My Daytrading Plan

Discussion in 'Trading' started by Quanto, Mar 24, 2024.

  1. birdman

    birdman

    You are on the right path. I think you have mostly answered your own question in that you might benefit from taking a closer look at what instruments you trade. Lower priced small caps will have more volatility and may allow you more success. That and maybe you are trying to capture too much % roi per position, you can lower your target % per entry and try to sell before the Hull MA indicates price is reversing. Hope it helps.
     
    #61     Mar 31, 2024
    tomi01 likes this.
  2. tomi01

    tomi01

    Wow, thank you very much for that. It is like magic to hear I'm on the right path. I don't hold too long for the top or bottom, if anything I close too soon to bank what P I've gotten so far, that is how low my confidence still is, but I've found that if I watch the 20 tick chart I can hold for much longer with confidence and I flatten as soon as I see weakness coming in. This has helped a lot.

    I'm so glad to hear that you approve of trying to use the HMA, (with discretion I'm still trying to figure out). I still don't trust it enough and I find myself scalping in and out of it, but when I have left the trade open until close to the end signals it gives and I see weakness overall in that trend, it is so exciting to get much more P than just a scalp! Yeah.. still early days. Thanks!
     
    #62     Mar 31, 2024
    birdman likes this.
  3. When you factor in the protective put expiring worthless then how does that affect your pnl? If you bought a Jun21 19 put @ $4 now, the Apr12 19 put is 1.50 so this is a depreciating asset that will drain away pnl if any. I always found that the protective put does more harm than good.

    If you caught the CLSK swing low to high from the beginning of March to the end of March, got in @17 out @22, without getting stopped out a dozen times, then your pnl is $500 but you spent $400 on the put. Sure people will say that it protects you from losses, but I see it as preventing profits which also protect you from losses.
     
    Last edited: Apr 1, 2024
    #63     Apr 1, 2024
  4. tomi01

    tomi01

    May I ask you for some insight about how you work with stops?
     
    #64     Apr 3, 2024
  5. birdman

    birdman

    Jot down a predetermined maximum loss by looking at the most recent area of support. Many times the volatile low priced stocks i trade will blow right through my max loss exit, but having a predetermined written stop is the best safeguard i can do. Buying after a mini pullback when price starts back up can be helpful.
     
    #65     Apr 3, 2024
  6. The reason that happens is because support and resistance lines are bogus. They don't work. Same with moving averages. If they worked then everybody would make money in stocks. 99% of traders use support and resistance and 99% of traders lose money.
     
    #66     Apr 3, 2024
    birdman likes this.
  7. tomi01

    tomi01

    Thanks that is good advice. Stops are very tricky for me. That will help me keep on the right side. Thanks again. Have a good day!
     
    #67     Apr 3, 2024
  8. birdman

    birdman

    Nothing works all of the time. What works better for you?
     
    #68     Apr 3, 2024
    KDASFTG likes this.
  9. It's not what works all the time. It's just that support and resistance doesn't work at all. That's not what drives price action. When price blows through resistance in a WXY correction and stops people out; they don't understand why...they just complain how they keep getting stopped out before price resumes upward.
     
    Last edited: Apr 3, 2024
    #69     Apr 3, 2024
  10. birdman

    birdman

    I agree there in no value in complaining. Success stems from embracing continuous self-accountability. This principle is the cornerstone of achieving victory in any endeavor. Simply accepting and absorbing this belief so that it becomes part of your character.

    You are welcome to share what intraday strategy you feel is better than placing a stop below support. I certainly have a lot to learn and I still enjoy learning.
     
    #70     Apr 3, 2024
    ironchef and tomi01 like this.