Michael Schweighardt
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Everything posted by Michael Schweighardt
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update on my tradebook. It's coming together. i have a notebook. like from high school. i write in this everyday. I open to a new page in the morning and write the date across the top of the pages. then i just write throughout the morning during trading. i write anything and everything. i make notes about RULES to add to myself. My notebook goes from January 13th to now. i went through the whole notebook and made a list of all the notes i put a ⭐ star, highlighted or put an * asterisk next to it. here is the raw list: i copy and pasted the raw data into Grok and it gave this back to me: General Trading Mindset Patience is key: Treat trading like fishing—wait for the right setup, don’t force trades. If you miss an opportunity, let it go and look for the next one. Slow down: Especially on Mondays or after a 3-day weekend. Start in simulation (SIM) mode to ease in. Trend alignment: Trade with the trend, not against it—“the trend is your friend.” Risk Management Daily risk limits: Never risk more than 2% of your account per day ($100 on a $5K account) or 1% per trade ($50 on a $5K account). Phil’s key risk: Cap risk at $45 per trade when using this strategy. Loss streak rule: After 3 losses in a row totaling under $60, take a fourth trade; otherwise, pause. Trade Setup and Entry Indicator confirmation: Look for 5 out of 6 indicators to align before entering a trade. Wyckoff phase awareness: Assess the current market phase (accumulation, markup, distribution, markdown). Retest probability: Wait for a retest after a move—70% likelihood (per Avi). Multiple time frames: Use higher time frames (30-minute and above) for confirmation. Position sizing: Take smaller sizes for B+ setups, aiming for a 3R (3:1 reward-to-risk) target. Trade Management Hands-off approach: After entry, let the trade play out—don’t interfere unless adjusting the stop to breakeven (B/E) after hitting 3R. Phil’s key adjustment: Move stop to B/E after hitting the first target. Profit target: Aim for 80% of the Average True Range (ATR) as the target. Predefined exit: Know your exit strategy before entering the trade. 3R prerequisite: Hit a 3R trade before attempting a Phil trade. Specific Scenarios Earnings week: Learn how to trade stocks during earnings periods (implies higher volatility—study this separately). Monday caution: Go slow, especially after long weekends, and start with SIM trading.
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i'm working on my tradebook today. i was also looking for examples. there's another post i found: building a tradebook i will post my tradebook here when i get something complete. right now, i have notes on paper.
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Look at this. I've been a little behind with keeping my journal updated. finally updated it today. Something JUMPED out when i took a look at the last 30 days calendar.
Thursday is not a good day for me to trade is what i am seeing. If i just take Thursday's off from now on until i can identify my issue. i have a separate notebook with all my notes from those specific days. i will review it today and figure out what's happening. my trading buddy said that i might have already solved my issue by just being aware of it. We'll see. i'm going to dig in and take a closer look.
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🥧 (π) Day
14-March-2025 Friday 🟥 day (SIM)
Friday is not a regular trade day for me. Personal stuff to do every Friday.
I just take it slow in SIM on Friday for practice and I will take a trade if I see it is A+++.
Didn’t take any real trades today. Just fucked around. Practiced. PLTR was disappointing. I had no business trading it.
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13-March-2025 - Thursday 🟥 day (SIM)
Not feeling great today. Tired. Shitty sleep. Shitty mood. My wife got me all fucked up yesterday.
SIM day. My psychology is fucked up today and my mind is not clear and not functioning at an acceptable level.
While I’m here writing this…. I need to cut down my coffee to two cups per day, exercise every day and stop taking THC in any form.
No Jarad today. Maybe that’s another sign to just chill today.
In SIM. Not in the zone. Shitty trades. Took 8 trades. -$46. One trade hit by accident. Not intentional.
Just not focused today. Need to take today off and review and reflect.
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i can't even look at the market right now. i'll probably get upset and have FOMO. i'm going to veg out and just get my brain back in order and do some exercise and no more coffee today and limit my THC intake. i can control only my self and how i react. i'm writing this for me. I don't anticipate anyone actually reading this.
