Tuesday, November 28, 2023

GOOG Swing trade short & long trade

Current trading position: a swing trade short fade in Google's stock (GOOG).

Entry Strategy: I initiated the trade by entering at the low of the bar, which is notably distanced from the 9-day Exponential Moving Average (EMA). This entry point is marked by the first arrow on the chart provided. The rationale behind this entry is to capitalize on a potential retreat after trading into resistance.

Exit Goal: Illustrated by the green line on the chart. While fading the trend is not my usual preference, the solid resistance at this point offers a compelling opportunity.

Risk Management: To manage risk effectively, I sold half of my position when it reached 75% of my exit goal. Simultaneously, I'll be trailing my stop loss on the remaining half based on the high of the previous trading day, a strategy to minimize my risk while in the trade

Long Trade Plan: Should I be stopped out with the remaining half of my position, my strategy involves pivoting to a long position immediately. This decision is bolstered by Google's current upward trend and the formation of a hammer candlestick pattern, as indicated by the smaller arrow on the chart. My entry point for this long position would be at the high of the second arrow, with a stop loss set at the low of the previous day.

This trade shows a balanced approach to swing trading. As always, it's important to remember that trading involves risks and it's crucial to have a well-thought-out plan and adapt to changing market conditions.  Always learn to trade on a simulator before risking real money.

Wednesday, November 22, 2023

QQQ 15 Minute Trades - GO & Pullback Setup's

TWO 15 Minute Charts on the QQQ - Winner and Loser

First chart is the Go Setup - entry high of the 1st 15-minute bar and the stop is the low.

Second Chart is the pullback setup. Entry high of bar number 4, stop low of the bar. Sell at the end of the day as neither the exit or stop price was hit. Took a small loss on this trade.

Saturday, November 18, 2023

Deep Dark Chocolate Cookies

These are addicting - Deep Dark Chocolate Cookies

  • 1 large egg 
  • 1/2 cup unsalted butter soften to room temp
  • 1 teaspoon pure vanilla extract
  • 1/2 cup packed light or dark brown sugar
  • 2/3 cup natural unsweetened cocoa powder
  • 1/2 cup granulated sugar
  • 1 cup all-purpose flour, spooned into the cup (not packed) and leveled
  • 1 Tablespoon milk
  • 1 teaspoon baking soda
  • 1/8 teaspoon salt  
  • 1 & 1/4 cups semi-sweet chocolate chips, add some extra for optional topping*


  1. Creaming the Butter and Sugars: In a large bowl, use a mixer to beat the butter, granulated sugar, and brown sugar together on medium-high speed until fluffy and light in color, about 2-3 minutes. Add the egg and vanilla extract, then beat on high speed until combined. Scrape down the sides and bottom of the bowl as needed.

  2. Dry Ingredients: In a separate bowl, whisk the flour, cocoa powder, baking soda, and salt together until combined. With the mixer running on low speed, slowly pour into the wet ingredients. Beat on low until combined. The cookie dough will be quite thick.

  3. Adding Milk and Chocolate Chips: Switch to high speed and beat in the milk, then the chocolate chips. The cookie dough will be sticky and tacky.

  4. Chilling the Dough: Cover the dough tightly and chill in the refrigerator for at least 3 hours, and up to 3 days. Chilling is mandatory for this sticky cookie dough. Chilling the dough overnight is recommended for the best results. The colder the dough, the thicker the cookies will be.

  5. Preparation for Baking: Remove the cookie dough from the refrigerator and allow it to sit at room temperature for 10 minutes. If the cookie dough chilled longer than 3 hours, let it sit at room temperature for about 20 minutes. This makes the chilled cookie dough easier to scoop and roll.

  6. Preheating the Oven: Preheat the oven to 350°F. Line large baking sheets with parchment paper.

  7. Forming the Cookies: Scoop and roll the dough, about a heaping 1.5 tablespoons in size, into balls. For thicker cookies, shape the balls taller rather than wider. Arrange them 2-3 inches apart on the baking sheets.

  8. Baking the Cookies: Bake for 11-12 minutes or until the edges appear set and the centers still look soft. Tip: If they aren’t spreading by minute 9, remove them from the oven and lightly bang the baking sheet on the counter 2-3 times. This helps initiate the spread. Return to the oven to finish baking.

  9. Cooling and Final Touches: Allow the cookies to cool on the baking sheet for 5 minutes. Optionally, press a few more chocolate chips into the tops of the warm cookies for aesthetic purposes. Transfer the cookies to a cooling rack to cool completely. The cookies will slightly deflate as they cool.

