PocketPAT

It's interesting, because when you first get into day trading, you're told that penny stocks are where the money is. You're told that you can't make money in Large Caps, because they "barely move" and "aww man the algorithmic bots are too tricky". I say, don't discriminate on any sector of the market. For example, if only my account were at $50k, I coulda woulda damn well shoulda made $3250 on DFS today. With my $27k account, I'll have to settle for $1725. Where there is a will, there is a way. I'm so excited for the future. Currently, my top three favorite stocks from the master watchlist are DFS, CMCSA and FANG. I'll be continuously refining my "Top Three Favorites" and the entire watchlist every two weeks, as it takes a little time for these clean charts to either prove themselves or breakdown into obscurity. Never, ever, ever give up and stay focused!!! =)

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PocketPAT

As usual, I've made a few changes since my last update. Ironically enough, upon reading my last update, it seems that I may have gone in circles a bit lol (albeit not surprising). Although, I maintain the thought that I've never wasted any time. Even while switching back and forth between swing trading and day trading; using dual SMAs or single, I've only ever progressed each individual strategy every time I've touched it. Nonetheless, I've reintroduced VWAP as a replacement for one of my dual SMAs these past couple of weeks. VWAP has always been a solid indicator for price-action at market open, and has repeatedly provided all that I'd ever wanted on momentum stocks: indication after market open of the day's long-term momentum. With an overall chart hypothesis, once the direction was confirmed by VWAP (typically around 9:45AM/10AM), I've been simply riding the wave until momentum has shifted. This is obviously best practiced on the stocks that I love, slow-moving Mid-to-Large Cap stocks. VWAP also protects me from the choppier segments of the market session, where people seem to be fighting over whether or not the price-action breaks above or below it. Back-testing VWAP as an SMA replacement on multiple stocks, this will also serve me when I eventually trade higher priced stocks as well. There are some nice benefits to using the second SMA over VWAP, but the cons outweigh the pros; so this is the direction til further notice. I'm reminded that I'll likely always be tweaking my strategies, as I'd not realized that these tweaks may be due to market environment changes (not simply because the strategies themselves did not work). Still, my goal will continuously be to narrow my strategies to just a few universal methods of trading. I've also decided to maintain trading from 9:45AM. The biggest struggle with this is FOMO, but back-testing has proven it most profitable to wait the first 15 minutes on slow-movers. I'll miss out on a few nice runs, but as stated before: these quick moves are typically too volatile anyhow. 9:45AM seems like the sweet spot for a confirmed direction and controlled momentum. I've made a few changes to my scanning filters. At first, I'd created a few variations for future equity milestones; but I've seemed to have found a single set that will satisfy all of my needs going forward. I'll only be scanning and trading stocks with the following filters: ADR 0.75-2.50, AVG Vol 3M+, MKT CAP 1B+, Last $20-100. While this currently provides a nice 146 results, I'll be maintaining a watchlist with these filters even while some of the solid charts wont be used any time soon. This will serve me as I grow my account from $30k to $50k, to $100k, to $200k, to $500k and beyond. I'll always sort my watchlist by the highest ADR, to achieve profit goals the easiest. I've also decided that after $500k, I'll look to switch to either 1/2 swing trades + 1/2 algorithmic day trading, or (if algos are much better than swings) I'll go 100% algorithmic. Lastly, I've been using a detached TOS "Dashboard" for Bid/Ask, set to "always on top" of ETrade Pro. It's been working out beautifully as a cute little box that fits just below my active position "Last". Things are still moving along =)

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PocketPAT

+1350 (MGM) ::: A few tweaks and realizations today. First, it's come to my attention that ETrade Pro's Bid/Ask is D-E-L-A-Y-E-D..... This was never a problem before, as I would simply use ThinkorSwim's integrated B/A on the chart. However, with WeBull FINALLY upgrading their software to access 2-minute charts, I've let go of ThinkorSwim (due to it's memory hogging) in favor of WeBull's elegant and streamlined platform. Since WeBull STILL doesn't have B/A on the chart, I'd decided that I could simply use it on ETrade Pro to make quick entry/exit decisions. This morning, however, I'd noticed that the B/A on ETrade Pro would periodically be a bit far from the last price. "Not a problem" I thought, as these slow-moving large-cap stocks can sometimes jump around a bit. Then, I'd notice it more before wondering "How is that even a thing? How is the price so far from what people are bidding and asking for? That's ridiculous." Upon checking TOS, it became clear that I could no longer rely on ETrade's Bid/Ask for real-time quotes. The interesting thing is that ETrade's "Last" price is completely accurate and on-time....???? Why then is the Bi--- whatever... I removed Bid/Ask from my Positions columns and the "Last" has served me well throughout the day. Secondly, things are moving right along for my strategy! I've altered the 2xSMA (dual sma) back to different colors; as I've realized that when one SMA is pointing downward, while the other is pointing upward (both heading towards a cross), this almost ALWAAYYS indicates either a long or short play. It only serves as an additional confirmation for my trade biases, so that I can breathe easy knowing that I'm more than likely on the right side. I'd thought of sizing a first half on the SMA break and a second half on the actual 2xSMA "X" cross, but I don't like how it compromises my average and it's often unnecessary with my tight stop (being a reversal crack of the 2xSMA or 10-cents, whichever comes first) with the fact that these slow-movers tend to follow through on my SMA setup after the crack has been initiated on the 2-minute chart. I'll keep my daily goal at $500, but as expected, the profit potential has consistently been $1000+ on even the not-so-busy days. Day at a time, day at a time. #Focus

