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rom30

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rom30 last won the day on December 5 2018

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  1. Greg, Thanks for sharing your journey, hard as it may be. One of Andrew's advise is: if you are having a bad streak, you should consider switching to simulator for a while. You can use SIM to hone in the skills to find of the A1setups or other issues that you need to address. If you do switch to SIM, make sure you treat it the same as a real account. Stick to the same rules and don't just pick any trade because there is no real money on the table. BTW, I had a losing day today. I've got chopped on two trades hitting my max loss for the day. I made my journal for the day and thought I was done. The FOMO kicked in when I saw what seemed good opportunities. I broke a couple of my rules and traded again and loss some more. I was on a 7 day winning streak, until today. I blew it. I can only blame myself for not sticking to the rules. I should have just walked away with a normal max day loss, instead of twice that :(
  2. 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.
  3. Greg, I am sorry things did not work out today. A couple of weeks ago, I was having exactly the same issues that you show in your trades. I really mean exactly the same. Recently I had 5 days in a row losing $150/day. The only reason I only lost $150 is because I have account controls with DAS that stops me when I reach this $150 limit. I had a number of common trader issues. Not respecting STOP levels, over trading, revenge trading trying to recover loses, not being analytical on how to select trades, trying to catch ORB within the first 5 minutes of the open, etc. I have taken some corrective actions that seems to be helping: 1- Every morning before trading, I hand write my rules for the day and keep the paper in front of me. It is important to hand write the rules. The human brain seems to process information better when the person hand writes it. 2- I modified my rules they are as follow: A- Wait 10 minutes before taking my first trade. B- Only take trades and setups that I am familiar with around the VWAP and have the potential of 1:3 or 1:2 Risk:Reward. I call these A+ setups. C- Set the stop loss at my risk per trade limit (see risk management below) and respect the stops. I enforce this with STOP range orders. D- Only take 2 trades maximum per day. If my first trade is a winner I stop for the day. If I lose on my first trade I will look for a second A+ setup. If I get stopped for a second time. I stop trading for the day. E- I do not trade after 10:30. If I am already in a trade and it is going my way I stay with it. 3- My risk management strategy is the following: Although, I have a fully funded account I only use 10% of my real equity to trade. If my account has $25,000. I use it as if I only have $2500 equity. So for trading purposes my equity is $2500. My broker gives me a 1:4 margin, so I really have $10,000 buying power to get shares. In other words when I trade stocks, I make sure that the number of share that I take can be obtained with $10,000 or less. I have set myself a risk per trade limit of 1% of the equity. This means that with the $2500 equity, if I get stopped out I will lose $25. I use this risk per trade limit to determine how many share to get. For instance is a stock is $10/share, technically I can buy 1000 shares with my buying power. However, if this stock can move $0.10 against me and I have 1000 share, then I will lose $100 which is way over my risk per share. Thus for a $10/share stock with a potential loss of $0.10, I would only get 250 shares. Now if a stock is $100/share I could buy 100 shares with by buying power, but if this stock has the potential to drop $1, I will lose $100. In this case I would only get 25 shares. There are different ways to manage share size to stay within the risk management. Some people have a set number of shares based on the stock price and price action. When they build their watch list they know for each stock the proper size to take. Other people use hotkeys that automate the share size based on Ask price and buying power. I personally use hotkeys that I have created for this purpose. I use STOP RANGE orders with my STOP LOSS at risk per trade ($25) and wins at 3 times risk ($75). If I make my $75 in my first trade, I stop trading for the day. If I get stopped on the first trade, I lose $25. In this case I look for another A+ Setup to trade. If I win that one at $75, then I will be up $50 for the day. If I lose my second trade, I will be down $50 for the day. I don't do more than 2 trades per day, I either my outcome is one of the following: +75, +50, -50. I