  10. Storing the Cookies: Cover leftover cookies tightly and store at room temperature for up to 1 week.

Wednesday, November 15, 2023

15 Minute & Go Day Trade - IWM & Trade in the ES

Setup: 15 Minute & Go Day Trade
Stock/Index: IWM
Entry(yellow line): 2 Trades see below
Stop(red line): 2 Trades see below
Exit/Outcome: 2 Trades see below
Market Conditions:  Strong
Trade Process: Solid
Notes: Two trades in IWM index both with strong market condition's.  Entry high of the 1st candle, with the trend, stop the low. Risk management is key, trade within your means (never risk anymore than 1% of your account) and don't trade on a live account until you have had 6 month's to a year practicing on a simulator.
Losing Day Trades are part of the Game:  here is a losing day trade on a one minute chart, ES futures, where I just missed a winner with an entry on candle #2 and the stop low of the day. Trading is all about risk management. You will have winning and losing trades - they key is controlling the losing trades.

Saturday, November 11, 2023

Veterans Day: Masters of the Air

Veterans Day

Released in line with Veterans Day weekend, is the eagerly awaited trailer for the mini series "Masters of the Air." from Steven Spielberg and Tom Hanks. The series is based off the best selling book and in the same concept of the award winning Band of Brothers and The Pacific.

Bombing runs in WW2 took extraordinary courage and faced immense challenges. The mortality rate for bomber crews, especially in the early years of the war, was extraordinarily high. While the majority of the bombing runs was done under the safety of night by the American Allies, the Americans did their runs during the day, facing greater danger. This approach was in line with the belief that when the time comes to confront a bully, head-on is the only way to go. And when the time came for the Nazi’s, it was relentless. 

Today's younger generation often equates bullying with wannabe gangsters hiding behind internet screens. In contrast, the real bullies of the 1930/40s were the Nazis and Japanese Army, who took over more than half the world, preyed on the weak, and targeted women and children. However, these aggressors underestimated the resolve of the Americans and the certainty of payback for the atrocities that had committed. Whether in hand-to-hand combat in the Pacific or through land and air assaults in Europe, the determination of the U.S. military was undeniable as these men were from ancestors who shocked the world and whipped the British in 1776.

One notable aspect of veterans is their reticence about their experiences. I recall a conversation with my uncle, who enjoyed joking around, talking football, and always happy. I asked him about his time in the Army and the war, not realizing the sensitivity of the subject. I saw his facial change dramatically into an emptiness as he stared down at the floor. My grandmother shared that after returning, he spent weeks sleeping on the floor and refused to discuss his experiences, even after she discovered his Purple Hearts.

But veterans also leave us with inspiring memories. They remind us of the liberation of the oppressed and those unable to defend themselves, confronting bullies who harmed innocent civilians. A memory that stays with me is from an early morning in Luxembourg, around 5 am, after exploring the town all night. I was waiting for the hotel breakfast to open up before headed off to Bastogne Belgium. There was a women sitting in the breakfast room alone and we struck up a conversation. She spoke broken English and quickly recognized my American accent. She mentioned she was visiting her mother, who suffered from Alzheimer's and no longer recognized her. 

Yet on each visit, her mother always recalled one clear memory that she repeated over and over - it was receiving candy from American soldiers who liberated Luxembourg from the Germans when she was a child. That singular memory, vividly preserved despite Alzheimer's, reflects the profound impact of that moment of being set free after years of horrific conditions. To her that soldier, a veteran, was like a super hero. It was something I'll never forget hearing.

Thursday, November 9, 2023

1 Minute Pullback Trades: DIS, COIN, NVDA

Below are 3 one minute day trades - an option is to take the 1st Pullback and Go Setup on a one-minute chart after the open when passing on the pre-market gap and go trade.

First 2 day trades are prime setups and the 3rd day trade is not the greatest setup as sold off at the open. This trade is result of 2 quick winners and me pushing my luck going for a triple winner. Dumb - best to pass and day trade only the best setups. While its still my biggest trading weakness, not passing on average setups, this weakness has come a long way.

Each stock is in play with a strong up gap. Entry high of the candle (yellow line) and stop (red dotted line) low of the candle. Each trade completed within a minute. Do not trade this time frame until you have 2 plus years experience. One-Minute candles moves extremely quick and if you cant control yourself you will get destroyed day trading one minute candles. I will only trade this time frame within the first 5 minutes and then pass and call it a day or focus on 5 or 15 minute candles if the market conditions are ideal. 

As always learn on a trading simulator and risk management number one priority.

For more on time frames see my post here: Trading Time Frames




Saturday, November 4, 2023

Day trading time frames where to start and how to progress.

Day trading time frames where to start and how to progress. 

Starting Out: The Basics

1. Focus on Large Cap Stocks that are volatile: Begin with 5-8 large-cap stocks. These are typically more stable and provide a good learning ground. (example nvda, tsla, qqq, meta, aapl..)

