ahhh i remember that last post, simply put, i wasn't so certain that i should give up on the morning panic's quite yet, so i took a few day's to see what a few other trader's were saying about the concept of abandoning ship on a pattern that you're close on. well kellogg mentioned that he would move on to learn another play, and i almost did, by the way he has some great video lesson's here on profit.ly i would recommend checking them out, but also i was going through some video's on youtube, and i found a interview of kyle william's with tim bohen, and it was a ray of sunshine. kyle talked about how he actually traded these thing's and bohen asked him how he set his risk? just the low of day crack? and kyle agreed! so i discovered that i needed to mess around with how i'm setting risk and planning before i'm entering a trade.(before i would mannually analyse all the different support and resistance level's the chart's revealed so i could determine where all the good buy and sell points were). so i decided that this month's goal would be to refine a intraday, daily, monthly, yearly review process, including a concrete process on how stock's move from scanner's and into my watchlist's, and developing a separate, specific process to explain what i'm doing while i'm watching a stock panic, which i later dubbed the button process cause it give's me the permission to click the button.
1. chart: do i like the daily and 1 minute chart pattern, does it match the price action i've seen from good panic's and bounces in the past?
2. set the plan, how far down has it panic'd? set risk reward, set a buy price? (this is done at some point while the stock is panicing.) (lately i've been experimenting with different way's of doing this, i've tried manually checking to see if the risk reward is good, but it take's too long, so today i've tried eyeballing it, and it seemed to work ok, and i was freed up to look closer at the different support ressistance line's. )
3. how do the volume candle's look? i have been using this to confirm my theory, if it's not perfect i will still buy.
4. get my order ready on schwab so all i have to do is click, or slightly modify the order if i have to.
5. level two, is the bid stacked?
6. emotion, is my mood in a state where i can respond to what the chart's gonna reveal to me?
7. click the button.
i can already see the promise of doing it this way, and i've been practicing going through it on my screenshotted charts. it can be done pretty quickly.
the review process for going from scanner to watch list isn't important nor novel so i didn't include it.