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PocketPAT

After a few weeks of bouncing back and forth between day trading and swing trading (albeit productively refining and progressing each strategy --- no time wasted), I've decided that it's best to focus primarily on day trading and to defer to swing trading only when the market is slow. After securing solid strategies for each, it became clear that while day trading can provide 2-3x the profits that swing trading can, swing trading can provide an easier and more sustainable long-term casual approach to trading the market. My day trading strategy is solid, but it ultimately fell flat in the number of clean and clear (predictable) charts that I felt comfortable using. On the other hand, while swing trading provided dozens of easily trade-able charts, I'm not quite sure that the profit potential meets my minimum monthly goals. It seems that day trading is the better option, as my intra-day strategy is damn near perfect; but I needed a way to consistently find volatile yet clean charts to trade on. I've been noticing that earnings releases have been boosting the price-action of stocks for a few weeks of volatility. Though, it seems apparent that predicting the direction of earnings plays is a lost cause; as better than expected earnings can easily tank a stock and terrible earnings can cause a stock to run exponentially. For this reason, I'd decided that I didn't care whether the earnings were good or bad (or whether the stock went up or down) but only that it HAD an earnings release; because the release of earnings almost always has been inspiring some sort of profitable volatility. I'll also loosen my scan filters to find biggest percent gainers, in the case that there are no earnings plays for the day. In the case that there are consistently neither, I'll then defer to swing trading for a week or so; to at least put my equity to work until market volatility returned. So, my primary focus will now be on earnings releases, followed by biggest percent gainers and third on swing trading only when necessary. On another note, I remember that it wasn't too long ago that I was sh*tting on ThinkorSwim. As I've mentioned previously, this was before I'd realized the level of customization that could be used to make the software "your own". I generally hate everything when I first come across it, but I must admit that I've grown to love and trust ThinkorSwim over the past few months. I know that it's apparently had problems lately at market open, but I've also decided recently that I will no longer make any trades until 10AM. I'd first discovered this idea from Tim Bohen's mentioning of it on the SteadyTrade podcast and over time it's begun to make more sense. Even for large caps, the best idea seems to be giving the stock 15-30 minutes to decide which direction it will ultimately choose. While this may at times lead to a loss in potential profits, a stock running way too much within 15-30 minutes likely has either a spread that's too wide to trust or volatility too wild to predict. Lastly, through all of my tinkering the past few weeks, I've managed to survive being over PDT with ease. I've used very small size due to my back and forth experimental changes, but I'm pretty comfortable at this point in using my full equity. My current goal is $2500 per week, but last week was near $5700 in profit potential and I'm expecting to break my weekly goal regularly. Still taking it slowly and focusing on longevity.

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PocketPAT

The only thing that sucks so far about TradingView is the fact that I can't scan for tickers with Average Daily Range UNDER 14 days. I'd like to be able to find potential plays that have run huge over the past 3-5 days. I could be looking to play the reversal or continuation on these; but in all actuality, if they run that huge in such a small amount of time, they're probably going to be Hard-To-Borrow (making them not tradeable for me, personally). Regardless, I plan to resubscribe to StocksToTrade after getting my account to $50k, even if only for one month to see what plays it can provide. Though, I'd still keep TradingView for it's extended charting and backup scanner. Till then, TradingView should continue to be awesome for my current strategy. On to next week =)

