Chapter 2 Entry: W - "The hard reality of trading is that, if you want to create consistency, you have to start from the premise that no matter what the outcome, you are completely responsible." - Mark Douglas A - Mark lays out the ultimate truth of trading and of life in general: we are fully responsible for our actions and the results of those actions. Not someone else or something outside of us. A - I am building the practice of always asking, "What did I do right or wrong with my trading" or "What could I have done better or the same for next time". For example, if my power goes out and I'm in the middle of a trade, I should not sit around and blame Comed for my woes, but go purchase and install a UPS battery backup to keep my computer on during power outages. Another example: if my trade fails I should not think that the market worked against me, but accept the loss and explore how I can enter a better trade next time. I am truly in charge and when things go right or wrong, I did that. 🙏

What does this do: This 2 part script will allow you to set a stop loss, set a future price on your chart where you want to enter, and dynamically calculate the shares you can afford based on a fixed dollar amount. What do you mean by “2 part”?: With the current limitations of DAS, it's required to use two scripts (hotkeys) for this to work. 1. The first hotkey will set where you want your Stop Loss to be 2. The second hotkey will set where you want your Entry to be Example: The High of Day is $49.99 The current price is $49.50 and trending back up towards HOD The L2 has lots of strong ASKS at various price levels above $50.00 You want to enter if it breaks $50.00 Double click on the chart where you want to set your Stop Loss - $49.90 You hit Hotkey 1 Double click on the chart where you want to set your Entry - $50.01 You hit Hotkey 2 If and when the price hits $50.01 it will automatically enter you into the trade with your fixed $Risk and place your Stop Loss. ------------------------------------------ I used this on NVDA today at 9:51 ($415.63) for a HOD break. Luckily my preset stop was also set right below $415 at $414.97, so I didn't get wicked out 🙂 I actually set it up around 9:40 and wasn’t even looking at the chart when it entered for me! By the time I noticed I was in the trade I was already in the money! Scripts: Long $20 Risk: Part 1: StopPrice=Price Part 2: DefShare=BP*0.97;Price=Price-StopPrice;SShare=20/Price;Share=DefShare-SShare;DefShare=DefShare+SShare;SShare=Share;Sshare=DefShare-SShare;Share=0.5*SShare; SShare=Share;Share=Price*100; Price=StopPrice; DefShare=Price*100; Price=Share/100; Price=Price+StopPrice; StopPrice=Price; Share=SShare; TogSShare; Price=Price+.05;TIF=DAY+;Route=Stop;StopType=Limit; Buy=Send; Share=DefShare;Price=Share/100; StopPrice=Price; DefShare=400;TriggerOrder=RT:STOP STOPTYPE:MARKET PX:StopPrice-0 ACT:SELL STOPPRICE:StopPrice QTY:Pos TIF:DAY+; Short $20 Risk: Part 1: StopPrice=Price Part 2: DefShare=BP*0.97;Price=StopPrice-Price;SShare=20/Price;Share=DefShare-SShare;DefShare=DefShare+SShare;SShare=Share;Sshare=DefShare-SShare;Share=0.5*SShare; SShare=Share;Share=Price*100; Price=StopPrice; DefShare=Price*100; Price=Share/100; Price=StopPrice-Price; StopPrice=Price; Share=SShare; TogSShare; Price=Price-.05;TIF=DAY+;Route=Stop;StopType=Limit; Sell=Send; Share=DefShare;Price=Share/100; StopPrice=Price; DefShare=400;TriggerOrder=RT:STOP STOPTYPE:MARKET PX:StopPrice-0 ACT:BUY STOPPRICE:StopPrice QTY:Pos TIF:DAY+; Known Issues: I have seen the script fail and only enter me with a small number of shares. Uncertain what caused this, but I’ll be looking for it again. Final Thoughts: I’ve been testing this in SIM for a week and wouldn’t advise using it live without doing the same. I know a lot of people have been asking for something like this - I would love to hear what other scenarios people would use this for!

W: “Randomness is unstructured freedom without responsibility. When we trade without well-defined plans and with an unlimited set of variables, it’s very easy to take credit for the trades that turn out to our liking (because there was “some” method present). At the same time, it’s very easy to avoid taking responsibility for the trades that didn’t turn out the way we wanted (because there’s always some variable we didn’t know about and therefore couldn’t take into consideration beforehand).” A: Mark recognizes our inclination to do what we want and be free from rules and structure, rather than doing what is hard and sticking to a well-defined plan. A: As a newer trader in sim, I can fully appreciate Mark's advice that we must have well defined plans. Everything feels very random to me because I am resisting the need to stick to a well-defined plan. I find that I am switching up my plans/variables and allowing way too many to creep in before I allow myself to perfect the ones I am currently working on. I think it stems from feeling like maybe there is a "better" set of plans and variables to try out. Stick to the damn plan is my new morning motto!

Use IBCO as Firm ID.

That’s great, Miguel. It’s so easy to blame others, the market, etc. Learning to take full responsibility for our actions is an important lesson in trading & life. Look forward to chatting soon!

Hey Dan, great quote and observation. Dr Reid teaches us to minimize all the things on our charts....KISS (keep it simple stupid) is my favorite acronym to apply to trading! My new strategy I am working on I will name KISS....lol