PocketPAT

-34 (ALLY) ::: I've abandoned the "third candle confirmation" idea, as well as the 10-15 minute wait period at market open; opting instead to trust and WAIT for KEY LEVEL entries on 1/4 size, as securing that early entry will (as I've seemed to have forgotten) make avoiding shake-outs MUCH easier. I've also extended the Spread Box from 15 cents to 25. This is, again, to account for high volatility at market open. It'll be best to lean on the side of caution before sizing in on such high movement after the bell. I've decided to ONLY focus on tickers between $10 and $20, as these seem to have much cleaner overall price-action than cheaper stocks; and I've also refined my order flow technique. I'll leave ETrade Pro's quantity at 1/4, turn off "Preview Order", turn off "Show Submit Button" and click the order button once for initial 1/4 entry, once for the second 1/4 entry and TWICE (double-tap) for the 2X size in. This way, I don't have to fumble with changing the quantity and can focus solely on the price-action. Exiting trades will be just as easy in the opposite direction (1-Click in pieces). It's the closest thing to a Hot Key scenario (I don't want to use Hot Keys just yet). The speed and liquidity of these stocks make "Preview Order" boxes unnecessary. I'll continue to keep MARKET ORDERS, as using them in combination with the 1-Click orders make trading MUUUUCH more seamless. I'm also considering using "Last In, First Out". I can't find anyone on YouTube who's discusses the potential for smaller losses and better averages. Wouldn't it make sense that, if I get shaken out on a second size-in entry, my small loss on those most recently added shares will be worth keeping the original shares for a better average? This way, if that shakeout was wrong and the stock keeps going in my direction, I can easily reenter and still maintain the great average of the original shares (for bigger gains). THIS MAKES SO MUCH SENSE lol. Am I the only one??? I'm going to test it out in a while, but for now, I'll stick to First In, First Out. Baby steps, baby steps. Today has felt like a sideways day from about 10:30AM and I've made the decision to not play games on flaccid moves. I could scalp each way, but I'd rather save my sanity and move on til tomorrow. If stocks end up running or cracking in the second half of the day, after sideways action, that's perfectly fine. No need to (what's the saying?) squeeze water from a stone? Tomorrow is another day =) #ProgressProgressProgress

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PocketPAT

Over the past week, I've switched from using $100 per trade to $1k; which will be my max equity until reaching $20k. At that point, I'll use $3k and switch to $5k after reaching $27k in equity. Let's see... I've eliminated the Support Bounce, but have fallen in LOVE with the Gap & Crap. Very easy, very predictable, high odds setup for sure. I've toyed around with the PMGD Short, removing it only to bring it back. Tweaked it and figured out that perhaps I'll stick to tickers that ONLY gap down 1-3% premarket; with much more room to fall. The huge gappers sometimes have plenty of continuation, but it's best to have it close to resistance for an easy wall to risk off of. BUT!!! The greatest thing discovered over the past week has been my reintroduction of the intra-day swing play. I've previously toyed with the thought of simply playing price-action back and forth; potentially all day. The problem was that I'd only had a small number of day trades and therefore was unable to take advantage of this HUGELY profitable setup. That was back 6-8 months ago; but now, with my recent discovery of both slow movers and Heiken Ashi candles, the intra-day swings have been VERY solid. I've only been paper-trading them so far --- BUT! It's ultra-realistic since the tickers are moving at slow (real-time) speeds, I'm using realistic position sizes and overall because I'm taking it seriously (as previously done with paper-trading last year). If anything, WeBull's laggy paper executions make it HARDER to paper-trade, as ETrade's real orders will be instantaneous and these tickers trade at least 20-100x my position size in each candle. My new schedule is to scan my watchlist of slow-moving and clean charts during premarket, choosing two Gap & Craps or 1-3% PMGDs to short simultaneously at market open; also dip-buying the reversal bounce on Gap & Craps to resistance; then switching to ONLY intra-day swings after 10:30AM and trading the FULL day until 4PM. Using 5-minute candles, these swings are literally easy money, as I simply correlate Time & Sales with the change in direction to pinpoint the ideal entry (which is typically after the first or second Doji candle has completed). If you look at how these charts move, they almost never go back and forth in direction, so it's VERY easy to simply secure the entry and ride the move. After the move reverses direction, you can simply exit your position, flip your bias and trade the opposite direction as well. You can literally do this back and forth for hours, on MULTIPLE tickers at a time (I find two to be best) for endless profits in both directions. The key has been 1) slow-movers (typically small-to-mid cap stocks) but with 2) volatile price-action (which is why building a list of go-to stocks is key), 3) HEIKEN ASHI CANDLES (the gift from the gods!!!) and 4) the ability to go both long and short (which should be easily available with these huge stocks). I've been doing less trading this week and more observing, as I'll be suspending my subscription to StocksToTrade on Saturday morning (only to resubscribe every January to March, only for building the watchlist with new tickers each year) and want to spend as much time as possible both confirming the strategy and building both my primary setup (Gap & Crap and 1-3% PMGD) and 5-minute Swing watchlists with the time I have left. I've been growing them both very quickly since Monday and am currently at 91 and 48 tickers on each respectively. The "5-minute" in the Swing name is only a mental reminder to use 5-minute candles. Many of these intra-day swings can last 20-30 minutes; but in trading them for only two hours, I easily collected $300 on slow-moving price action both ways. Had I been able to trade from market open, I could have easily (potentially) made $800 or even $1200 today and I've finally built a strategy that can be used day in and day out; in any market, at any time.

