Canada, AB. Long term lurker, day trading for 18 mnths. LF mentor/guidance.

[JaiRo888]

Hello all.
1st post and all but will start off with this thread either way.

Im in Canada, AB and looking to see if I can find a mentor local/ish for guidance in regards to day trading.
Usually on other forums, theres typically sticky on what info someone needs to provide in their opening thread but let me know what you need to find out and I shall provide.

Day/swing trading exp: Roughly 18 months since start of COVID.
Investing exp: Approx. 8 years but passively via DCA (Dollar Cost Averaging) in a TFSA.

Blown accounts: 3 but making improvements over time.

1st account - was just a garbage way of trading, following tweets and discord pumps, buying tops of parabolic moves, only going long on stonks, not adhering to SL's, 5 or so lagging indicators on my chart lol, revenge trading, trading the open, PM trading etc.

2nd/3rd account - lots of improvements. Adhering to stops, setting SL at a technical levels, entering trades knowing where my 1st exit is on the winning side of the trade and ensuring leaving some on the table to let a winner run, no averaging down, no trading PM or AH or within 15 or so mins of the open.
Only also trade $20 and above stocks, use Futures or sector ETF for market sentiment, watch the tape and level 2 more closely around key levels for execution.

Ive lost a lot less over general trades compared to the 1st account but on these accounts, 2 faults have stuck out.
1 -
Over trading which in turn, dwindled down my account through, death by a thousand cuts which was the combined loss of losing lots of trades with small amounts and commissions (including costs for HTB locates).

2 -
Used last years strategy and not adapting enough. Last year I was just trading breakouts and had decent enough success to get my account up 300%, withdraw my winnings then blow the original account. I was doing that Q1 and Q2 and just had my a55 kicked lol.
Now Ive widened my horizon and more likely trade triangles, flags and the ol' c0ck and balls pattern (head and shoulders).

Now Im paper trading which I should have done in the 1st place, use a trading simulator (since I was working a 14/7 shift so get an hour of practice to read the order book in the eve when Im at camp). On my days off, I paper trade, make up game plans for trades ahead of the day.

Im looking to go live again as Im not getting the same feeling on the sim as I do when money is on the table. The plan is to trade 1-10 shares only on the long side (as the broker I use typically only allows shorts in the multiples of 100 for HTB locates).

Ok, thats enough for me but indeed just wanted to point out a few things about me so a prospective mentors knows whether Ill be a good fit or not.

If Ive broken any rules, either, 'forum culture' or written forum rules, let me know and Ill be sure to edit my post.

Please DM me, post on here, whatever to at least let me know youre somewhat interested and we can get a discussion going. Im game for listening to any plans.

Ending this thread is the question, but what can I do for you?
TBH, I dont really have anything aside from being a person who listens openly, willing to learn and provide compensation over time when noticing improvement on trades, whether its increasing skill set or profiting more. Just being straight up!

Thanks

 

[deaddog]

Why day trading?
What broker are you with. (Commission cost?)
Do you have a written trading plan?

 

[KCalhoun]

From your post, you have plenty of experience. Not sure why you need a mentor. The community here at ET is a great resource to run trading ideas by for candid feedback. You might want to start a journal thread in that sub forum to document what you are doing to get feedback. Your post is intelligent, so that's a great start.

The most useful thing I have found is, like ddog says is to have rules. I like to start with favorite setups, like 2-day high breakouts and gap continuations. Having discipline to follow the rules, that's a whole nother thing.

 

[JaiRo888]

Why day trading?
What broker are you with. (Commission cost?)
Do you have a written trading plan?

Why daytrading?

It suits my personality as Im fairly impatient but who outside of trading life, is patient enough to wait for a holiday special sale when I need to buy something. How I can relate this to trading is, I like the quick buck but at the same time, Im patient enough to sit and wait until a price is low enough for me to buy and, at the same time, know I can sell it higher quickly later on.
The possibility of trading and afford a living from home (or on the beach!), without a job that gives me a glass ceiling on how much I can earn or wait for someone to make a decision if I can do something, is highly appealing.
I dont even require that much, when Im consistent enough to earn on average 300 USD a day on a planned 50k cash account (100% leverage would take me to 100k), Id stay home! And when I mean consistent, this is over the 252 approx trading days in a year to include all drawdowns and profiting days.

What broker are you with. (Commission cost?)

I am currently with TradeZero for day trading, IKBR for my long term investment portfolio and swing trading. Commissions are $1 a trade at the volumes and amounts I trade with. Understandably TZ has expensive HTB locates but its something I can deal with until I am in a position to scale up (then look at using something like CenterPoint securities).