2. Use a Simulator: Before diving into real trading, learn to trade on a simulator. It's risk-free and provides invaluable experience. If you're serious about learning to trade spend the first year learning to trade without the pressure of profit-making.  If you have the temptation to start with real money, resist it. The harsh truth is, without the proper groundwork, you're merely gambling. And if that's the path you choose, you might find better odds in Las Vegas.

3. Top-Down Approach: Start with higher time frames and gradually work your way down. This helps in understanding the broader market trends and gives you more time to make decisions and see how setups/patterns form.  Day trading takes time so don't rush the process and focus on the higher time frames when learning and work your way down.  

4. 20 EMA Trend/Direction: Base all trades considering the trend or direction indicated by the 20-period Exponential Moving Average (EMA). Keep the odds in your favor.

Swing Trading: Daily Chart Focus

Ideal for Beginners: If you're just stepping into trading, swing trading using daily charts is a great starting point.

Why It's Beneficial:

  • Suitable for small trading accounts.
  • Trades can play out over 1 to 3 days, giving you time to analyze.
  • Less stressful as it doesn’t require constant market watching.
  • Ideal learning time frame
  • Daily charts can be easily studied from the past to speed up your learning process.
  •  Focus on one or two setups, like the End of Day Setup or Zones with larger stops.

Day Trading 15-Minute Chart: for those comfortable with daily charts, move to the 15-minute chart.

Focus on Early Trades:

  • Ideal learning time frame for day trading. Will force you to observe the market for the first 15 to 20 minutes without making any trades.
  • Concentrate on the first 1 to 6 candles of the day.
  • Stick to one or two setups, such as the 15-minute go or the first pullback on strong stocks.
  • Trade the index funds (QQQ, SPY) and large caps stocks
  • It's not about trading frequently, but trading smartly.

Day Trading 5-Minute Chart: Narrowing Down the time frame, the charts will move quicker so will your decisions.

When to Use: Ideal when focusing on strong 15-minute candles, looking for the first pullback on the 5 minute chart as setup.

Stock Limit: Monitor no more than 4-6 large cap stocks for this setup.

The 1-Minute Chart: Avoid starting your trading journey on the 1-minute time frame. The pace is rapid, which is why it's not advisable for novices or those prone to impulsiveness. In this environment, mistakes happen swiftly and can be expensive. If you're not well-versed in what you're doing, the cost of your education could skyrocket. Commit to trading on this time frame with real money only after you've consistently demonstrated success on a trading simulator.

Strategy: Focus on ONE strategy - the first pullback is the one I focus on. If I don't catch a pre-market gap and go trade I may look at the 1-minute pullbcak. Limit yourself to monitoring no more than 4 stocks for this time frame.

Pre Market Gap and Go Setup

When It Works Best: This setup thrives in trending markets and when aligned with market conditions.

My Trading Routine:

  • I limit myself to 2 trades max between the Pre Market Gap and Go and the 1-minute pullback.
  • Then I focus on 6 stocks/index funds for a clear 5 and 15-minute setup that are outside the prior day's range and near to above the pre-market high or low.

Risk Management and Setup Selection

1 to 1 Ratio Rule: Aim for a 1 to 1 ratio in your trades. For instance, if your stop size is $0.50, set your exit goal at $0.50.

Strengths and Weakness: Understanding your strengths and weaknesses is vital to crafting a successful trading strategy. Acknowledging these personal traits allows you to build a plan that plays to your advantages and mitigates your less favorable tendencies.

It's imperative to not only recognize your strengths and weaknesses but to also actively incorporate them into your trading plan. Write them down, embrace them, and let them guide you.

My Strengths - My money management discipline and a well-defined risk management plan.

My Weakness: While I know the proper setups, I sometimes grapple with patience and end up taking sloppy trades to justify dragging myself out of bed  at 5:45 am to prepare. However, preparation does not necessitate action; avoiding a trade can be just as valuable as making one and this has been my challenge. My trading growth came with the realization that passing is ok, there is always another day and trade.  Lucky my strengths offset and minimize my weakness. This self-awareness led to realize less is best. 

  • I limit my focus to a select number of stocks to maintain sharp analysis, particularly within the first 20 minutes of the trading day.
  • For the pre-market gap and go, along with the 1-minute trades, I've imposed a strict limit of two trades maximum to reinforce discipline. I then move over to the 5 and 15 minute charts focusing on a small group of stocks/indexes to trade
  • When using the 5 and 15-minute charts, I adhere to the same limit of two trades, ensuring that I engage only when conditions meet my predefined criteria.

By understanding my weakness, I've set these boundaries to better harness my strengths, mitigate my urge to always have to make a trade, and focus on the best setups.