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PocketPAT

Over the past week, I've been really pulling back on trading to build, refine and confirm my trading strategy; with quite a few changes. I've dumped the 2nd/3rd Red Day Premarket Gap-Down and expanded the Reversal from Support/Resistance to now the Gap & Crap and Support Bounce. The Gap & Crap is (for me) a premarket gap-up that is resting at key resistance just before market open. Once the bell rings, it typically craps out down to key support. I'll short at the open and cover down at support. The Support Bounce is the opposite: premarket gap-down to key support, for a bounce after the opening bell. Buy the dip, sell the rip and move on. I'll also play the reversals for each setup, effectively turning two setups into four. After PDT, I'll still plan to trade two at-a-time, since these slow-movers are so easy to juggle. Over the past week, I've watched time and time again as these two setups provide numerous opportunities every single day. Perhaps that's due to the market consolidating, but my focus is still to master setups that I'll be able to continue using when the market stabilizes. I could keep the PMGD Short for the occasional perfect play, but that seems to have only been a great setup while the market was tanking. When everything stabilizes and we get a consistent pattern of consecutive green days to short after the First Red Day, perhaps I'll reintroduce the PMGD Short as a third solid setup. ----- As a matter of fact, I'll make that official now. Its truly a repeatable and highly profitable setup and so I'll bring it back when the time is right... I've also decided to completely eliminate sizing into plays. Instead, I've expanded on widening my stop-out on small size, to avoid not only being stopped out too early, but being stopped out altogether; as an ultra-wide stop is often far from the point for where a pattern would be broken. This gives mental clarity and focus for the price-action, since I'll never have to worry about being stopped out. I can simply cut the position when the pattern is broken. Using small but respectable size, with the ultra-wide stop, I'll replace sizing in on ideal price-action with DOUBLING my position ONLY IF the stock rips/blows or cracks through my sell/cover target. If it goes beyond my ideal exit point, it's proven itself as more than a single and would then be worthy of higher equity. I can now essentially focus on taking singles with respectable size, while still having the ultra-wide stop and maximum focus for every trade; with two highly effective setups to trade with. This also means that I can reintroduce TDAmeritrade for nine potential trades per week (ETrade, TDA, WeBull), which I very well may use with all the Gap & Craps and Support Bounces taking place nearly every day. I've also removed my Unrealized $ Profit/Loss (Tim Grittani-esque), replacing it with the Unrealized % P/L instead. I'd rather not remove it altogether, as I feel comfortable seeing the position moving (just to know that it's active on the platform). This has already proven to provide much more calmness during trading..... That's about it =) --- oh.... I've also reduced my max equity to just $100 per trade (yes, $100 max) until I confirm two weeks of consistent profits between these two setups. I was using $1000, but for the purposes of testing the strategy; there's no need to lose more equity than needed. My max loss going forward will be 10% (which I'll rarely hit with the ultra-wide stop beyond pattern breakage), so currently I am risking $10 per trade for which I would have to be TERRIBLY wrong to achieve. My typical stop by pattern breakage will be 4-6%, well before my max loss. I'll use the 10% rule forever, as I am COMPLETELY in love with the ultra-wide stop-out.

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PocketPAT

Decided to take yesterday and today off. I've been stumbling upon many pieces but still needed to put the entire strategy together. I resubscribed to Tim Alerts (over PSSilver), but just for a month; to see what Tim and the chat were doing. I needed ideas, because I didn't have any real direction. With no premarket gap-downs, I started forcing trades. After reading a few recent watchlists from Tim and perusing the chat, I reconsidered speculative longs on sector hype and premarket breakouts on news; but the best breakthrough came after remembering how powerful StocksToTrade's scanner is at finding ideal setups. I've tried using WeBull for this over the past week and it's not even close. I had my mind made up to cancel StocksToTrade after this last billing cycle, but I'll keep it without their Level 2. There ARE many hype plays right now and the potential is crazy, but even after getting a glimpse of the profits everyone seems to be making, I'm even more excited to stick to my own setups. My problem this week was not having ideal setups, based on my shorting strategy; but that was because I was looking in the wrong places. My watchlist is only 50 tickers deep and WeBull's scanner wasn't cutting it. Firing up StocksToTrade's screener and setting up a scan for both First Red Days and Premarket Gap-Downs, I see now that 1) there were plenty of plays this week (over 45 last night) and 2) StocksToTrade is what I need to be using to find them. I've expanded my setups to 2nd/3rd Red Day Shorts, Premarket Gap-Down Shorts and Flip & Dip Longs. A great Flip & Dip is PBF this morning. After shorting the dump to clear support, I'll flip my bias and dip buy it for a single to immediate resistance above. I'll save this setup for after PDT though, since I only have so many day trades and would rather save them for high probability shorts (over speculative longs). I've been back and forth moving funds around this week, as my strategy has been all over the place; but this is one I can stick to. I'm back to focusing on ETrade and WeBull. #NoFOMO #ShortsOnly

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PocketPAT

Since discovering Heiken Ashi candles, I've decided to try out a new equity split. I'll ONLY trade Support Dip Buys with $3,000 (one entry, no sizing in) for three individual trades at both ETrade and TDAmeritrade. This effectively gives me SIX $3,000 trades per week. Since WeBull allows unlimited sizing into each day trade, I'll size-in over there from $3,000 to $9,000 for three Premarket Gap-Down Shorts each week. Even though ETrade has the most easy-to-borrow shorts of the three, I'll just take what I can find at WeBull, since this equity split gives me the best weekly profit potential. Heiken Ashi candles make these two setups so much clearer than ever before and there aren't perfect short setups every day; so I'll stick to small singles on Dip Buys at support and wait for the perfect short setups to size into full positions. #StrategyandExecution

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