TRADING JOURNAL
A trading journal is a powerful tool meant to help become a profitable and stronger trader. Essentially, it is a written record of what happened during a trade.
1. TRADING RULES
Risk Management
- Leverage – max 10x, ideal 5x leverage
- Small Losses – the only way to increase account size is to have small losses
- Discipline & System – series of trades (system) over single trade
- Risk/Reward – search trades for min 1:4 RiskReward probabtility
Overtrading
- Relax – Don’t need to trade every day.
- Quality – Reducing trades is the key (only quality trades)
- Master One Strategy – master one trading strategy
- One Trade – Only one / two trades are enough for day trading
- Profits – account size increases by making profits not frequent trading.
Critical
- Time Element– give price time to execute, stay patient
- Market Goal – take your money
- Supply & Demand – put odds of success in your favour (supply/demand)
- Survival & Inventory – you hard earned cash is your inventory, never stockout
- Smart Money – follow smart money and supply/demand zones
Psychological
- Getting Rich Scheme – means repeatable trading proces plotted into months
- Market Has No Feelings – you cannot persuade it by speaking
- Todays market price – has already factored all news and economy
- Do not chase the price – wait once it back to demand zone
2. TRADING PLAN
S&P500
- Trading Hours – 14.00-17.00
- Discipline & System – series of trades (system) over single trade
- Smart Money – bots and algorithms are targeting liquidations.
- Amount of trades – take 3x high quality trades a day
Supply/Demand – stop loss 5 points, take profit 15 points, RR 1:3, batch size 1-2x
Scalping – stop loss 2 points, take profit 2 points, batch size 22x, main assumption of being right about direction 60%+, chart 15min.
Trend Following – if market is trending go with the wave and keep trailing stop losses
Batch Size – 4x 2.5
3. CHARTS
31/07/2022 – 06/08/2022
4. Weekly summary
- S&P500 via position sizing, playing every day, and learning theory.
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