5min and round number. Good: Right idea on the sell off Improvement: Need to be careful shorting into the MA's. Also missed a few great doji reversals off VWAP right before this one and right after. MGM - Short - Failed pop (-1 Not a Playbook setup, -1 Adjusted Stop) Took MGM as it was Rejecting off the 9MA on the 5min, 2 shooting stars and SPY turning over again heading to LOD. Liked the way this setup looks, increasing selling and decreasing buying volume and SPY also weak. Ended up working in my favor, but coming to the apex of the triangle and faked me out to the upside as it lifted the 15.96 which held for close to 10 bars. Took half off, then it rejected off the 50MA on one minute and dropped instantly. Partials into Previous level and into previous HOD. Good: Nice job noticing the pattern setup with validation from volume. Should be adding to short position into the break of the bear pennant. Improvement: Trade management killed me here, took partials off as I got scared and squeezed myself for profits. Would have turned out to be a nice winner. MRNA - Short - Failed Pop (-1 Not a Playbook Setup) MRNA sold off hard, came down to PDC and bounced off. Rejected by the MA;s on the 1 and dropped through. Hit a new daily low (also right round PDL - but I didn’t realize this) and bounced. Was waiting to see how it would act around PDC, rejected off and couldn’t break through shorted as it tried to break again but rejected with lower high - stopped out right above PDC. Good: Tight risk off a defined level. Improvement: Need to do more research / be more attentive. Was on secondary but didn’t do levels for it. MRNA Bounced right off the PDL and had a decent rally from there…I shorted right into that. BYND - Long - Ascending Triangle (-1 Not a Playbook Setup yet) BYND hitting 100.50 and VWAP over and over all day creating a large ascending triangle. Took ait as we got tight to the tip and MA's were all pushing up into the APEX. SPY was strong as well and was pushing to HOD's SPY also pushed up. Partials way to soon - 1st partial was a scared partial. @nd was at previous pop and just took them into pop all the day out. Final was an adjusted stop which got hunted. Good: Good patience waiting for this to play out and come to you vs chasing. Manual trade entry - Limit order with stop placed vs Hot Key - provided for a better fill. Improvement: Potentially to wide of a stop - was allowing some room in case a fake break to collect stops and rally. Trade Review Was an okay day, had a few great ideas and noticing they are coming from Triangle Ascending and Descending. From some of the winners, and even a few losers they were the opposite play. Adding these to the playbook. Other than that I really need to work on my trade management. Have some plays which could have been much better than they were PnL wise all that I handled the situation wrong while I was in the trade. What I did well at: Validating price action with volume. Getting into a couple of moves on the pullback vs always buying into the resistance. Trades Daily Report Card 1. My Playbook Setups Only (So far ABCD, VWAP Break N Go, looking to add another 2-3) = 3/6 2. Placing trades with defined risk, and profit targets (No adjusting) = 4/6

When you have nothing better to do because you trade full time and are stuck inside.... Sent a downloadable link to @Abiel and @Andrew Aziz

The Day Trading Plan discussed in this YouTube video is now available for download here. Supplementary resources: Sample Playbook Template.

