1. CUT LOSSES QUICKLY. Yes everyone knows this but sometimes you know and still don't do it. If you don't cut losses quickly YOU CHOOSE TO LOSE. It's a choice so make the decision to either WIN or TAKE A SMALL LOSS.
2. My goal is to try to BE GREEN EVERYDAY. I know it will make a world of difference to me mentally and my confidence if I'm green everyday which also means ZERO gains on the days that you CHOOSE NOT TO TRADE.
3. STUDY CHART PATTERNS EVERYDAY. I know this is half the battle but most of the times I lost was when I didn't look at the chart properly. I need to ask myself WHY am I going into this trade. Is the chart telling me clearly that it may go up or down? Every time I review a trade it's so clear to me which way it was going after the fact. So I need to study this hard and ask myself every time WHY, what's my reasoning for going in.
4. NEVER AVERAGING DOWN ON BUYS AND AVERAGING UP ON SHORTS. This is a huge no no that could blow up an account in two seconds.
5. NO SHORTS OVERNIGHT. This is just for me. I'm still nervous after what happened to KBIO and will only do this when I have more money in my account and can trade reflexively without much thinking or emotion.
6. CHOOSE A FEW SETUPS AND BE AN EXPERT AT IT. I still don't really know what I'm good at but I know what I'm comfortable with so far.
a) ORB - Open Range Breakouts which is buying the morning spike or shorting after the spike.
b) buying at support and shorting at resistance.
c) buying a breakout or breakdown near key price levels.
d) I have an understanding of chart patterns like ascending/descending triangles, bullish/bearish flags, head and shoulders, cup and handle etc.
e) Using indicators like RSI, MACD and moving averages. Some work better than others depending on the stock but I can use this as a secondary guide for entries and exits.
So I'm definitely going to work on recognizing these patterns more and perfect the entries/exits to make that PERFECT EXECUTION.
7. MAINTAIN POSITION SIZE of 200/300 shares per trade until I'm CONSISTENTLY PROFITABLE.
8. MAX LOSS PER DAY OF $100 until I'm CONSISTENTLY PROFITABLE which means TWO LOSING TRADES A DAY OF $50. Even if I see a good setup. If I've reached my max loss I can't trade. Which goes back to #2 and trying to be green every day.
9. STUDY STUDY STUDY.
10. WORK ON CONTROLLING EMOTIONS which is the other half of the battle. Or rather 90% of trading. I think trading is 10% SKILL and 90% DISCIPLINE.
11. Have a healthy lifestyle. DRINK LOTS OF WATER, GET ENOUGH SLEEP AND EAT WELL. HEALTHY BODY = HEALTHY BRAIN = CLEAR & DISCIPLINED THINKING!
Anyway that's what I have for now. If I think of more I will update and add. :P
I need to remind myself of this as well. Thanks for posting
@RoadToVegas You're welcome. :)
You have some great goals here. Be careful that you don't wait too long for the "Perfect" trade. From all that I've read, there are no perfect trades. Stay Positive and you will reach your goals!
haha thanks. Yes theres no perfect trade but the perfect execution which means cutting losses quickly and letting your profits run :)
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