Sunday, October 2, 2016

Weeky Trade Ideas



The Major Indexes:
ES - S&P 500 (US index of 500 large cap Stocks)
NQ - Tech heavy NASDAQ
TF - Russell 2000 (small cap stocks)


Trend is up on all and all above their 200 day moving average (white line) and the 20 day moving average trending up. Dont fight the trend, stick with the odds look for long plays or pullbacks. Could still break new highs by year end and will play pullbacks until the trend is broken.

Update to Current Swing Trade Ideas. 
 Current Stocks Targeting for Week: E: Enter and S: Stop
- GPRO E:17.42 - S: 14.26 - buy 115 shares
- PETX E:9.91 - S: 8.89 - buy 350 shares
- SEMG E: 35.85 - S: 31.39 - buy 85 shares
- SXC E:7.25 - S: 6.25 - Buy 350 shares
- UNT E: 18.90 - S: 15.49 - buy 110 shares

Current Holds
- SRCL: Bought 62 shares @ 80.91 - Stop 76.70
- JD: Bought 184 shares @ 27.10 - stop 25.49
- ENDP 22.71 Bought 125 shares - Stop 19.70

This is not a recommendation to buy or sell. Follow and learn at your own risk. These are ideas I share and over the next few weeks Ill share the patterns I look for. Every Sunday I post stocks I am targeting for the week. Using a sample $25,500 starting account to make risk/reward decisions off of - will not use margin. Rules: Maximum stop loss per any trade 1.5% of account - Total Maximum risk per trade 20% of account (take your 1.5% risk / difference in Entry and Stop adjust to be shore its under 20% of account maximum) I shoot for a 3-1 risk reward on swing plays. Day trading 2-1.

This Weeks Tip: Expectations
Trading is a learned skill that takes years to recognize patterns and maintain discipline to take those small losses. Win 5, lose 5 and your ahead...provided you maintain those stops and stick with your rules.
For example the NQ is worth $20 for each point it moves. Capture 10 points with one contact and net $200. Lose 5 points with one contract and lose $100. The key is to wait for your Patten or setup and put odds in your favor. Having a 50% win rate is very reasonable, with experience,and a strong mind set. Don't trade for the $, dont trade anxious or angry as it will blur your decision making. Trade it as a game and it is the greatest game in the world. I may lose 5 in a row but I don't play double up or move my stops. Took me years to learn and I explain in detail in my business plans as I know those 4,5,6 in a row winning trades come. Have a good trading week.



* 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