The Sweet Sixteen of AHG
#1) Discipline at all times. Your most important rule, make no mistake, nothing surpasses this.
#2) The Monster. Never ever average down, ever. Scaling in but not surpassing your original intended size and/or risk is ok. Make sure you know the difference.
#3) Homework. Make sure you do your homework. Before the day begins you should have identified
any major pivots, trendlines on anchor and daily charts. Especially the anchor chart.
#4) Non optimal AHG days. Be extremely careful in days like FOMC, OEX or Holidays where the market is open.
#5) Reversals. Do not call reversals unless a reversal formation forms and confirms around a major pivot or trendline support/resistance. Tattoo this on your forehead.
#6) The trend is your friend and lack of trend your enemy. Do not ever go against the trend unless you have concrete reasons for doing so. ie. Major Pivot, Major Reversal Confirmed Formation. Learn to stay on the sidelines when the trend is not apparent ie. Choppy
#7) Risk vs Reward. When trading you must deal with commissions, slippage, bad luck, bad calls. In order to compensate for this your reward must surpass your risk on all trades in AHG, no exceptions.
#8) Control losses, and allow winners to run, this is imperative for consistent profitable trading.
#9) Under no circumstances must you allow big losses, ever. Take your small losses like a responsible trader. It's not about accuracy. it's not about being right, it's about making money. Do not be afraid of small losses.
#10) React to price, don't predict, let price guide you, don't ever try to guide price.
#11) No bias. Begin the day with absolutely no bias, completely neutral. Ignore news, yesterday news or what your momma told you.
#12) Enter wisely: New trades should be initiated in critical areas of support or resistance, this prevents noise from interfering with your price action analysis. It also eliminates, somewhat, the possibility of questioning the play - it should work or it wont, no second guessing.
#13) Overleverage. This is completely unacceptable. Trade a size that is adequate to your trading capital. You must survive to trade another day to make it. No setup is worthy of overleverage, not even one. We fill our glasses with drops not splashes. You want to grow, do it slowly, preservation of capital above all.
#14) Patience. It really is a virtue in trading. Patience for waiting for your best setups and patience for letting them reach your well planned targets. This is the cure for overtrading., If you could wait 8 hours a day to get paid little money at your past or present job you can surely do so in daytrading.
#15) Winning attitude. A positive mental attitude is essential to succeeding over the long haul, and my definition of a winning attitude is a positive expectancy from our efforts. Take a moment before the trading day begins to see yourself making all the right decisions, waiting for the market to come to you, striking at the correct moment, etc. It's a good way to increase your focus and get into the 'zone'.
#16) Determination: Pick a strategy, study it, analyze it, and apply it. Don't go switching your trading plan every week in hopes of reaching perfection, you'll become a master of none and end up nowhere and frustrated.
It was a pleasure seeing you all again.
Hail 2112 again! GD mods
Anek
#1) Discipline at all times. Your most important rule, make no mistake, nothing surpasses this.
#2) The Monster. Never ever average down, ever. Scaling in but not surpassing your original intended size and/or risk is ok. Make sure you know the difference.
#3) Homework. Make sure you do your homework. Before the day begins you should have identified
any major pivots, trendlines on anchor and daily charts. Especially the anchor chart.
#4) Non optimal AHG days. Be extremely careful in days like FOMC, OEX or Holidays where the market is open.
#5) Reversals. Do not call reversals unless a reversal formation forms and confirms around a major pivot or trendline support/resistance. Tattoo this on your forehead.
#6) The trend is your friend and lack of trend your enemy. Do not ever go against the trend unless you have concrete reasons for doing so. ie. Major Pivot, Major Reversal Confirmed Formation. Learn to stay on the sidelines when the trend is not apparent ie. Choppy
#7) Risk vs Reward. When trading you must deal with commissions, slippage, bad luck, bad calls. In order to compensate for this your reward must surpass your risk on all trades in AHG, no exceptions.
#8) Control losses, and allow winners to run, this is imperative for consistent profitable trading.
#9) Under no circumstances must you allow big losses, ever. Take your small losses like a responsible trader. It's not about accuracy. it's not about being right, it's about making money. Do not be afraid of small losses.
#10) React to price, don't predict, let price guide you, don't ever try to guide price.
#11) No bias. Begin the day with absolutely no bias, completely neutral. Ignore news, yesterday news or what your momma told you.
#12) Enter wisely: New trades should be initiated in critical areas of support or resistance, this prevents noise from interfering with your price action analysis. It also eliminates, somewhat, the possibility of questioning the play - it should work or it wont, no second guessing.
#13) Overleverage. This is completely unacceptable. Trade a size that is adequate to your trading capital. You must survive to trade another day to make it. No setup is worthy of overleverage, not even one. We fill our glasses with drops not splashes. You want to grow, do it slowly, preservation of capital above all.
#14) Patience. It really is a virtue in trading. Patience for waiting for your best setups and patience for letting them reach your well planned targets. This is the cure for overtrading., If you could wait 8 hours a day to get paid little money at your past or present job you can surely do so in daytrading.
#15) Winning attitude. A positive mental attitude is essential to succeeding over the long haul, and my definition of a winning attitude is a positive expectancy from our efforts. Take a moment before the trading day begins to see yourself making all the right decisions, waiting for the market to come to you, striking at the correct moment, etc. It's a good way to increase your focus and get into the 'zone'.
#16) Determination: Pick a strategy, study it, analyze it, and apply it. Don't go switching your trading plan every week in hopes of reaching perfection, you'll become a master of none and end up nowhere and frustrated.
It was a pleasure seeing you all again.
Hail 2112 again! GD mods
Anek