use hard STOPs so, I don't let trades run against me. I also use hard stops for my target. So when I hit the 1:3 ration, I get out with a win. Sometimes on winning trades that look strong, I adjust my STOP and end up getting a 1:4 or 1:5 ratio. I use hotkey to set up to STOP orders. In order to be successful with this risk management plan is important to identify A+ Setups that have the potential to give 1:3 risk:reward. Not only do you need to identify them, you also need to enter them at the right price that could potentially give that 1:3 ratio. If the trade does not meet these conditions, wit for it or look at another stock in your watch list. Don't settle for less. If you select trades like this, you will have few losing trade and the winning trades will yield enough to overcome your losing trades. Obviously, this is easier said than done. Selecting A+ trades come with practice. For me this is the trickiest part of trading. Right now this is my main area of focus where I want to improve. This risk management works well with the daily rules. For instance having a rule of a maximum of two trades per day, forces me to look very hard for the A+ setups. Also, the 2 trade rule forces me to stop trading after. My theory is that in the long run I will be ahead. If my success rate at selecting a good trade is 3 out of 5 days (60%), in a week I can expect lose $100, but make $225 for a +$125 for the week. The better I get at selecting A+ Setups, the better it gets. Right now my main focus is identifying these A+ Setups and sticking to my rules. When I had those 5 losing days in a row, every single day I was up for the day but I continued trading and gave it all back and some more. 4- I don't use 1 Minute Charts anymore because they are too "noisy". The 2 Minute Charts allows me to identify A+ setups better. 5- At the end of the trading day, I look at my handwritten notes. Make remarks on what I did right and wrong. I save my notes as part of my trading journal. I also save my trades images with annotations of what went right and wrong. I also save my trade log. I review my journal to determine if I need to change my rules or risk management plan based on bad behavioral patterns that I identify. These are my rules and risk management. They seem to be working for me but they may not work for everybody. I am sharing because it is always good to learn what other people are doing. You probably need to find what work for you. Analyzing your trade with my strategy: For your FB trade you may have had a different view is you only look at the price action after 9:40 AM. You would have seen a doji and waited a another couple of minutes, then you might have seen the price bounce from a support around $165.50. The 2 minute chart might have shown a different perspective that could have helped. The AAPL trade was harder to see because it was trading in a narrow range from 9:35 AM until 9:45 AM. This period is a pure chop. In my mind when a stock is trading like this, it could go either way. I see these setups as a 50/50 chance. Not an A+ setup in my mind. Eventually it went up, but it could have gone down based on the indicators. When I see these chop patterns, I look for other stock to trade or wait a little longer. Following my rules, I would have stopped trading after AAPL, since I have a limit of two trades per day. I think the MSFT might have been easier to read with a 2 minute chart. Although, it is still a hard one to read. In the 2 minute chart you might have seen a shorter candle from 9:50 to 9:52 this could have made you wait another 2 minutes to make a decision. Again, I would have not traded MSFT because I would have already hit my 2 trades per day limit. On PYPL, I don't know if the 2 Min. would have shown better direction. Reversals are very tricky. I stay away from them because I usually lose on them. I like trading around the VWAP especially between 9:40 and 10:00 AM. After 10:00 AM, the patterns seem to change and I don't know how to trade them. I have taken some successful reversal towards VWAP, but most of the time I can't figure out the right time to enter a trade and end up getting chopped in a move like your first PYPL trade. Definitively, I would have not traded PYPL becuase of 2 trade limit, it is late in the morning, and it is not the a setup that do well with. I hope this helps.
  4. @KyleK29 I wish I had seen this post a while back. I just came across it last night. I have been working on a set of hotkeys for risk management for several weeks now. I just started a new post about it. I think your post would have helped me develop mys scripts sooner. My scripts are a bit different than yours, there are some similarities. If you have time, check it out and provide feedback. Thanks.
  5. rom30