Since everybody has different levels of experience with the stock market, it is difficult to have a one-size-fits all objective list. I am going to try to cover all the areas that you should have a firm grasp of by the end of the 3-months. It is a rough outline of what I have learned after 4 months of paper/real trading. This post will be a work in progress, but here goes. ~IN PROGRESS~ Day Trading is probably the most deceiving profession on the planet. On the surface the concept seems very simple: buy low and sell high. Then why is it that 90% of traders fail at his endeavour? Surely they aren't trying to do the exact opposite of what is profitable. Even flipping a coin has better odds at 50%. Let's take a look under the hood to see what is required to be a successful trader. CLASSES There are four classes in total. Each one runs about 1 hour, except for class 4 which is almost 2 hours. It is recommended that you attend the classes multiple times to reinforce your knowledge, refresh the concepts, as well as stay updated on any new material. It is your responsibility to go over the slides and understand what is being taught. If you have any questions, please ask them during class, in the forums, or in the chat. The community is always here to lend a hand. You should also bookmark the Bear Bull Traders FAQ and DAS Trader Pro FAQ. Some members choose to read additional day trading books, as well as practice trading replayed market data. What you get out of the course is directly related to how much effort you put in. In a sense, the entire 3-months is more of a self-paced learning program than a structured course. There are no quizzes, no tests, no projects and no scoring. It is up to you to wake up every morning and spend time in the chair mastering the trade. Nobody will hold your hand, watch over your shoulder, or monitor your performance in any way. That is how day trading is in real life: absolute freedom to stake your fortune or self-destruct and implode. STOCK MARKET BASICS -Warren Buffet once said 'The stock market is a device for transferring money from the impatient to the patient.' This is true for long term investing and for day trading. Remember that for each transaction you see in the Time/Sales window, there is a buyer and seller. When a stock is down 20% on the day and you short it, somebody is on the other side of that transaction buying. You don't know their hand though. They could be covering their short from earlier, it could be institutions loading up for long term investment, somebody hedging an options contract, etc. Beginners often gloss over this point. Volume represents transactions being filled; a transaction always involves two parties. You are trading against other people, not the market itself. -Exchanges: NYSE, NASDAQ, AMEX -Market Makers -Pre-market and after-hours -High Frequency Trading (HFT), algorithms -Bid, Ask, Spreads -Short-selling. What does it mean. -Short inventory. Why are some stocks shortable and others not -Short Sale Restriction (SSR) -Short interest, or Short Ratio -Share float -5-cent tick programs -Circuit Breaker Halts -News, earnings, and catalysts -Buyouts -Pattern Day Trade Rule >>> Make sure you understand the above prerequisites before proceeding any further. Investopedia is a great resource. CHARTS -Candle Sticks. How to read them. -Understanding Price Action. Bearish vs bullish candles. Indecision candles. -Higher highs and higher lows / Lower highs and lowers lows -1-minute vs 5-minute chart -Moving averages and how they are calculated in different timeframes -VWAP. Why it's an important intraday indicator >>> The above concepts are not tool-specific and apply to all trading platforms MECHANICAL ASPECTS -Knowing your tools (DAS) -Platform, Hotkeys, Scanners, Journaling -Order entry. Limit, market, marketable limit, stops -Level 2 -Calculating commissions and tickets >>> The goal is to familiarize yourself with DAS and be comfortable using it. For some this could take days. For others this requires weeks. TECHNICAL AND STRATEGIES -Finding Stocks in Play -Good vs. bad pre-market price action -Finding Support/Resistance Levels -Day trading Strategies. Master recognizing the patterns, entries, stops, targets. -ABCD / Reverse ABCD -Bull Flag Momentum / Bear Flag -Fallen Angel -VWAP False Break Out -VWAP Reversal -VWAP Trend Trade -Opening Range Breakup / Opening Range Breakdown -Red-to-Green / Green-to-Red -Moving Average Trend Trade -Top Reversal / Bottom Reversal -Time of Day: Open, Late Morning, Midday to Close >>> Everybody will pick this up at a different pace--learning to recognize different strategies, figuring out which one works best for you (at what time of day), etc. MANAGING YOUR ACCOUNT -Risk Management -Position Sizing -Money Management PRACTICE THE PROCESS OF EXECUTING A GOOD TRADE Putting on a trade is more than buying at point A and selling at point B. You need to combine everything you learned to get in and out of a single trade properly: 1) finding good stocks in play 2) identifying chop and staying away 3) identifying the strategy or setup 4) quickly calculating risk-to-reward 5) getting a good entry and avoid chasing/jumping the gun 6) managing the trade based on live price action and new information which the market is providing you 7) taking profit (often overlooked, yet it involves half of the entire trade) 8) you need to do all of the above while keeping your emotions in check and fighting your psychological demons >>> Over the 3-month period, you will repeat this process hundreds of times. This is where the bulk of your time will be spent. Learning to take good trades and improving on your mistakes. This is the only path to consistency. Don't waste time trading unrealistic sizes on low-float stocks because you won't learn a thing. >>>Some of your trades will turn out to be winners, some will turn out to be losers. Most likely you will have a few trades that blow up your practice account (but don't worry, you weren't taking things seriously and would never do it live, right?). GOING LIVE -Choosing a broker -Starting small and gradual position sizing -Returning to Simulator -Peer-to-peer support PSYCHOLOGY OF TRADING -Why do most traders fail here -I'm highly intelligent, analytical and very disciplined. Why this will ruin your trading. -I'm a good poker player. Good--you will be playing against yourself -Revenge -Overtrading -Fear of missing out (FOMO) -Fear of pulling the trigger -Trading scared -Averaging down -Turning a day trade into a swing trade ~IN PROGRESS~