We all have our resolutions and I never really make them. However, I will make one...

I simply want to make fewer trades.

I wasn't watching $LEI yesterday but did look at the chart here and there. It was a great move and it will happen again so I'm not bothered in the least about missing anything there. I was focused (studying live price action entries) purely on $WTW because I am trying to pinpoint my entries based on price action and volume. You can see that I was in and out on $WTW 7 times based on patterns that I look for. 7 times is 7 times too much. I can recognize weakness and per these trades I did get out before a price pullback every time. I made one stupid buy at the top but quickly got out with only a $10 loss.

The overall trend in $WTW was pretty much down all day. My thinking was that this was still 'in the news' and may get the run back up. I wasn't bottom picking because I was following my rules to look for some kind of strength and confirmation before an entry, but damn that was a lot of work for these 7 trades even though it was a productive day.

What's good is that the stock was down on the day and these were all buys. What's bad is that it was a 7 trades and over $100 in commissions. I'm not too beat up on the commission costs and you shouldn't be either pending you are profitable. Everyone has to make their money in the market no matter what their job is.

And, YOU DON'T TRIP OVER PENNIES ON YO WAY TO MAKING MILLIONS.

I was with IB and their commissions and shorts available are great but sometimes, most of the time, I only have one screen to trade on and having IB and TOS open on one screen with all those windows was too much. So, due to the better charting and settings in TOS that's where I am for now. When I get more 'professional' in my trading I will get back over to IB for trading and TOS for charting. For now, this will force me to be on the long side more vs. shorts and the fewer shares to short with TOS but when the time comes and I get back to IB my price action set-ups for longs is simply the reverse pattern for shorts so no worries there.

Either way, back to limiting trades....

I know a lot of us get nervous or 'should have exited there' when we see our positions go from positive to negative, we get out with a break even or small loss only to see price action return in our direction.

What's worse is when you have an actual stop loss order in and price comes down right to your stop, gets hit, and then returns in what could have been a winning trade.

Why does this always seem to happen to you? Because the Market Makers can see your stops and will 'run them' if the can. Yes, really. You can combat that by monitoring your position like a hawk, like you should anyway, and either put that stop loss in a few cents before where your mental exit is or simply limit order out. If your're 'in good' in a position and have to be gone for a while then a hard stop loss in is a good idea, or if your profit target is hit already and price is still going. Then yeah, put that order in and just let the market do what it wants to.

My main issue is seeing money on the table and the temptaion to take it too soon. So, I'll exit with that profit and look to get in again per the trend. Sometimes I am simply 'zoomed in' too much on the chart and not looking at the bigger picture. Not a longer time frame but the actual chart itself. Always take into account the entire chart, not just the last few hours.

My plan to limit the number of trades is simple...

I'll go in with my original entry size and take off half at my profit target and let the other half work but not let that other half EVER negate those first half profits. In other words, if I buy 2000 shares take off 1000 at the profit target and let the other 1000 work with the trend or exit that half at b/e.

Please note that I am not a scalper and I don't want to be a scalper or thought of as one. We see a lot of posts saying $500 in three minutes and the like. Is that scalping? Or making three cents in 3 hours scalping? I know I don't want my profits based on 'micro moves' and most of the traders here don't either. It comes down to the money on the table and if you want to take NOW or risk letting go negative.

I'm hopeing that my plan will limit my number of trades. This along with following fewer tickers throughout my limited trading time will work.

 

Find your tickers and FOLLOW YOUR PLAN.

Note every trade on the chart for the day and STUDY why you entered there, profits and losses.

This take a little more that "5 minutes a day to make millions". THIS IS A JOB and it must be treated as such.

Good luck to everyone in the new year and be safe.

TRADE SMART!

The Penny Stock Quest