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12-March-2025 - Wednesday 🟩 day (SIM)
i'm phoning this one in today.
Feeling okay today. Sleep was okay. Not great. Got to bed a little later than usual. Up on time. Feeling okay. Hydrated. Some light exercise. Ready for some trading.
It was a good day. 15 trades! Probably over traded. Not sure. It takes me a few tries before i catch my move. I can be wrong 4 times and still break even.
i had a great day, but a family loved one can say just one thing and change the mood for the day. 😒😞
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11-March-2025 - Tuesday 🟩 day
My Physical is okay. I did some exercise yesterday. Some stretching and strength. I need to do more cardio.
Emotional is okay today. Not good, not bad. Just fine.
Mental is fine. Feeling okay. Nothing special. Ready to trade.
What a day. Hit target on my first trade. I am in SIM. I have two SIM accounts. I am treating SIM 1 like it’s my real account and SIM 2 for practice and screen time.
Comforted knowing that I could be wrong 4 time's and hit 5 to break even. Slow down. Be cautious. Reevaluate if the trade strategy is still valid even though it's only a few seconds later. Maybe I noticed something out of the corner of my eye that tells me not to take the trade anymore. Don't ignore that. Investigate that. Whatever it is. My style of trading has many opportunities and is not to be rushed. Choose another ticker. Move on to another stock if failed three times. This is a valid rule, but…. I have hit on my forth. I’d say 4 is the magic number, but stopping anytime I feel I am on ‘tilt’ is acceptable.
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10-March-2025 - Monday 🟩 day (SIM)
Stopped out 5 times before finally catching the move.
Traded AMD short. 3 Option contracts. ATR was about 5. I kept getting in too early and getting stopped out. i got annoyed and waited. Noticed it hit it's top and started to finally reverse. that's what i was waiting for and trying for.
i went short and i went a little heavy. i usually take one contract, i took 3. my targets were 3R, 4R, and 5R. All hit!
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so.... i lost 5R on those first 5 tries, then i hit on that last one. the last trade had 3 targets. 3R + 4R + 5R = 12R.
i still was green today with 5 losers because 12R - 5R = 7R profit.
my money amounts are small right now. 1R = $15.
the point is, i can scale up. i can make 1R = $100 or whatever. as long as i know my system can get me green after 5 losers.... i will be just fine.
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The Composite Man is a single, highly skilled entity with a clear strategy who:
- Accumulates stocks at low prices (buying when others are selling, often during periods of fear or capitulation).
- Distributes stocks at high prices (selling when others are buying, often during periods of euphoria or greed).
- Creates trends, tests supply and demand, and engineers conditions to profit from both retail traders and less-informed participants.
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Pedagogy, most commonly understood as the approach to teaching, is the theory and practice of learning, and how this process influences, and is influenced by, the social, political, and psychological development of learners.
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The "Titans" of Technical Analysis
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Charles Dow:
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Pioneered the Dow Theory, the foundation of technical analysis.
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Late 19th-century journalist and co-founder of Dow Jones & Company.
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Identified primary, secondary, and minor trends; emphasized price reflecting all info.
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Ideas from Wall Street Journal editorials, not a single book.
- Key for spotting market direction via trend confirmation
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Pioneered the Dow Theory, the foundation of technical analysis.
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Ralph Nelson Elliott:
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Developed Elliott Wave Theory in the 1930s, focusing on market psychology.
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Former accountant who saw repetitive wave patterns in price movements.
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Five-wave trends, three-wave corrections, fractal in structure.
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Complex and subjective, loved for capturing human sentiment.
- Ideal for traders attuned to emotional market cycles
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Developed Elliott Wave Theory in the 1930s, focusing on market psychology.
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W.D. Gann:
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Early 20th-century trader blending math, geometry, and mysticism.
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Created Gann Angles and Square of Nine for price-time predictions.
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Linked market moves to natural laws and celestial events.
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Polarizing—some praise his precision, others find it arcane.
