Part 1 Notes:

What Makes a Successful Trader?

 

·         Being prepared Discipline, no gambling or trading just to trade 

·         Trade only when ODDS are in my favor/ solid risk reward be patience and wait for best plays

·         Treat trading like a business, not a hobby, Trade from ANYWHERE

·         Accept that I am human, I will make mistakes and be wrong

·         Take advantage of others' educational inefficiency, ignorance. 

·         Small profits add up over time.... one trade at a time 

·         No one trade will make me rich! if I get too big and cocky I lose it all! 

·         Trade scared and cut losses fast, when in doubt get out!

·         Trading scared makes me not scared to trade!

·         Trade Volatile, low priced stocks, long and short for meat of the move.

·         React to catalysts/ patterns that have proved to work

·         Adapt to current market and adjust position size  

·         Before every potential trade, I review my indicators to make sure it’s a worthwhile setup3

·       I will never enter a trade based solely on my "gut" or any "tip"

Indicators protect from losses!

·         Review the TRADER CHECKLIST before every trade, over time I will already know in my head

·         Trader Checklist most "scientific" and mathematically approach  

Part 2 Notes:

The Sykes Sliding Scale (SSS)

·         P: Pattern/Price (1-20)

·         R: Risk/Reward Ratio (1-20)

·         E: Ease of Entry/Exit (1-10)

·         P: Past Performance/History of Spiking Big (1-10)

·         A: At What Time of Day Is It/ My Personal Schedule (1-20)

·         R: Reason Catalyst (1-10)

·       E: Market Environment (1-10) 

 

How To Prepare:

 

·         Use 7 key indicators (SSS) At

·         At worst SSS will help me identify and execute the best stock trades

·         More indicators = higher success 

·         If indicators conflict, best to avoid setup

·       REMEMBER 90% of traders lose money due to lack of strategy/Preparation/Mindset/Patience

 

(P)- Price/ Pattern

 

·         Time of Day, Risk Reward are most important (1-20) 

·         Work on using SSS on stock screener 

·         The better the Pattern/Price, the more interested I become
Clear breakouts over recent highs, 1 week, intraday, 1 month, 1 year... the more time frames =Better Odds

·         Choppy Stocks that Zig Zag all day are rated low because theycan't make up their mind,

·         Sometimes a stock will barely breakout or breakdown, not good for me, Convincing Patterns! 

·          I want the easiest and obvious breakdowns 

·         Clearer/ more obvious the pattern more likely other traders will be into it.

·          If a stock is breaking out to new highs on day/week/month/year then it will be on more traders' radars

·         Not the only indicator but the MOST important.

·         Patterns haven't changed AT ALL in the past 2 decades...HUMAN NATURE NEVER CHANGES

·         I don't buy random patterns or at random prices, every trade I do should be based off: 

o   Breakout, dip, near support or resistance levels 

o   Buying or shorting mid-range is Dangerous and has lower odds

o   Some breakouts don't continue, CUT LOSSES

o   Some breakdowns don't continue, CUT LOSSES

o   Learn patterns and study History