- Only trade setups you recognize, that are statistically in your favor, that have high payout when correct
- P/L doesn't matter, just make sure you follow your rules. Profits flow from discipline.
- Review your trades constantly. Video reviews are the best
- Only trade stocks in play - high volume, big intraday moves, low spread
- Get used to being wrong, 30 - 40% of the time you will be wrong. Get out of trades when you're wrong, close to the price that you realize you are wrong
- Use visualization exercises to help your trading. Ie: imagine a trade hitting your exit price, and exiting immediately. Then, imagine not exiting immediately and it going against you. Recognize your emotions (ie: anger, frustration, denial) and how they can affect your mindset in future trades.
- Use a training simulator to go over trades, u can learn up to 10x faster.
- Trading is not investing, you have no clue where things will end up tomorrow, just over the next couple minutes.
- Returns of 100% - 500% are possible.
- Learn how to read the tape (level II), buying / selling much more obvious
- Open, mid-day, and Close have different strategies to profit from.
- Open - use the tape
- midday low volume,
- Close go with the trend
- Set your max loss to 1/2 your average trading gain, try to be profitable 7/10 days
- Make if-then statement for all your trading setups
- If the 30 bid is tested, with significant volume on the bid, and holds, then...get long
- if the 30 holds, who is the buyer?
- if the 30 holds and slows, then sell if the buyer is not near or thick offer near
- if 30 holds and the bids step up, then consider another lot
- if 30 holds and a ton of volume is done on the bid, then do not sell until a reason to sell
- ...+ 30 more things
Monday, July 9, 2012
One Good Trade - Mike Bellafonte
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