Monday, July 20, 2015

Monday Target Trades Notes

Pre-Open Notes: posted 30 minutes before the open
  • Gap: Small gap up after 6 up day in row. Expect gap fill at some point.Would consider a fade of R2 pivot.
  • Prior Day Daily Bar: 6 up days in a row, stick with the trend long on pullbacks
  • 20/60/200sma: UP, stick with the trend 
        ES Support/Resistance Target areas
Support and Resistance Key. Green dotted Lines: Area to target to get long  Red dotted Line: Area to target to get short
NQ Support/Resistance Target areas
Support and Resistance Key. Green dotted Lines: Area to target to get long  Red dotted Line: Area to target to get short

Morning Targeted Areas
 These are the areas I will consider going long or short with at the open based off the current gap. (Gap may change after this post). I use a 2 point stop on the ES and a 5 point stop on the NQ. I target 4 points on the ES and 10 on the NQ. ES I mostly fade and NQ more momentum.

The night before I form a hypothesis of how I will approach the day if the market gaps up or down. I  base this hypothesis off the 15 and 60 minute trend, Support and Resistance areas, and the prior days trend. Preparing the night before removes the emotion of randomly placing a trade.

Attempt only trades in which the ES and NQ line up for optimal success.To be successful in trading master ONE setup before tackling another. Study it, own it and turn off the computer after the trade and let it play out.

How to succeed:
  • One day at a time devoting yourself to the same setup day after day.Think, sleep and eat your setup.
  • Skill is developed by hours and hours of working on your craft. Small advantages hammered out day by day.
  • Everyday write 3 things you learned from your setup.
  • An oak tree will not fall by hitting it at 20 different locations but by hitting it at the same spot day after day. 
  • Don't be afraid to make a decision. Don't be afraid to fail and have a losing trade. You will not be perfect.Trade within your means.
Factors to consider in a trade setup:
  • Previous Day Daily Candle Price and trend 
  • Today's Gap
  • Was the previous day a Breakout day, continuation day or flat
  • 15 and 60 minute trend or 5 minute 20/60/200sma - to stick with the trend
  • Support / Resistance areas .


* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE