As a consistent profit day trader...

Discussion in 'Trading' started by Leob, Nov 18, 2021.

  1. VicBee

    VicBee

    Plan, rules... you guys are pros, so how about explaining what you mean by these. Give examples. I trade stocks and most often look to enter and exit on the same day, but that rarely happens and I end up holding an extra day or weeks, until the stock price hits where I expected it to go on day one.
    One of my more recent lessons has been not to be afraid to take a loss and move on, rather than watch the price tumble and wait weeks for a recovery, if it even does.
    Another recent lesson has been not to go all in when your coveted stock price dips, because it will likely drop some more and when you think it's reached bottom, it will dip a bit more.
    These lessons are part of my learning process, but they aren't a plan or rules and I'd really like to know what you mean.
     
    #31     Nov 19, 2021
  2. schizo

    schizo

    Well, there are plans (or what I call strategies). Then there are rules. The two aren't necessarily the same, even though they work in tandem.

    Strategies could be as simple as looking at the chart for specific entry/exit points. Rules, on the other hand, are what will tell you where and when to trade, how long to hold, where to take profit/loss. Nothing fancy.

    Consider the chart as an example. I will enter at the lower channel line and exit at the upper channel line, if it ever gets there. I will set stop loss, usually just below the previous support. Couple things to remember. The channel is in an UPTREND. Unless you're really good, always always stay with the trend. Moreover, buying at the lower channel has the lowest risk.

    upload_2021-11-18_22-36-1.png
     
    #32     Nov 19, 2021
    yc47ib, LuckyMac and VicBee like this.
  3. VicBee

    VicBee

    This is the sort of analysis I do when trading but it isn't as structured in a plan with rules I as understood from the comments.
     
    #33     Nov 19, 2021
  4. LuckyMac

    LuckyMac

    Do you set a standard RR or risk?
     
    #34     Nov 19, 2021
  5. SunTrader

    SunTrader

    You look to enter and exit on the same day but don't - yet you want to know what rules/plan other use .....hmm
     
    #35     Nov 19, 2021
  6. SunTrader

    SunTrader

    Not at all.
     
    #36     Nov 19, 2021
  7. VicBee

    VicBee

    And so? What's your point?
     
    #37     Nov 19, 2021
  8. easymon1

    easymon1

    If a trader wants to use a Method then a blood simple way to start would be right here...
    https://elitetrader.com/et/threads/...solid-trading-plan.340340/page-4#post-5031706
    as time goes by...
    https://elitetrader.com/et/threads/...solid-trading-plan.340340/page-2#post-5011924
    Plenty of traders use means other than a written plan of action.
    If a trader is interested in exploring the use of Method and Plan,
    here's something to consider...
    Suppose your paycheck was based on percent entry triggers correctly taken?
    https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-12#post-5072564
     
    Last edited: Nov 19, 2021
    #38     Nov 19, 2021
    VicBee likes this.
  9. SunTrader

    SunTrader

    Should be obvious but ok I'll "spell" it out. You don't follow your own current plan yet you want to know what others do. Why? What is the point of that?
     
    #39     Nov 19, 2021
  10. Leob

    Leob

    Like this clear distinguish.
     
    #40     Nov 19, 2021