I spent the last almost 2 weeks reviewing my plays, doing more studying and paper trading again. Taking this time without trading with real money helped me to easy my emotions and get perspective in what I was trying to accomplish.

Finally, decided to simplify my strategy, using the 2 patterns that have been more productive for me, but also the 2 patterns I understand better: “Dip & Rip” and “Afternoon VWAP hold over new highs”. Additionally, I decided to wind down a little my goals to sincere expectations based on my results.

Not doing OTC at this moment. So far, even when I win, I loose because of fees. To win I have to take positions to big for my small $2k account.

 

RULES:

1.       Cut loses quickly (can we sure we have heard this one enough? nope)

2.       Goals met for the day? or, Number of day trades reach? Walk away, stop trading, study more.

3.       One trade at a time (take your time to watch carefully and closely to what is happening, learn)

4.       3 trades max a day.

5.       Let the plays come to you, do not force it.

 

STRATEGY:

1.       Stock price $1 to $5.

2.       Listed Stocks: positions $100 to $200 (5% to 10% of account total)

3.       Catalyst / History / Sector MOMO (study the stock before getting in)

5.       Patterns: Dip & Rip / VWAP Hold, High of the Day

6.       Pre-market with good volume and depth for Listed (Vol > 3mil)

7.       Trading hours: 9:30am to 10:30am (all other times have been a disaster for me)

8.       3 to 5 min to determine exit point (I am very scared to hold for too long, if it does not move fast, I am out).

9.       9) Aim 5% - 10%