Hey there! I hope you had a fantastic week! This week has been an absolute blast! This is going to be my first Live trade recap. Of course I have traded in a live simulator,but this time it’s with real monetary value. It took me 83 weeks in order for me to place my first trade. Once more this business is the most unique in the entire world. It offers few barriers to entry, all you need is a sum of cash and a broker to call yourself a Trader. There is a reason that 90-95% of Traders don’t find a state of consistency within the Stock Market. Again I am not a perfect trader, I just began my path towards the state of consistency. Before I go into the trade recap, I am going to breakdown some key aspects within my Trading Process. What works for me, may not work for you.
Trader the Ticker, Not the Company: This is a common saying in Day Trading. As a Trader, you are taking a piece of the pie. A fraction of the move. Of course, if you are a Swing or Position Trader then ideally you can take into consideration the long term growth or trend. For me, before I even look at the fundamentals, if the price action or the chart is not interesting then I will not continue. I am a Chartist, I love charts. Primarily because, the stock market is driven by human emotions, and the saying goes that Human Nature never changes! Focus on Absolute Price creation. Price Action is King. Prices move before fundamentals!
Start With Why: It’s very tempting to just click a mouse and call your self a trader or to place a Trade. Trading takes NO skill, all it takes is a click of a mouse. Creating a state of consistency within the Markets takes perseverance and grit. Those are just a few. For me, before I enter a trade, the question is “Why do I want to enter the trade.” What is my Thesis? What is my entry point? What is my stop? What is my target price? You must be able to answer those 3 before taking any trade ( entry, stop , and target.) In simple if you can’t answer the “Why” for entering the trade then you should likely pass on the trade and wait for the next one. The market is in constant motion. Don’t let FOMO take the trade.
How to Avoid FOMO: Fear of Missing Out is what often hinders begging traders. I still am struggling with psychological problems to this day. Every day is a mere reflection of my level of development as a trader. FOMO can often lead to over-trading, resulting in poor money management leading to an account blow-up. There is a common misconception about Trading. Just because, it’s called Trading does NOT mean that you have to trade every day! Trading randomly will only lead to random results, focus on the A+ Setups and your personality trades. How do you know if you have FOMO? Well, the common sign is over-trading, or an urge to bet when you shouldn’t. A great sign, would to watch the market for a full day and not trade. Resist the urge to trade. The Market is not going to disappear, it’s in constant motion. Look at me! For 83 Weeks I watched on the sidelines! I told myself that the patterns will come back because of Human Nature Never Changes! Look at $APT $CODX $AHPI $NNVC which is a gift from the Market. Avoiding FOMO is quite simple, but it requires discipline. What is common sense, is often not common practice. An easy way is just to walk away from the screens. I sometimes see a trend that I miss, and instead of chasing the stock, I simply just walk away from the screens. Here is a great tip. Try what I call the 90/20 Rule. I work for about 90 minute time period and then I take a 20-minute break. Give yourself a break within the Trading day. It’s bad for yourself to be in front of the Screens the entire day! For example, here is what my day looks like. 5:30 AM I wake up, 6:00 AM- 11 AM Screen Time ( 90/20 ). 11 AM- 1:30 PM Other activities. 2 PM - 3 PM in front of screens for the Market close. That is what a typical day looks like for me. If you are still struggling with FOMO I do recommend reading some Trading Psychology books, but in the end, it’s going to take Discipline and Market Screen Time!
Focus on Big % Gainers: Again I want the most volatile stock. I need the volatility in order to grow my small account. I am not saying that you can’t trade Blue Chip stock,but again find your personality within the Markets. I let the trades come to me. I don’t look for a trade, when I see a set-up I act with conviction knowing I have an edge on my side.
Focus on the Process, Not the Outcome: Filter out the noise. Going into the trade, don’t be fixated on how much dollar value you can make. Again money is solely the bi-product of your Trading.
