I have made an adjustment with my risk going forward for this account. With my day trading margin account I have strict rules for each trade - the risk is same amount for each trade along with exit and stop rules - focus stays on trading the trade and not the money.
I have varied my risk with this account - notably by the strength and comfort with the setup. Last week I missed a nice setup shorting the SPY (would have gone long the SPXS) and it had to do with my risk. I was looking to take risk outside my comfort zone and in turn talked myself out of taking the trade - basically trading not to lose instead of taking the trade with a predefined comfortable risk.
Moral of the story set your rules/trading plan and risk tolerance and stick to it - keep the focus on finding the setups and following your plan.The mental game of trading is as important or more important then the process of finding and taking the trade.
For this account leaving my risk at 1.5% of the account value for all trades outside the oversold Index plays which are a favorite and will continue to use twice the risk.
IRA ACCOUNT WEEKLY TRADES UPDATE
Current Trades, update and watching:Watching CECO break of 13.47 and RYAM break of 21.46 - Daily Swing trade, volume pop at resistance - stop below 60 minute 20ema on both. Will trail with low of day - Will wait to after 15 minutes of the trading day before considering entering.
Account Rules: Model account started November 27, 2017 - will track for a year and compare account % vs S and P 500 (SPY) - Started with using a tracking model of a 20K IRA account to be compared VS the SPY which was 260.40 on 11/7/2017 – 77 shares total of SPY would have been purchased with the 20K.
- Will manage as an IRA account with 3 maximum day trades per week to stay under the pattern day trader rule for IRA accounts. Will take long trades only, day trades off my morning gap ideas and a few swing and index trades and post for tracking.
- Maximum risk of 1.5% account loss per day trade – Trades based around Day Trades with stocks under 20, Swing trades with stocks under 20 (maximum 20% in any overnight swing trade) and Index trades in the SPY, QQQ, or IWM using 2x and 3x leveraged EFT's that mirror the index. With swing trades I will not enter a trade the first 15 minutes of the trading day. Will double risk with oversold INDEX setups.
- 1 set stop – sell half at 1R, stop to entry price. Let remainder of shares run with stop under 9EMA and or 20ema with day trades. With swing trades will trail stop with low of the day.
- Will update when trades are placed - see below
Account to Date with closed position’s vs SPY
- Account positions closed: +3532
- SPY: Current 269.08 – November 27 260.40 with 77 shares (+8.68 = $668.36)
* Daily 1st Hour Trading Map Posted Daily before 9:30am Eastern Time
Prior Trade Results (DS-Daily Swing, WS-Weekly Swing, DT-Day Trade)
- ECYT - 2/28/18 - DT +620
- SPXL - 2/26/18 - DT: +250
- SPXS - 2/22/18 - DS: -260
- IWM - 2/9/18 - DS: +1157
- IWM - 2/9/18 - DT: 450
- SSO - 2/6/18 - DS: +1670
- QQQ - 2/6/18 - DT: 212
- KODK -1/22/18 - WS:-210
- NCS - 12/26/17 - WS: -110
- TITN - 12/27/17 - WS: +150
- CPRX - 12/6/17 - WS: -155
- GSWTF - 12/4/17 - WS: -115
- MARA - 11/28/17 - WS: -127
- PSX - 12/4/17 - WS: -210
(Current Trades and results- click below - vs S&P 500 Index)
Stock Trading Plan: http://www.howidaytrade.com/stock-day-trading-plan.html
E-Mini Trading Plan: http://www.howidaytrade.com/e-mini-trading-plan.html
* 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.