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PocketPAT

Every time I start playing music, it takes me forever to stop dancing and get work done. I'm looking into switching to Swing Trading. *sigh* Day trading is cool, but it's really tedious and Swing Trading always seems soooooo appealing. Maybe it's the 4-Hour Heikin Ashi chart flows that call me in my dreams. *sigh* Plus, *sigh* if I can adapt to Swing Trading, I can stop obsessing about stocks and get back to regular life. Hmmm..... We'll see. I was all in on Swing Trading at the start of the year, but the crash scared me away. I thought it was "unsafe", but really, it was the BEST time to be swinging (if you knew what you were doing). One big influence in considering swings is that long-term, I really would like the casual approach to trading. I'd like to live in other parts of the world, like Honolulu, Hawaii; and 3:30AM market open wouldn't be sustainable.... The fact that I've slowly gone from low float/low market cap madness to slow-moving momentum trades, and then to mid/large-caps, and then to tickers up to $100 really tells me that I'm low-key inching my way closer to Swings either way!!! It's really a matter of time =) (convincing myself) ----- 08/15/20 3:29AM: I've decided to keep doing what I'm doing. I'll start building and refining the supplemental swing strategy with $1k after I get to my account to $50k total. I'll then 10x the swing equity to $10k once my account reaches to $100k and 10x it once more after reaching $200k; splitting the total equity by $100k for day trading and $100k for swing trading. I'll go an entire year, testing to see which strategy is most profitable and will allocate all funds to that strategy thereafter. For now, I'll stick with 50+50 shares on all trades (market open and reversals) and will stick to trading two positions at all times. I'll return to 2-minute charts, to clean up the price-action just a tad and will size-in 1.00 beyond my initial entry (the 2xSMA crack/cross). Lately, I've seemed to gain traction on trading the Highest Average Daily Range and 1PM Reversals on tickers up to $125. Still, sizing into 100 shares total gives me a clear cut 1.00 stop-out of $50 on half-size and $100 on full-size. I'll continue seeking $600-800 in profits each day. I've also incorporated MACD Histograms into the extended charts and decreased their intervals from 10-minutes to 5-minutes. With these slow-movers that typically have huge swings throughout the day, the 2xSMA and MACD combo is showing momentum swings much clearer than before. I've eliminated WeBull altogether and will revert to choosing the two Highest Average Daily Range tickers for market open, followed by goldilocking 1PM Long/Short Reversals later on. I'm using a dual 2-minute ThinkorSwim window on the left and a dual 5-Minute TradingView window on the right. I've been making 10x the profits lately, but I'll still be taking it a day at a time.

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PocketPAT

+1131 (YY, DDOG, CDAY) ::: VERY frustrating day today; but as always, all frustrations come with valuable lessons and welcomed refinements to my strategy. I've adjusted the Average Daily Range scan filter to $3.00-5.00, to avoid the crazy volatile market open tickers that move too uncomfortably to trade. I've tightened the dual intra-day SMAs to 15 and 20 on the 1-Minute chart, as I've noticed that they were a bit too far from the price-action. I'd much rather be a tad bit closer, securing earlier entries and exits; still without too many potential shakeouts. Focusing on tickers which are just a bit less volatile, I should be fine with my 1.00 stop-out. I'm now sizing-in on ONE ticker at market open (125+125 shares), as I'm finding that it's FAR better to safely focus on one solid chart than trying to keep up with two. I'd rather use both screens for one ticker and risk the sized-in average, over constantly shifting my attention to manage two positions. I've also decided to reintroduce WeBull as a 6-Grid at market open; since WeBull uses next to nothing in CPU memory and should prove VERY useful for watching six potential plays. I'll wait and see which one plays out best by 9:45AM. I've noticed that regardless of premarket movement, some tickers on my watchlist can run HUGE without any reason or catalyst at all. I need to determine how I can take advantage of these unforeseen opportunities and I believe that the WeBull 6-Grid will achieve just that. Still, I'll trade TWO Reversals (125 shares each); but I'll use 5-MINUTE charts on a Dual TOS window, waiting til 1PM for entry. I've repeatedly noticed that any TRUE reversal's direction is typically locked by 1PM (avoiding shakeouts). I'll sort the scan by "15M Chg %", choosing two Biggest % Gainers that have run all day; as they'll be due for sharp reversals once they cross the Dual SMAs. I've seen this play out SO MANY DAMN TIMES that I know it like the back of my hand now. The main frustration from today was in attempting Mid-Day Reversals too prematurely, which led to MULTIPLE shakeouts; giving back $250. This is why I'm now ONLY SCANNING from 12pm for potential plays to trade A-F-T-E-R 1-P-M..... BRANDON.. "OK, ok! Got it, got it"... The biggest plus of the day has been the adjustments to my trading setup. For market open, I'll now watch the 1-minute chart on the left in full-screen glory; while monitoring the 10-minute chart on the right for CLEAR key levels for which the slow-mover is 90% going to play off of. For 1PM Reversals, I'll simply cycle-click on the left screen to the right; for my TOS 2-Grid (5-minute); and again on the right screen, for my TradingView 2-Grid (10-minute). This is probably the GREATEST and most logical setup I've ever had. Tomorrow brings another day =) #Woosah

