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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PocketPAT

Raising my price-target to $50 after seeing Jack profit $20k this past week. One of his trades was on a stock near $30. My primary goal now is to add as many good charts to my watchlist as possible. The more options I have each day, the more potential plays I can take advantage of. With WeBull having much less shorts than ETrade, especially easy-to-borrow, I need quick access to as many alternatives as I can find. Tickers I can't short at WeBull may have related stocks that have shares to short in a pinch. I've stumbled upon many tickers like CMS during my scans early this morning. Higher priced tickers with CLEANER charts and easy-to-borrow shares available, that I otherwise wouldn't even have been watching. I could have managed $675 in profits had I shorted on the initial crack and held all day til the close. LEAVE NO STONE UNTURNED!!!! Now more than ever, people will challenge your focus on stocks; but stay the path and never deviate from the three rules: wide stop, never chase, take profits. Only the best setups. #KillMeFirst

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PocketPAT

Just discovered that I can view my watchlist in mini-charts on WeBull, instead of lists that I'd have to process through numbers, having to click-through for chart-by-chart..... *sigh* WeBull is sooo awesome in EVERY way--- except for when it matters! I'm bouncing ideas around to see if I can avoid doing the three-broker split...... lol I'm gonna really try to make it make sense. Smh. ----- 9:06AM: I've decided to just suck it up and stick with ETrade and WeBull (still sizing in 1/3 on each from $2,500 to $7,500). It's just gonna have to be part of the process. Keeping one watchlist, where I'll just look for the best plays and see if they're easy to borrow on WeBull. If I do it early enough (like at 9am now, as I'm wasting time), I can still plan ahead. It only takes a minute to determine the shortability of a ticker once I've decided that it's a contender. Perhaps I was just upset that I was so close, but yet, there was even more to learn; as there always will be.

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