Do you have a written trading plan?

General morning consists of checking futures, news, Upgrades/downgrades, news feed (including earning if its the season).

Yes and I do this every morning and have a sheet I complete.
For example, I fill it details such as:
Ticker, Catalyst, Day of Run up, Previous day open to close, Volume Profile, Previous reversal type (i.e. do pivots happen fast or do they consolidate for a bit before turning), Float Size, Market, Short Vol, Relative Vol, Short Float, Analyst Price Targets, Sympathy Ticker, Daily RSI.
I also use Insider trading to see if there is big insider trading on that stonk in recent days/weeks.

Then I look at charts from Daily down to the 5 min. Mark out at least 2-3 res and sup points, price targets if each level if broken with stop losses for that area along with calculating the Pain to Gain ratio for that trade to see if its a worth while trade to take at that price.

Also then look to the ETF for that sector and see if that sector is up, or if sympathy plays are reacting to the news.

On my intraday charts (5 and switch between this and 15/30/60 min and 1 min is VWAP and Vol.
On my daily chart is 50 MA, 200 MA and Vol.
3 charts what I can look at for 1 ticker along with a futures chart in the corner (Spy, QQQ etc).
I put my PnL on a different screen in the corner, this window is not on my main screen.

I only watch a main stock on 1 screen, and 2 others on another screen, all accompanied with level 2. Anymore then that, my concentration to each ticker becomes thinner and at this stage in my day trading career, it only takes me so much to process whats going on so the less there is, the better I can see things until I build muscle memory to find what I need and act on upon quickly.

 

[deaddog]

It's important that your trading style fits your personality. You'll have to decide if you want to change your trading style or your personality.

One of the reasons traders fail is unrealistic expectations. I'm not saying you can't make 60k with a 50k account. (I know I can't) Most professionals don't outperform the S&P 500.

Look at the stats; somewhere around 90% of traders fail. Sure there are some who make it just like some hockey players make it to the NHL.

I wasn't aware that Trade Zero was available in Canada. I used IB years ago and was happy with them. Only direct access broker in Canada that I'm aware of.

Written plan should do a couple things. It's an operating manual. If the market does this then you do that. It should tell you how to deal with every situation the market throws at you.

It should also be a business plan, something you could take to a bank to convince the loans officer to loan you money.

What is you expect a mentor to help you with?

I usually suggest that you spend some time researching why traders fail. Then don't do any of that stuff.

 

[JaiRo888]

From your post, you have plenty of experience. Not sure why you need a mentor. The community here at ET is a great resource to run trading ideas by for candid feedback. You might want to start a journal thread in that sub forum to document what you are doing to get feedback. Your post is intelligent, so that's a great start.

The most useful thing I have found is, like ddog says is to have rules. I like to start with favorite setups, like 2-day high breakouts and gap continuations. Having discipline to follow the rules, that's a whole nother thing.

Thank you kind Sir.

I think thats what Im having with trouble on too thinking about, set ups. I only have a short set up on a multi day frame.
Typically if a stock runs up over 50% on day 1 and holds above this with min. R. Vol of 2, Im looking for a short the next day or the 2nd day after. The other I have is all on the day and over a day, or 2 days which include previous day gap/down and strength on the close and price AH, then into the PM and open. On the previous day, I look at the candle on say a 1hr chart and look at volume on a certain key level and note this for the next day, then review if it visits that area again.

 

[JaiRo888]

It's important that your trading style fits your personality. You'll have to decide if you want to change your trading style or your personality.

One of the reasons traders fail is unrealistic expectations. I'm not saying you can't make 60k with a 50k account. (I know I can't) Most professionals don't outperform the S&P 500.

Look at the stats; somewhere around 90% of traders fail. Sure there are some who make it just like some hockey players make it to the NHL.

I wasn't aware that Trade Zero was available in Canada. I used IB years ago and was happy with them. Only direct access broker in Canada that I'm aware of.

Written plan should do a couple things. It's an operating manual. If the market does this then you do that. It should tell you how to deal with every situation the market throws at you.

It should also be a business plan, something you could take to a bank to convince the loans officer to loan you money.

What is you expect a mentor to help you with?

I usually suggest that you spend some time researching why traders fail. Then don't do any of that stuff.

I agree with that expectation comment and maybe it was an overshot on my part but I had it placed as a daily rough return of 0.05%.
I dont really like to compare stats to pros to be honest since theyre in a different ball game, theyre under pressure to trade, make commissions on a daily or weekly basis using laaaarge amounts of money. Retail guys (depending of course they dont wholly rely on trading profits to feed kids and keep a over their head), have less pressure, and, well, if the trade isnt there, then theres no need to force it, there is no one breathing on the back of our neck.

