Monday, November 8, 2010

Develop a plan

I like the Wiki definition http://en.wikipedia.org/wiki/Plan
As it relates to trading, one must bring entries, exits, stops, your psychological make up, general crowd mentality, market conditions, self diagnosis and technical issues into the mix.
Learning technical analysis and how to read the markets ebb and flow is one thing. How to manage the emotional side is another.
Nothing should surprise you, you should have a response waiting beforehand for anything that comes your way. In this way you can keep an even keel and stick to what will make you successful- the plodding application of the few simple components of your trading system namely price movement, staying in the flow and sync of the markets, playing the probabilities. The probabilities will manifest themselves whether you are a participant or not so making money should be secondary to following your plan. The money will be a side effect when your plan is played to fruition.
If you know you can do it, really have no self doubt whatsoever then trading will be as easy as it seems from the outside. The battle is with yourself keeping the emotional side in check and letting the cold, hard, calculating side take over.

Attitude

GG


GG a good example of steady trending stock. Like a tractor it just kept towing me along

GG long entry















GG sell, take profits and breakfast.
Analyze the mornings trades, grade yourself on your performance. Keep getting back and centered to the faithful execution of your plan/edge/system . Turn off all distractions, its only what is in front of you that matters.
Get ready for any afternoon fireworks...

VECO


As a continuation from the first trade today I posted, after I sold VECO I shorted it and covered here.















and went long again, selling when it reached the same daily high mark

TNA whack a mole


TNA a good example of why I don't hold on to hope of things continuing forever in a particular direction. Earlier it was falling hard, I took profit and covered and went long. Now TNA is back to about where I shorted it. It's time to sell and take profits again.

TNA entry long playing the bounce









sell TNA, wait to see it if explodes upwards or falls down



SODA


Even on pure dice rolls like SODA you can mitigate risk and take the opportunity by trading your plan:
buy on a pullback, sell into a pop, take profits as they are offered up to you

SODA entry











SODA exit, $1 + gain

JKS


JKS short entry. When this little fucker moves, it really moves.

















Cover JKS a few candles later

TNA


TNA short entry

















cover TNA,
take profits,
look for more opportunity,
stay in the flow,
do what the market says to do,
believe in yourself.

VECO


VECO nice break to new highs entry



















sell VECO after it went vertical