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Here were my 2020 Trading Resolutions (last year) and a rundown on how I did following them:
1) Avoid FOMO & Follow Stops
2) Hide P&L
3) Gameplan the open
4) Define swing trades
5) Introduce a new feature for http://openoutcrier.com
1) Avoid FOMO & Follow Stops
2) Hide P&L
3) Gameplan the open
4) Define swing trades
5) Introduce a new feature for http://openoutcrier.com
1) Avoid FOMO - Failing grade, I can't do it.
For me this is $TSLA or the SPAC craze or the EV/Battery/Charging runs.
For me this is $TSLA or the SPAC craze or the EV/Battery/Charging runs.
A stock or a sector gets on fire.
It feels like everyone and their idiot cousin is getting rich on these stocks and I'm the only moron sitting on the sidelines missing out on all the fun.
It feels like everyone and their idiot cousin is getting rich on these stocks and I'm the only moron sitting on the sidelines missing out on all the fun.
I can take small wins on news or volume, but can't get my stupid brain out of the way to ride the larger trend. I need to detach my rational real-world brain from my trader brain. Volume and price matter not what I think a stock is worth.
I've started to use FOMO Size, 1/20th the size of a normal position. Because I can't avoid trading these names, I can atleast minimize the damage of trading a coin flip.
Truth be told I'm better off avoiding these completely, its a waste of mental capital I could be using to prep for A+ set-ups, but since I know my demons I might as well live with the best version of them.
My biggest problem on FOMO trades is I'm usually right on the overall direction, I just butcher the timing.
This is MADDENING to me.
I've toyed with the idea of even smaller size and wider stops.
This is MADDENING to me.
I've toyed with the idea of even smaller size and wider stops.
1b) Follow Stops - C-minus.
I always set a mental stop based on what either the stock or option is doing (or a combination of the two).
I always set a mental stop based on what either the stock or option is doing (or a combination of the two).
When I'm trading my best, I cut losers crazy fast and move on. Preserves real and mental capital.
When I'm either too cocky or too lazy, I skip my stop, lose the bid to sell into and usually end up puking a position in frustration.
When I'm either too cocky or too lazy, I skip my stop, lose the bid to sell into and usually end up puking a position in frustration.
Some of this can be attributed to trading larger size (which I'll talk about later).
But most of it is just hubris (how can I be wrong?) or laziness (I'll just wait a little bit longer).
But most of it is just hubris (how can I be wrong?) or laziness (I'll just wait a little bit longer).
When I'm at my worst, I double down/cost average at the first level that really should be my stop, and exit.
My system is very aggressive and I usually know if I'm correct, right away. So when its not there, don't make it worse.
My system is very aggressive and I usually know if I'm correct, right away. So when its not there, don't make it worse.
We create trading rules to save us from ourselves, use them.
2) Hide P&L
2020 Grade: A+
I absolutely love this idea and what it has done for me mentally. I'm not looking at how much money I'm up or down, or where my break-even is. I'm just looking at the trade, reading the tape and making decisions based on that input.
2020 Grade: A+
I absolutely love this idea and what it has done for me mentally. I'm not looking at how much money I'm up or down, or where my break-even is. I'm just looking at the trade, reading the tape and making decisions based on that input.
I'm also not seeing how my day is going, so it keeps me hungry looking for the next trade. Then at the end of the day its a fun little game of guess the P&L.
I might even expand on it this year and hide my entry prices.
I might even expand on it this year and hide my entry prices.
3) Game-plan the open
2020 Grade B.
The first five minutes of trading is a free-for-all in the markets. Stocks and options whip around more than at any moment in the whole day. Without a plan it's easy to get caught chasing any number of false moves.
2020 Grade B.
The first five minutes of trading is a free-for-all in the markets. Stocks and options whip around more than at any moment in the whole day. Without a plan it's easy to get caught chasing any number of false moves.
Have an idea of what you are looking for or to do on the open, or avoid it.
For all of the premarket posts we make, I try and whittle that information down to 1-3 trade ideas for the open or day, and then file the rest away as in the past.
For all of the premarket posts we make, I try and whittle that information down to 1-3 trade ideas for the open or day, and then file the rest away as in the past.
One of the most consistent trades on the open for me was news in a story/hot stock.
For example: $BYND deal with a restaurant or $ROKU HBO deal, EV Delivery numbers or orders.
Basically trying to find that one piece of news the market will chase when it opens.
For example: $BYND deal with a restaurant or $ROKU HBO deal, EV Delivery numbers or orders.
Basically trying to find that one piece of news the market will chase when it opens.
