Next up: Make it generate countless 'trading education' books and sell them.
ChatGPT: One Page Manifesto on Day Trading & Trading Plan
- Thread starter schizo
- Start date
Not bad at all! Of course there is plenty of space for improvements, but for a first draft it is not bad at all!
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Sounded better before/ you fudged corrected it
\even though one of my chart systems does fudge like that.
[i dont mean smear like a hot fudge sunday/ fudge like a slant or hedge]
I've asked the above Trading Plan to be revised for day trading.
I see that you have a trading plan for swing trading, which is a style of trading that involves holding positions for a few days to a few weeks. Day trading, on the other hand, involves making many trades in a single day, using technical analysis and charting systems. Day traders close all positions by the end of each market day and try to capture smaller price moves with larger shares. Day trading requires a full-time commitment and lower capital. Swing trading involves making trades over a few days, weeks, or months, using long-term trends and intermediate highs and lows. Swing traders keep positions open overnight or longer and seek to take advantage of a larger price movement. Swing trading can be done on a part-time basis and requires more capital and higher margin requirements.
To change your trading plan for day trading, you might want to consider the following adjustments:
- Trading Objective: To generate consistent income from trading stocks
- Risk Tolerance: High
- Trading Capital: $10,000
- Maximum Risk per Trade: 1% of capital ($100)
- Maximum Risk per Day: 3% of capital ($300)
- Profit Target per Trade: 2% of capital ($200)
- Profit Target per Month: 10% of capital ($1,000)
- Trading System: Scalping using price action and indicators
- Entry Rules: Buy when price breaks above a resistance level or sell when price breaks below a support level; use indicators such as RSI, Stochastic, or Bollinger Bands to confirm the direction and momentum of the trade
- Exit Rules: Use a fixed stop-loss of 1% or a trailing stop-loss of 0.5%; exit when the trade reaches the profit target of 2% or when the indicators show a reversal signal
- Position Sizing: Use a fixed position size of 100 shares per trade or adjust according to the stop-loss distance and risk per trade
- Trading Hours: Trade only during the most volatile hours (9:30 am to 11:30 am EST and 2:00 pm to 4:00 pm EST)
- Trading Days: Trade only on days with high volume and liquidity (avoid holidays and weekends)
- Trading Instruments: Trade only liquid stocks with an average daily volume of at least 5 million shares and a price range of $10 to $50
- Trading Journal: Record every trade with the date, time, entry price, exit price, position size, profit or loss, and any notes or observations
- Performance Review: Review the trading journal and performance metrics at the end of each day; identify strengths and weaknesses; make adjustments if needed.
Problem is that it is very generic and is inventing hot water. It is a basis to work on, not something that would make you instantly rich. Especially the entry rules should be tweaked for in individual trader...
What I like about it is, that it has all the points that a good trading plan should have. Including defined trading hours, defined trading instruments, trading journal, reviewing performance, etc.
Just take all these points and populate it with your own strategy.
What I like about it is, that it has all the points that a good trading plan should have. Including defined trading hours, defined trading instruments, trading journal, reviewing performance, etc.
Just take all these points and populate it with your own strategy.
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LOL /THAT sure has happened before
But that ''3% max stop loss'' + not sure that's a cash or leveraged stop??
But i would not suspect all the sells hit 3%\
IBD [Investors Business Daily ]battle tested cash max stop is 7-8% per position\
+really is not concerned with 3%.
As far as front runnin' a 200 period moving average, go ahead;
capital markets are not fragile+ most money /profits are not day traded /so it can work well, sometimes. Ants feed @ my bird feeder also +fine with me
What we really want is for chatGBT to tell you about a trading system that makes at money least 65% of the time (1:1 risk reward or better)
Such a system will make you very rich very quick, sadly i don't think it can do that.
Until then we are stuck with trading system suggestions that work less than 50% of the time, And that means you have to deal with all the emotional issues that comes with trading a system that loses more often that it wins.
All roads and plans eventually lead to dealing with the emotions of losing money often and living through losing periods.
Such a system will make you very rich very quick, sadly i don't think it can do that.
Until then we are stuck with trading system suggestions that work less than 50% of the time, And that means you have to deal with all the emotional issues that comes with trading a system that loses more often that it wins.
All roads and plans eventually lead to dealing with the emotions of losing money often and living through losing periods.