    Introductions

    Hello, My name is Romeo and I am relatively new to day trading. Thank yoAlex for creating the Detroit Club. Looking forward to exchanging ideas.
  6. rom30

    Daily Profit, Daily max Loss

    I think that if taking partials works for you keep doing it. This is what Andrew does. With a small account it is difficult to make good use of partials especially in chunks of 33%. I think partials make more sense when you have a large account and taking large positions. I think that with your account size the two best strategies are: 1- Don't use partials. Just get completely out when you think is the right time. 2- Do a partial of 50% at predefined level (1:1 or 1:2) and then wait to see if the stock is moving in your favor or against then exit completely when you consider the right moment. Also, please note that taking partials is not mandatory in every trade. In some trades it makes sense to take a partials and in other it doesn't. It all depends on how the stock is behaving. But if your strategy is working keep using it. Some brokers charge a fee per each order submitted , in this case taking a lot of partial will result a lot of fees that will kill your gains. But, like I said. If your current strategy to exit is working, then keep doing it.
  7. rom30

    Daily Profit, Daily max Loss

    It is probably a good idea. I personally do that on my trades and I think a lot of traders do. You have to stick to your predefined limits. Just because you enter a different trade, you don't change to risk limits, right? If you decide to use $20 as a risk on a per trade, it should apply to all trades. This is the kind of discipline that you need to develop. I know what you are thinking. It is going to make it harder to find trades to take. Well, yes. But it will also make you better at selecting good trades and in the long run become a better trader.
  8. rom30

    Daily Profit, Daily max Loss

    You can manage this by reducing your per trade loss to say $20. In order to achieve this you may have to take a smaller size per trade. Also, you will have to be very selective on which stocks to trade. You don't want to trade a stock that have big price changes in the 1 min candle. For example trade 100 shares of a stock that is $30. If the price drops to $29.80 get out with a $20 loss. But if this trade had a 1 to 3 risk/reward then it could go up to $30.60 and you would exit with a $60 win.
  9. rom30

    Daily Profit, Daily max Loss

    Omar, You may want to consider making your daily loss 1% or $50. Think of it this way: Every day you are risking $150 to make $50. In the long run this risk to reward ratio will not lead to wins.
  10. rom30

    Daily Profit, Daily max Loss

    Mohamed, Just because you decide to increase your Daily Goal to 5%, it doesn't mean it will happen. What is happening is that you are trying to force your trading day to this 5% goal and possibly taking riskier trades, thus you end up losing. Have you considered that maybe 5% is not realistic for you? Your initial Daily Goal/Max Loss/Risk per trade is probably more realistic to achieve. Like, I said you are probably taking risky trades which lead to losing most of the time you enter. I would focus more on how you are selecting the trades to enter. Are you getting the right entries? are you getting in/out too soon or too late? If you keep a journal of you trading days, go back and review what you have done. Find the source of the issue and make a plan to address the issue. I had the exact same issue at the beginning. What I do now is every morning before trading, I write a list of 4 or 5 things that I want to do during the trading day. I keep the list next to me when I am trading as a reminder of what to do or not do. At the end of the day I look at my list and on each item, I write how well I did in against that item. Over time these items become normal things to do and I won't have to write them down. Here is an example of a list: - Wait 10 minute before I start trading - Only enter trades based on levels & known setups - Only enter a trade on a pull back - Exit losing trades quickly once the max loss per trade has been reached - End my trading day when of of the following happens: Made at least 1%, hit max day loss, it is 12:00 PM on the market clock.
  11. Somebody asked The following will work assuming your broker gives you a 1 to 4 margin. For your stop loss to be 1% of your equity you would use this: BP*0.0025 With a 1 to 4 margin, your Equity=BP/4 or BP*0.25 and 1% of this is BP*0.25*0.01.or BP*0.0025. If your broker gives you a 1 to 2 margin then then need to adjust your factor: BP*0.005 Moderator Edit: This forum post has you covered:
  12. rom30

    Fallen Angel

    Is the "Fallen Angel" the same as a "Short Squeeze" ? A couple of days ago I watched a Webinar sponsored by Speedtrader (see link below) titled "How to Find and Trade Short Squeezes in the Stock Market" . I noticed the similarities of the patterns used in the seminar with the Fallen Angel. The seminar was very informative. In particular how to use finviz.com's Screener to identify potential stocks for this pattern. If you have time check it out. https://www.youtube.com/watch?time_continue=2928&v=xldSYgYWwsA
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