Mark Douglas's 20 Trade Exercise.

[noob 5]

Really good day on execution. Read through my mental and trade checklist, and executed almost perfect. 

 

 

[noob 5]

Yesterday was a hulk day. smh, 3k loss, and should not have traded. Had a market bias, but was too impatient. Bit tired yesterday, and should have sit on my hands. I basically ignored my rules and risk, and went on a revenge trade. Lesson learned. It was on $aapl, and just a hot mess. Looks like a x-mas tree.  No post or copy of the trades, just nothing to learn, other then.  the mental check list to should have caught my mental and physical state of lack of sleep. Either trade with low risk, or don't trade at all. Lesson learned. 

[noob 5]

 

 

[noob 5]

Today was another mess. I need to stop trading first thing in the morning, Let the market set the range on the 30 min. FOMO is getting the best of my setups. Opens are so volatile, and chasing with the normal R is a bit risky. It can certainly pay off, but when it moves against the trade, it puts me in a mental tilt. Then I regress and at the mercy of the market. If i decide to trade the open, need to use smaller size, or bigger stops. Using the pre-mkt range is ok, but need to be super cautious and be ok to sit out the first 30.

Started down 3R, then bounvced back to 6R, and then down back to 5R. The only thing that was good was the will to cut ties, when the trade was going against me. Also, the Risk management tool in DAS closed out the short position, when the max loss was hit. Areas to improve, chasing entries, large Risk size, while chasing entries. Not taking quicker partials, cause price can always move against you.

 

How can I improve from today's mistakes?

Smaller sizes or Bigger stops.

If chasing entries, play small R value, perhaps 1/4, or 1/2.

As far as taking partials, I usually wait for major technical levels, but perhaps take a partial on the micro trends using the 2 min, lock in a small profit, and then ride it out with b/e stop. If it gets stopped out, perhaps the entry is too early. Entry really is the key 2nd mouse gets the cheese concept, and fomo on a move is something i will need to detach myself emotionally. Self-discipline still is the key, which leads to better risk management. Let's go!!! Tomorrow's another day. The good thing about today's trades, I was able to minimize the overall loss to 3.5 R. Big swings, but I can always work on keeping the losses even smaller. 1k up at one point, and gave it back. That hurts. 

 

Perhaps, at the open, due to the volatility, play 1/4R sizes and keep it easy and simple. Just build some green trades, and then slowly build throughout the day. Opening strategy could be more about size control of the R value, versus, the. trade strategy. Something to think about.

 

[noob 5]

Today, lost the focus, but managed to bounce back. the thing that helped was the 9/20 ma crossover indicators. Decided to buy near the s3, after the price was showing support. Big ask near the $870 and decided to play to $865 leve near the vwap. Stay patient, wait for the market to create the structure, till then becareful and play with smaller sizes. Overall Made 7.5R, but the risk management was tossed out the window. Really need to think about my sizing, if I am going to use fixed sizes and stops, versus Kyle's hot key.

 

 

 

[noob 5]

Today, lost the focus, but managed to bounce back. the thing that helped was the 9/20 ma crossover indicators. Decided to buy near the s3, after the price was showing support. Big ask near the $870 and decided to play to $865 leve near the vwap. Stay patient, wait for the market to create the structure, till then becareful and play with smaller sizes. Overall Made 7.5R, but the risk management was tossed out the window. Really need to think about my sizing, if I am going to use fixed sizes and stops, versus Kyle's hot key.

 

 

 

[noob 5]

Thursday was a disaster. Was not mentally fit to trade, and was super busy at work, and was distracted. Try to go long, when the price was extended on the R3, and got on tilt. The pos. size was too large, and just ignored my risks and stops. There are the thing I really need to fine tune. Perhaps, I have to rethink how to better manage the losses while in a trade, before the entry, and during the price movement that moves against my pos.

Keep grinding.

 

[noob 5]

Today's trade was better. I was focused more on tighter stops, and used 50% partial, when the price moves against me. This allowed me to reduce my risk and exposure, by taking a 50% partial, as soon as it moved against my entry point. The level that I would trigger the partial was conservative, typically, 1/4 -1/3 way to my R value Stop. The stop I am using is Kyle's hot keys, not a fixed dollar amount of .50 or $1 from the entry. I try to focus on using Kyle's hot key for add on as well. I took advantage of the free roll, when the price started to pop, and was very profitable. 

The psychology for me is when i have a hard stop, and the price starts to move against me, I get the deer in the headlight moment. I freeze up and watch the price action move and sweep my stop. If I remove my stop, with the hope of price moving back in my favor, I hold the bag, and incur bigger losses then i should. The should of, could of, and would of post trade blues analysis. 

 

So today, here is what I wanted to try, and it worked out successfully. One of the key ideas was inspired by watching the moderators in BBT. One in particular, Brian Pezim, he has this sharp instinct to enter, or exit a trade. Truly impressive to watch. He doesn't hesitate. The problem for me is I try to hold a position, if it works for me, or goes against me. The problem with that, the price can turn at any given moment. Price movement isn't linear, unless it is trend day. Most of the time, the price moves to value areas, liquidity pools, and through its price movement, it creates structures to squeeze both the shorts and longs. Trying to understand when a price is selling, is it a true selloff? or Is it a short play by the bears? Is it a temporary sell off after a big bull run? Sometimes the price movement and the players involved may not be obvious, and almost impossible to predict. One can have an hypothesis, but ultimately, you are at the mercy of the market. Risk is increased with time. Bigger gains can happen with bigger risk, but for PDT, our time is up at the end of the 4pm bell. 

