Live Journal Exercise – Learning to Trade an Edge like a Casino

[Mike B 624]

Feb 6 $TWTR, $MU

Another great day trading. Didn’t take anything at the open. One day I will brave enough to take those Thor pre-market breakouts. I saw it today, but just don’t have the backbone yet. So instead I sat in the background nice and quietly waiting for my opportunity to take a trade on it. I got it but it was a difficult trade to take as I was long bias and setup was to the short side. My performance goal for day was to take each setup I saw regardless of my bias, to see how it worked out. I really didn’t think this trade on $TWTR would work, but it did. Shortly afterwards $MU setup and took that trade too.

Big day for me, trade to stocks live at the same time intentionally. It much easier in the afternoon vice the morning.

 

[Rob C 826]

You have plenty of backbone. I wouldn't have been able to hold that TWTR trade for the first 50 minutes as it looked like it was going to go higher.

[Mike B 624]

22 hours ago, Rob C said:

You have plenty of backbone. I wouldn't have been able to hold that TWTR trade for the first 50 minutes as it looked like it was going to go higher.

Only because I now refuse to exit before my stop. Too many times this exact thing has happened to me.

 

[Mike B 624]

Feb 7 - $ABBV

Had a good trade on $ABBV, but messed it up with a couple of montage errors as I was not focused on the execution. I ended up just setting a range order for the profit target and breakeven. I eventually got stopped at the B/E to the penny before it moved to the profit target. Oh well could have been much worse.

 

[Mike B 624]

Feb 3 - 7

Weekly Report

Trade Analysis

Psychology Analysis

 

Top Three Good Trends

1. The first was that I was able to take entries regardless of my bias this week. On a few trades I didn't want to take but I choose to anyways.
2. I was aware of my emotions and twice during the week I kept myself from trading during the open because I could not focus on what I was doing.
3. I am getting much better and being relaxed while in the trade. I have a setup I am 100% confident in and I am able to trade it when the setup appears regardless of my bias

Bottom Three Bad Trends

1. As the chart below illustrates, I have had some major issues with taking profit at the right areas. I did not stick to my profit taking plan at all this week and have noticed that when I can input my exits with a stop order I am much better at it than if I have to press the hotkey to exit.
2. I am still having self-sabotaging issues with the montage and hotkeys. This needs to be addressed more in depth
3. Focusing in the morning has been an issue this week and I am unsure why.

Focus for Next Week

1. Fixing the montage and hotkey errors.
2. Sticking with my profit taking plan and not worrying about whether I get stopped out after the stock coming within .01 cent of my partials
3. Morning routine, so that I am focused and ready to trade the open.

[Mike B 624]

Feb 10, $MU x 2

Well at the open I had some FOMO with AMD. A great 5 min ORBO appeared and I did not take it because I was not trading open. I was out with spouse celebrating 20 years of marriage, so I was a little tired and not in the right mindset for the open. Luckily, I was able to collect myself for the afternoon session and got a couple good setups on $MU. The first one did not work out, while the second one got me 2Rs. Funny thing is I was completely confident in the first trade and only mildly confident in the second trade. Funny how probabilities play out and you have no control over what happens, you can only control how you manage the trade.

 

[Mike B 624]

Feb 11, 2020 - $AMD

Did not trade in the morning as I did not have any setups appear for me. I came back in the afternoon and I found $MU and $AMD. $MU failed the setup so I moved onto $AMD. Took it short, got two partials and then it stopped me out to the penny at break even, before going on a hard selloff to my profit target. Overall a very good trade and my management was on point. I going to increase my risk per share after this sample set. Unsure right now what I am going to move it to.  I am going to do some analysis to determine the best price.

 

[Yardley 6]

@Mike B do you use Kyle's keys (https://youtu.be/kDgiWrNVE3Q) to submit your max stop loss per trade? 

 

[hailchaser2 185]

I’m starting to think your BE stop loss should be avgcost +/- 0.01, you seem to barely get stopped out on those pull backs.

[Mike B 624]

11 hours ago, Yardley said:

@Mike B do you use Kyle's keys (https://youtu.be/kDgiWrNVE3Q) to submit your max stop loss per trade? 

 

Yes, I use Kyle's keys to determine my stop loss.

[Mike B 624]

10 hours ago, hailchaser2 said:

I’m starting to think your BE stop loss should be avgcost +/- 0.01, you seem to barely get stopped out on those pull backs.

I know right, but it is my rule, once I take a partial I get out at the break-even. Lately it has been stopping me right to the penny, but I can also count numerous times over that year that it blows right past my B/E and keeps running. 

[Mike B 624]

Feb 12 $BBBY

I was not awake today. I think I was mentally exhausted this morning and it all started when I got my fist cup of tea as you will see. I had $BBY, $MU, and $TEVA on watch, but at the open I could not seem to stay awake or keep my focus, so I decided to go get another cup of tea, only to realize that the first cup was caffeine free. Of course. I felt it better to call it a morning and wait till the afternoon, but that was not much better. I was awake by this time but just not in sync with the markets. I did end up trading BBBY to the long side. I got a partial and then stopped at B/E. I also missed a trade on $CVS that would have worked out nicely, but I was too slow on the analysis.

 

 

[Mike B 624]

Feb 13 $AMD

I got into AMD but did not feel very comfortable, I was having a lot of issues focusing. I should have been scanning other stocks looking for a trade, but I was kept finding something to occupy my time. Lost of focus. Eventually got stopped out. No big deal, it was my setup that just didn't work. Executed it well. I will not be trading tomorrow as I have to travel to San Diego to get my DD 214. Big day. Enjoy the weekend and see everyone next week.

 

[Rob C 826]

1 hour ago, Mike B said:

I have to travel to San Diego to get my DD 214. Big day. Enjoy the weekend and see everyone next week.

 

 

Sorry, I had to google what a DD 214 was. Wow that is a big day!!!  Have a good weekend.

[Mike B 624]

Feb 8 -16

Weekly Report

 

Top Three Good Trends

1. This week I was able to trade with no fear of being wrong. I entered a few trades that I did not think were going to work out but met my criteria. I had more winners than losers.
2. I was able to keep my losers smaller than my winners throughout the week.
3. I did not have any self-sabotage errors this week.

Bottom Three Bad Trends

1. I was having some issues focusing in on trading in the moment. A few of the days I had a hard time keeping my focus on the trade without it wondering.
2. I was not able to stick to my routine after I got into a trade in the afternoon. I have to utilize my routine once I enter the first trade and input the appropriate outs, I need to start scanning the 1-minute charts again for another opportunity.
3. Focusing in too much on the tick by tick action in my afternoon trades. Once in and the levels are set, move on to the next trade.

Focus for Next Week

1. My focus this week is increasing risk per share. I am going to start out by increasing in small increments until I reach my tolerance level.
2. I am going to focus in on trading a solid morning on Tuesday, a solid day on Wednesday and Thursday. I will not be trading Friday as I am traveling to New York.
3. I want to really work on trading scanning for a second stock to trade in the afternoon after entering my first position.