Are you completely rule based, @deaddog? That's certainly a long term goal of mine. Ideally, I'd love to add some indicators to my workspace in order to give me more objectivity. Just have not found any I really like, yet. They're either lagging or too noisy/sensitive.
I have a check list of criteria that must be met before I take a trade. Where I am discretionary is if all the rules are met and I don't like the look of the chart I will pass on the trade. Keep in mind that I am swing trading equities.
Could you give an example of those criteria unless it's not a secret? How's swing trading equities been since the market topped out early last year? Do you short as well?
Nothing special Typical of a breakout trade. Here are a few. Market has to be in an uptrend. Stock in an uptrend Stock is at or near new high. Period of consolidation Range between swing high and swing low is decreasing Volume is decreasing Break out bar is a wide range bar. Breakout volume is above average. I'm a long only trader. So far this year I'm slightly underperforming the market. I'm sitting on a lot of cash as the market hasn't shown me that it is in an uptrend. Because of that I have been taking relatively small positions and adding if they move in my direction.
I am so glad you mentioned that it is not easy. of course you are right, but can I ask how you describe a defined plan?
I enjoyed the idea you mentioned opening 7 trades and changing the stoploss while making profit. i am eager to know what do you mean by profits take care of themselves? thanks for sharing your great experience.
Hi, there is a thread on a trading plan sample which was created by AI (https://www.elitetrader.com/et/thre...manifesto-on-day-trading-trading-plan.373978/) Take a look at the points and populate it with your own charact4eristics.
Profits take care of themselves because you do not know in advance if your trades will result in big profits, small profits, big losses, small losses. There are only 4 possible outcomes to any stock trade you place. What you need to focus is in your trade process, to make sure you are following your trading plan and risk management rules. Trust the process, like they say. If you have a trading edge (positive expectation), you will make monies after a period of time. And if your trade starts going your way, you want to protect any profits you have already earned by raising and trailing your stop losses. The time to count profits is when you have closed your trades.