Trading Recap Below!- All of my trades can be found on Profit.ly
$TXNP was my very first trade ever! Overall it was a great learning experience. Overall I had 3 Trades on this Ticker. I was 1 out of 3. Take a look a the chart below. As you can see the first trade I was buying into the dips at the consolidation level. This was based above the whole $1 Mark, which in my opinion was a bullish factor. I knew that $TNXP was going to make a move before close, but it was only a question of which direction. As power hour came, $TNXP cracked $1. There was a trend of change. I simply exited when my mental stop loss was hit. As you can see based, my original thesis was correct. This trapped the short nicely as the bottomed at the $.80 cent range. I did not take a piece of the Dip, I did not let FOMO take the trade. My first trade was a net loser, but a winner since I followed my trading process. Yes, if I had held my losses, it would have been ultimately fine in the end, but that would have taught me a bad lesson. Once more, by pre-defining the risk of every Trade you are taking full accountability and responsibility for the outcome! I was fine with the odds going against me because my risk threshold was within my range. The following day I place two more trades on $TNXP. 1 for 2 on this one. The first one I did trade in the pre-market session. I rarely ever trade in pre-market, do due liquidity issues, but $TNXP was well over a Million shares being traded on the day. As you can see from the chart. I dip bought $TNXP as this was holding the $1.60’s. I was aiming for a potential morning spike out of the open. I did not expect this to a spike in the pre-market session, but the market handed me a gift. I locked in the gains, and I did not get greedy. The last trade on $TNXP was a net loss. I was aiming to buy the breakout pass the whole dollar mark of 2. Instead, we got a fake out breakout. No big deal, I simply exited the stock. When my thesis is invalid I simply get the hell out.
$PRTK as more of speculative trade. This was a top-earning winner. I got long on the first green day, I was aiming for a Morning spike out of the open. Instead, we got a Morning Panic, then a strong Spike. I was long from the 4.34’s and sold at 4.36. Not great at all. Looking back $PRTK went to the high of $5. No FOMO. Onto the next.
$IPIX was a great OTC first green day set-up. Once more OTC is unique and acts differently compared to the other exchanges. I got long into the dip, in anticipation of a gap up or a morning spike. We had a nice gap, and I simply locked in my gains, there is no need to get greedy!
$TOMZ I am long over the weekend. This is another OTC runner that has been going full supernova. $TOMZ is as well a Sector hype play. I am no so confident about this one, simply because of the fact that $TOMZ is well overextended and due for a major correction soon. Perhaps I was chasing this stock up, if so then it will be a great lesson. Ideally, we are going to see a potential morning panic from $TOMZ Soon! If you don’t know what a Morning Panic is, below is a video from my Guru Tim Sykes to explain. I will see what the market gives me on Monday!
Once more the VIDEO RECAPS are live trades along with commentary! If you have any questions feel free to ask away! Have a great Sunday!
Week 84 and Beyond
Another week in the books! This week has been an absolute blast, to say the least. It only took my 83 weeks until I placed my first live trade. I sound like a broken record, but this industry offers instant gratification. There is no industry that offers a level playing field you have a 50/50 chance of making it. Along with that, few barriers to entry to become a Trader. No special degree required all you need is a sum of cash and an online broker to call yourself a Trader. I want you too read the tweet from @AlphaMind101 below.
I couldn’t agree more! If you really want to succeed in this industry then you are going to have to do what the 90-95% are unwilling to do. Build a solid foundation at the start of your trading career. Then branch out as you evolve as a Trader. Never be complacent, always have an open mind. Do I always get asked, “where do I start”? There are tons of free education at the touch of your fingertips, but few are taking advantage. How did I start? YouTube! I discovered Timothy Sykes, and was imminently hooked! I would recommend learning from those who have succeeded in this industry with full transparency. Again I am NOT a Master of the Markets! I am NOT A Guru! People always ask me to give them the “Holy Grail” to Day Trading. There is none! There are 3 main components in my Trading Process. Sound Psychology, Effective Risk Management, and a logical Trading System. There is no get the rich quick scheme in Day Trading, it takes girt and persistence. If you really want this you can’t give up, it will take time. In life whatever you are trying to aspire it will take time, but with persistence, you can achieve anything you put your mind too. Never settle for less, never give up. Many ask me, why do I keep going. I am obsessed! There is nothing I can see myself doing for the rest of my life than being immersed in the Stock Market. I know that it sounds crazy. You only die once! Live everyday! Don’t work for anyone’s else dreams, except for yours! Looking back the experience has been worth everything. I have nothing to lose! Have a Great Week!
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