Yes, Ive read that failure rate, however, what keeps me pushing is that, there are those few who day trade for a living on the retail side. Thats what Im aspiring for before I even think about prop level.
In regards to the failure rate, how many of these 'failed traders' really put in the hours, studied, adapted their games and gone through at least 2-3 market cycles, then kept pushing through at least a few blown accounts but, improving each time? How many of them gave up within a year or two?

Ahh yes, TZ is available everywhere since theyre Bahamas based. Im originally from London, England and have friends using it there too and just like IB, are DMA.


What is you expect a mentor to help you with?

As I wrote a response to KCalhoun, I know I need help with set ups spread over a multi day period. I mean, I can draw trends, look at Vol on certain days at the key level of a trend or pattern but knowing where the quality trade execution level is what can be improved.

Another bit of help, and is what Im focusing on now, is reading level 2 and tape. I watch replays on a simulator (using TradeSim) but, even in combination of seeing large BID/ASK orders and seeing where its flushes, I think its strength but then, dumps or pops to the totally other side.

So in summary, set ups and quality trade execution points. Also help with SL as even though I can hit the button when setting a mental SL at a level on the chart, it would be great to learn how to set a mental SL at a level where Ive see a bunch of sellers come in on Level 2.

 

[deaddog]

The question to ask yourself is why?

Why a mental stop? Why not a hard stop?

Do you have a check list of all the criteria a entry has to meet be fore you make the trade?
How often do you deviate from it because you're impatient?
Is the term "wiggle room" in your vocabulary?

 

[JaiRo888]

Why?
Why not? Its quicker and cheaper to learn from someone who has made all those mistakes. I mean, even if their system doesnt work for me, there are always pieces I can add to my own journey of finding 1 of many edges.

Why not hard stops?
Ive placed them at so many at levels, where on textbook says is a good place to add them, and even then, Ive been wicked out or had a flash knock out. I hate to say this, but could it be an algo or institutional wipe out to slap the stops off the table, set themselves up for a wash sale and then buy back in at a lower price?

Do you have a check list of all the criteria a entry has to meet be fore you make the trade?
I have a check list but is it right? Usually have trend, Area of Value (Range), Above/below VWAP, more buying or selling vol depending on bias.

Is the term "wiggle room" in your vocabulary?
What is determined as wiggle room? I set my stop at a pivot level and where I see sellers step up and at a point where I lose a ratio of 1:2/3 on a Pain to Gain Ratio. At this point on my journey, Ive experienced more larger losses when I deviate from this to let the trade, 'breath'.
If my pre determined stop is hit, then thats it, I get out and move along before I start a journey of revenge trading. 3 losses on the same ticker in the same session (by same intraday session, I count morning and Power Hour 2 different sessions), then Im out of that ticker regardless of set up. There are so many other tickers and opportunities to trade elsewhere than to risk beating up my confidence and mental state which can do more harm to me over the long term compared to trying to win on the next trade or move on and just absorb the few jabs I took that day.

 

[deaddog]

Why?
Why not? Its quicker and cheaper to learn from someone who has made all those mistakes. I mean, even if their system doesnt work for me, there are always pieces I can add to my own journey of finding 1 of many edges.

When I say ask why I mean for every thing you do. Why did I take this trade, why did I exit here and so on. If your answer starts with "I was afraid" you have things to work on.

Can you define your edge? Not to me but to yourself. If you can then your ahead of most traders.

Why not hard stops?
Ive placed them at so many at levels, where on textbook says is a good place to add them, and even then, Ive been wicked out or had a flash knock out. I hate to say this, but could it be an algo or institutional wipe out to slap the stops off the table, set themselves up for a wash sale and then buy back in at a lower price?

You mentioned that your large losses come from letting a trade breath. Take a look at your biggest winning trades; did they come anywhere near your stops?

What is it you expect the trade to do once you enter? If it doesn't do that then what are you going to do?

I have a check list but is it right? Usually have trend, Area of Value (Range), Above/below VWAP, more buying or selling vol depending on bias.

You determine if it's right by how the trades turn out. Win rate; Dollars won vs dollars lost; equity curve. At the end of the month if you have more money that when you started that's a plus. If you have more than you would have had if you put your money in SPY, your ahead of most traders.

What is determined as wiggle room?

Same as letting a trade breath. A rationalization for not taking your stop.