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PocketPAT

+1750 (BILL, FSLY) ::: After 20 months since I’d begun tinkering with the stock market, the strategy is now complete. I’d spent the first nine months following Tim’s patterns. They’d work, but I’d come to realize that their extreme volatility and sporadic nature were simply not for me. I’d watched all 5,000 video lessons at the time, 15+ DVDs, hundreds of YouTube videos and even attended the 2019 Trader & Investor Summit. Sometime between September and November 2019, after nine months of garbage trades and back to back red months, I’d decided to stray off of the beaten path to find what would work for me. I had no idea how long it would take and I certainly wasn’t going to start counting the days, but all I could do was build on the things that made sense along the way. It all started with FNMA. I’d noticed how clean and clear the chart was while Tim Grittani traded it on “Trading Tickers”. It was almost magical compared to the choppy and violent low float/low market cap penny stocks that are typically traded in the chat room. How could I find consistent price-action like FNMA? It slowly became clear that I could only find this with slow-moving Small/Mid (but usually Large) Cap stocks. I now filter my scan to only include tickers trading at least three-million shares per day on average, with market caps above one-billion. I am also targeting tickers between $20 and $100. The price-action gets cleaner and safer as the market cap goes up, but the higher prices are the key to their ultra-clear trends. I suspect that this is due to the lack of penny stock gamblers and beginner traders that would typically either scoff at prices that high or simply find their charts not volatile enough for big profits on small accounts; since the volume isn’t even that busy on one-minute candles, yet the price-action is still so easily trade-able. It almost feels like I’m with a smaller, more exclusive group of traders that are shooting fish in a barrel and clinking beers. SIDENOTE: One thing I’ve always heard is that Large-Cap stocks are “impossible to trade”, because of “all the algorithmic bots” that play emotional games to shake out real traders. Perhaps I have never dealt with this due to my not using Time & Sales or Level 2 and now using wide “Dual-SMAs” for customized entry and exit signals. Any shakeout games are typically caught BETWEEN the two SMAs, leaving my own personal entry/exit signals BEYOND both SMA only (more on that later). Then came a CHANCE discovery of Heikin Ashi candles, while perusing YouTube in bed, around 3am one night. These have “turned on the lights” for me. Suddenly, the crappy and unpredictable candlestick charts that I’d been trained to follow now made perfect sense; providing obvious trends which paired PERFECTLY with the slower-moving stocks that I’d grown to love. After figuring out which stocks to focus on and how to read them, I’d now needed proper entry and exit signals. That’s when the third leg of the journey started: determining which indicators to use. I’d eventually settle on TWO SMA lines, buying and shorting only when the price-action was beyond BOTH. While the first SMA was tight enough to provide early entry and exit signals, the second SMA was wide enough to give sort of a “second opinion” on whether or not the trend had truly changed. Making them both the same color, their constant intertwining keeps the strategy consistent for both long and short plays. While I’ve had to tweak them to find which lengths are best, the most consistently profitable signals seem to come from the 100 and 125 Combo on 1-minute charts. The fourth objective was to create a method for finding the tickers which would give me the most profit potential. These past two weeks, I’d dabbled with using earnings and news as catalysts. While both are effective, the most consistent method for MY strategy has been to simply sort my scanner by the Highest Average Daily Range. The logic here is that it doesn’t matter WHY the stock is moving, but only where from, where to and most importantly: how FAR it consistently goes. Sorting by Highest ADR focuses me on the tickers that have consistently PROVEN to provide ample range for big profits on even small share counts. At that point, I can simply choose the charts with the cleanest and clearest trends, following the Dual SMAs for each run. The last objective was to confirm the safest yet most profitable risk-management strategy. Trading the most volatile slow-movers, I’d needed a stop-out that was both comfortable and wide enough to rarely be triggered. At the same time, I needed a share-count that would still provide enough profits to make the trades worthwhile. I’d gone back and forth between sizing-in twice and sticking to single entries; but struggled with deciding on how many shares to use and at what price range. In the end, I settled on using two single-entry positions of 125 shares with a 1.00 stop-out (on two simultaneous Highest ADR tickers). I’ve found that sticking with this static share-count and price range not only provides me with a consistent flow of clean and clear (yet volatile) tickers, but also allows me to always utilize the exact same risk-management approach for every trade. I can always use the same stop-out and expect the same profits for every dollar-per-share that is earned. Also, using the “Dual-SMA” approach and back-testing on multiple tickers, the 1.00 stop-out is almost never triggered before the SMA reversal; meaning that I’ll typically be exiting the trade on the technical signal before the max loss. At the same time, raising the price range and setting the ADR minimum filter to 3.00+ gives me tickers that consistently provide a 5:1 or even 10:1 risk/reward throughout each day. The key has always been and will continue to be focusing on CLEAN AND CLEAR price-action, with tickers that have consistently flowing all-day runs/cracks. Sometimes the tickers provide a few dollars in each direction or all in a single direction, but the “Dual SMA” system has been guiding my entries and exits in a way that avoids both shakeouts and premature profit-takings. Lastly, after 20 months, I’ve finally reached PDT =) ... While I’d known that it was inevitable, my main goal was to confirm a solid strategy that I’d be prepared to fully exploit once the chains were broken. I’m still waiting for the funds to settle, as I suppose that ETrade wants to make sure that I’m good for the deposit before releasing the PDT count. Though, by next week, I expect to be trading on all cylinders and will continue to use day trades until then. After my account is released into the wild, I’ll finally get back to posting trades with charts for review =) #LongTimeComing