 

My new addition to the trade strats is this. Simple, but helps with the losses better, and manages my losses easier. Partial out 50% out of a position, as soon as it moves against my entry, but still have the stop in place. If it continues to move against me, I have only 50% of my original size, which reduces my exposure and my p/l thanks me for it. If the remaining pos moves in my favor, i will partial out in 1/4 to 20% sizes. This allows me to stay in a favorable trade longer, but remove exposure, when it doesn't The whole concept taught currently is to use a hard stop of 1R, which is your Risk value. then if the price moves in your favor, partial out. This varies from trader to trader. For me, when i had a losing trades on $msft, $Nio, and even $tsla, iniitially, it was easier on the psychology to cut my losess early, and allowed me to mentally stay in the game. Versus, going on a tilt. Everyone knows that once you are on tilt, you do really dumb things.  It is the same concept of tossing in your two hold cards, and putting up your ante in a Poker game. You shouldn't go all in, until you have a really favorable odds in your favor. Till then, if the house allows you to take back your ante, even in small partials, why not.  Poker and trading is done in real time, and you have to be agile. Risking all in on every trade is a losing proposition. 

What I learned, reduce your exposure, and this allows me to have a smaller losses for each trade, and better manage my trades. The Stop placed using a hot key or a fixed size and price is the nuclear option, which I am going to call it "Putin." lol It shouldn't be a destination or a binary decision of getting stopped out, or trade works out in favor and partial out. I can always take another trade, and when it works in my favor, then it is easy peasy. Managing trades when it isn't, well that's where the work and grind is.  Often time, you may have the right idea on a trade, but the entries for me is usually a bit too early, and sometimes late. Either way, unless you are in the sweet spot of a trade, managing your risk is the skill set that helps a foster a nice p/l, and psyche. They all go hand in hand.

 

 

Edited March 4, 2022 by noob

[noob 5]

Bad trade on $Oxy, and $bbby. But made money on $bbby, as a swing. Yesterday, was holding the bags around the $22 level, looking to play to $25. But typically in trend day, it doesn't

bounce back, it will trend. Should have used my 9/20 rule, or watched for the moving averages to level out and show sign of a reversal. lesson learned. It did move in my favor this morning, and closed it

out. Had a large position, and made a nice profit. $aapl, at the open was b/e. Had it long and short, but didn't manage a nice short, until it broke the pre-mkt range,and caught a nice short off the 9/20 entry. Super tight stop, and did a nice partial of 20% moving to the s3. This was beautiful. Oxy, had a directional bias, priced average, and held too long. smh. Still have tons of work to do.

 

 

 

[noob 5]

yesterday was on point A+ for risk/execution/trade management. Pretty pretty good.

 

 

 

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Today, no bueno. Didn't sleep but few hours, and even contemplated to not trading today. Didn't see a clear plan or trades, but still executed half decent with a 2R green, due to risk management. But even that was more like a B+/C-. Without it, I was close to getting on tilt, and losing a nice chunk of change. 

 

 

 

 

 

 

 

 

 

 

 

[noob 5]

Today was a c game at best, managed my trades, didn't do the 30 min orb. It was more of a 9/20 trades, and scalping. Use of partials and b/e stop was the key. Will have better opps in the future, and better game state. Big plus was recognizing my C game, and was willing to sit out, but traded. Managed another Green day, but did take too big of positions on $nio. smaller sizes and risk is the key, when you are not on your A game, A and B, you can do your normal thing, but c or less, play to that level by taking smaller risks.

 

[noob 5]

Good day of trading. Strat utilized the 15/30 min time, but focused mainly on price structure build near the vwap. 

Best part was risk management was B+, and the vpa was A. Price structure builds shows where the stops are located for long and short. The price will move there to do a sweep. That's the destination, and when the structure forms, I will wait for technical and volume analysis, for entry. 

Main thesis was $aapl sold off, and bounced near the s3. Price was supported above the vwap, and as the wedge was forming above the vwap, I added my positions  and partialled as it broke to the 200 ma on the 2min and the s1 level. 

 

The biggest thing I am proud of is not the 6.5R green on a tough. trading day, but the risk management. The use of stop after the first partial @ b/e made my. day. Stopped out with small gains and losses, but when it moved, was able to close with nice green day.

 

 

https://twitter.com/daytradenoob1/status/1503416168102735878?s=20&t=4zlPbzQFBQ7pYFyiWqPGnw

 

[noob 5]

https://twitter.com/daytradenoob1/status/1503742533540757527?s=20&t=kYEMiRQLxoLVqXt9g4B3xw

Greed, and the need to be right, and trying a new strat with super tight stop, well it was a mess. stupid short on $nio, not once, not twice, but 4 times. Lesson learned. Mental grade c-, risk mgmt. B-, self awareness D.

http://s.chartlog.com/vm0mJ

http://s.chartlog.com/kHhGq

http://s.chartlog.com/N-XFE

 

Edited March 15, 2022 by noob

[noob 5]

Did the same mistake as yesterday, ORB trade. Mentally, B grade, and felt good. Lost -4R in the first 10 mins, bounced back, and pulled +12R. Not proud rules broken, smh. Tech Read: B+, Risk control C-, Trade mgmt. C #BBTFamily

@BearBullTraders

@MikeB_BBT

@NormBBT

 

 

 

 

[noob 5]

 

Good morning of trades, 3/3 green. Had a nice two shorts, and managed almost 10R. Just in the zone, had a plan, and the market cooperated. wish it was this easy every morning.