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

Six Types Of Market

 

• UpQuiet – price is moving up, but the day-to-day activity of the market is not active.
• UpVolatile – price is moving up, and the day-to-day activity of the market is fairly active.
• SidewaysQuiet – price moves very little over time and the market also shows little day-to-day movement.
• SidewaysVolatile – price moves very little over time, but the market shows a lot of day-to-day movement.
• DownQuiet – the price is going down, and the market shows little day-to-day movement.
• DownVolatile – one of the six types of markets in which the price is going down, but the market shows a lot of up and down movement, as opposed to a down-quiet market.

2. TRADING PLAN

S&P500

 

1. Trading Hours – 14.00-17.00
2. Profit Target – 10%
   
3. Discipline & System – series of trades (system) over single trade
4. Smart Money – bots and algorithms are targeting liquidations. 
5. Amount of trades – take 3x high quality trades a day
6. Supply/Demand  – stop loss 5 points, take profit 15 points, RR 1:3, batch size 1-2x
7. Scalping – stop loss 2 points, take profit 2 points, batch size 22x, main assumption of being right about direction 60%+, chart 15min.
8. Trend Following – if market is trending go with the wave and keep trailing stop losses
9. Batch Size – 4x 2.5