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PocketPAT

I'd replaced the 38-SMA with the 50-SMA, as I'd realized that it's a better indicator for entries and exits; but..... then I killed the intra-day SMA altogether. It was fun while it lasted, like VWAP; but ultimately, the 120-SMA is just much easier to trade from. It only gets crossed 1-2x per day and on volatile tickers like KSS (or the entire Retail sector right now) it's a clear signal for absolute trend changes. While even the intra-day 50-SMA can still include multiple shakeouts, the 120-SMA just floats along ALL-DAMN-DAY. It floats above or below the noise, just arrogantly sipping awaaay at it's cocktail on the beach... lol THAT'S WHAT I WANT... It collects profits little by little, all day; floating above the warfare in it's blimp, while I'm down on the battlefield like "IN.. OUT--IN!!! OUT!!!!!". What's better: I can now monitor FOUR tickers if I'm simply looking for occasional 120-SMA cracks/crosses only. lol Like, TOS, don't f***ing alert me unless the crossover is meaningful. *sigh* I just feel like the 120-SMA underSTANDS me lol.... Anywho.. The only drawback (because there must ALWAYS be one smh) is that trading the 120-SMA will sometimes give up a piece of the move on reversals that take place before it actually gets crossed. This can easily be avoided though, as I'll be monitoring the trade at all times (albeit playing PlayStation in the background) and the combination of RSI reversal flags + initial reversal candles (which both always seem to take place before the 120 is crossed) will be clear enough signals that it's time to exit trades. Also, the arch nemesis of the 120 is a sideways stock. These stocks crack and cross the 120 a million times per day; so I'll be avoiding them at all costs. I'll only trade stocks with large, long-standing runs/dumps (where the 120 can float freely); and once a stock goes sideways, it's DEDD to me.

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PocketPAT

I've changed my mind. After reviewing the scan results, I will continue to require that all stocks in consideration are EASY-TO-BORROW; so that I'll always be able to trade them both ways. My main interest is in charts. Price-action, not necessarily "good plays". I don't want to get into goldilocking tickers, "only long on THIS one" and "only short on THIS one". F*** that. Either it's tradeable both ways, with clean, clear and volatile charts; or it's blacklisted. I want to be able to receive an alert and quickly review the chart for a solid entry on ANY good move (long or short). I've also decided that instead of sizing-in by 500+500 on just one ticker, I'm going to split the equity again; reverting to my old trading style of entering two tickers at a time (250+250). With a 20-cent (-50) stop on both positions, utilizing 120-SMA crossover alerts with excellent chart histories; I expect to be trading very comfortably. The appeal that I continuously chase from trading two tickers at once, is the ability to capitalize on one trade while another is stagnant. I'll paper-trade this strategy over the next week, watching and alerting FOUR stocks instead of two. This is essentially all I've ever wanted from day trading: clean and clear yet volatile price-action, an ultra-wide stop for excellent risk-management, unlimited ease of entry and exit (being over PDT) and the ability to see huge moves ahead of time (now with RSI flags and long-term SMAs). ----- 3:58AM: Changed my mind again (somewhat). I'll still only watch/alert two stocks at-a-time and I'll stick to single-entries of 500 shares per position. My 20-cent stop will be -100; but from what it seems, that should be wide enough to never be taken. lol I'm avoiding sizing at all costs.

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