- Known for time cycles and key level analysis.
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Early 20th-century trader blending math, geometry, and mysticism.
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Richard Wyckoff:
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Early 1900s stockbroker decoding “smart money” moves.
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Wyckoff Method tracks accumulation/distribution via price and volume.
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Focused on market structure and institutional intent, not indicators.
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Urged traders to think like the “composite man” behind the charts.
- Prized for practical, tape-reading skills.
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Early 1900s stockbroker decoding “smart money” moves.
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John Bollinger:
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Introduced Bollinger Bands in the 1980s, a volatility-based tool.
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Financial analyst turned trader; still active today.
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Bands use two standard deviations around a moving average.
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Simple, effective for breakouts and reversals.
- Keeps relevance in modern, algo-driven markets.
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Introduced Bollinger Bands in the 1980s, a volatility-based tool.
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Arthur Merrill:
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Mid-20th-century statistician/engineer turned analyst.
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Identified 32 chart patterns (M1-M16, W1-W16) for reversals/continuations.
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Built on Dow’s ideas with statistical rigor; wrote Behavior of Prices on Wall Street.
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Focused on observable, repeatable price formations.
- Bridges charting and quantitative analysis; patterns still watched today.
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Mid-20th-century statistician/engineer turned analyst.
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Charles Dow:
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People ask me about getting into day trading. I've thought a lot about the answer.
I'd recommend these three concepts / ideas / subjects to learn and get it over with. It's boring, but necessary. It's not as boring after you learn it, but it's tough to grasp in the beginning.
- The Wyckoff Method
- Elliott Wave Theory
- A Complete Guide To Volume Price Analysis by Anna Coulling
BEFORE reading those three....
be sure to read "How to Day Trade for a Living" by Andrew Aziz! -
Still studying this stuff. Aspiring to be as proficient in this stuff as @JaradBBT 😂
i got lot's of years to go to be like @JaradBBT 🤣
Anyway, so..... you can use the Elliott Wave to confirm Wyckoff events. To make sure you're looking in the right place. It's like a confirmation.
That's it. They work together. It's best to learn both and use both concepts / theories with each other.
It really helped me to understand where we are at when looking at a new stock for the first time. To be able to tell where in the cycle we are and make decisions on how to proceed from there. It helps to figure out what phase we're in.
Also, it's not terribly hard to learn. It was a lot easier than i thought it would be. It's not overly complicated. a little bit, but mostly simple after you understand a few concepts. definitely not as hard as i had originally anticipated. i'm still finishing up learning about it, but i already have the main ideas and concepts figured out in my brain 🧠.
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West Covina (Pasadena, Pomona)
Michael Schweighardt replied to Michael Schweighardt's topic in BBT - SoCal Traders's Topics
Trying to keep this post alive and relevant and at the top. Hoping to attract locals I can meet up with and talk shop. With that in mind, I thought about just popping in here and posting about what I am currently studying. I'm studying The Wyckoff Method and Elliott wave principle (aka Elliott wave theory). -
West Covina (Pasadena, Pomona)
Michael Schweighardt replied to Michael Schweighardt's topic in BBT - SoCal Traders's Topics
“Sheer will and determination is no substitute for something that actually works.” - Jason Klatt 📈 📊 🔄 💱 💹 🤝 💲 🔁 💸 📉 💰 💎 -
Hello traders, I'm looking for a trading buddy or group. We can create it or join an already existing one. I'd like to review my trade book. Talk shop. Go over trades, strategy and discuss. Do some education courses together. I've been trading for almost a year. I use DAS and IBKR. I'm in West Covina. I prefer to meet in person if we're local to each other. I can get a study room for us at a library or Mt.SAC. Hope to hear from you! 🙂 SEO: Valinda, Baldwin Park, West Puente Valley, Covina, La Puente, Avocado Heights, Citrus, South San Jose Hills, Azusa, El Monte, Walnut, Duarte, Hacienda Heights, Charter Oak, Glendora, Southern California, Los Angeles
