How I plan my trade $CTRP $CLF $USO novice traders pay attention!

I always have a plan for lot more tickers, but will share just few.
I mainly look into day-trades, I love instant gratification and I personally do not enjoy to have too many opened positions over night. However the "workload" done to enter a trade weather swing or day-trade is the same. Hence for my day-trade, I am looking for a set up that will be preferably good for a swing trade. If I get some decent profit on the day trade, I may leave small position for a swing that will not affect my day-trade profit significantly if goes wrong. On the positive side, if the swing-trend is correct as I planned, it can make a substantial gains simply by doing nothing and letting it ride. Make money while sleeping,  I would say.

                                                        CTRP Weekly for better clarity
So this is how I plan:
First and foremost , I look at the big picture, the bigger time frame, monthly, weekly daily to get clarity on the major price action, the major trend. Where are the major support and resistances?After I defined those, I will know almost exactly where the price needs to be so I have a green light to get involved by using the same price action "decoding" as I used on the bigger time frames.
CTRP 

I read the chart from left to right:
60.00 was high
70.00 was  higher high
From 35.00 to 70.00 there is a uptrend
From 35.00 to 70.00 the volume shrinks. When volume shrinks on uptrend it may be good sign for trend exhaustion, and possible reversal. So there is THE FIRST SIGN to check mark.
After the high 70.00 price drops below 60.00, reverses hits 60.00 acting as resistance now, deeps to 45.00. The inability to stay above $60 is THE SECOND SIGN of possible change of trend.
For those who cares about fundamentals ( I do not BTW) :Earnings reported on March 19,   0.11 per share , price jumps near 60.00 the one that already failed to be broken. Interesting: 0.11 is the worst earnings since 0.114 reported on Feb 2014. HA! but price went up ? Ahaaaaa because the analyst expected loss of -0.31 per share but in fact CTRP had "GREAT "  worst earnings in a year ?? hahaha. SO there is THE THIRD SIGN if you are a fundamentalist. That's why I do not waste time on fundamentals. Price action shows IT ALL.
So my risk level for short will be over under 60.00. I will look to lose an amount based on he intraday chart will watch it closely on Monday. The risk reward shall be min 1:3 or day trade or lot more if this turn into a swing trade, which would be ONLY if I am right on the day-trade.
No loser ever shall turn into a swing trade !!!


Note*  
Just like in all my other posts: I ALWAYS look from the pessimistic point of view:
What will happen if trade goes wrong?
How much I may lose?
Can I trade again after possible loss?
Can I pay all my bills if  lose on 10 trades in a row?
That is how I figure the size

If you think this is helpful let me know , I may do more similar posts
I love to re-battle any comments too -  after all this is all fun.

$CNDO $FOLD $VSLR the winners and $ESPR the loser

Great trading without breaking the rules.
Nice green day while general market closed in red. Thats the icing on the cake finishig green when major indexes  closed in red.

The trade of the day was CNDO
CNDO long 3.91 , 8 min after marked opened  
CNDO after I locked in half  
CNDO alerted myself in tweeter when to take profit 

                                                         CNDO daily     CNDO Intraday
How did I find it ? I scanned  for advanced on higher then average volume. I went through many charts very quickly and located this as best potential mover for today. Hope my friends took advantage of this move. I don't want people to follow and copy my trades , but for those who understand the thought process this was an easy money. If you do not understand the though process then read read my first post post here. 

I will ill update later  the other trades

Three Trades Three Winners BIOS RAD BDE

Another day without braking rules, did not trade much , although there were some great opportunities. Besides the two shorts,  the BDE was excellent long. It held the yesterday break out above 9.40, for a nice long run for almost $1.00 gain. A text book long trade above the major daily support 9.40 which was a  resistance until yesterday. The 9.40 is  daily swing high.
This long trade idea was actually born yesterday when I was short. This is how it all came down yesterday in explicit details that I like to re-read once in a while in other to condition my trading /mind fitness. BDE the yesterday's short real time review 

                                                   BDE  daily      BDE Tuesday  Wednesday

RAD shorted 8.26 

                                                      RAD short 8.26  covered twice
BIOS short 7.71
BIOS was very patient with this trade when idea is right  
BIOS triangle argument: was it ascending or descending ? Was it long or short triangle?
Well who cares! All I care is weather the bottom of the triangle is far from any daily support or near by. If the same set up of such triangle was right above major daily break out point, daily resistance that turned to be a support, I would be long biased.
In this case study, the triangle on BIOS was on far overextended daily level, with no close or near by daily support where longs may hold onto their positions.
That how simple I like to explain to myself when I wander to be weather short or long. No indicator can 100% guarantee me the direction of the move.
So why bother with complicated studies, when can make it all very simple and less brain hurting?

BIOS    short 4.71    

Note: Keep it simple stupid so a 10 year can understand. Explain to a 10 yr old , if he doesn't get it from the first time , DO NOT TRADE IT !

BDE the short explained

People keep asking me questions, "how did I know" , "how did I get lucky", "How this and how that.."

And they see me I twit the entries real time non stop , I do not talk about trades I took  that I have not twitted real time. ANYBODY CAN do that. It's all about hard work. Putting yourself in doing things that average people do not want to do. Searching and searching and planning all day just to catch that ONE FISH. Sometimes there is nothing out there. So I do nothing! Doing nothing is doing something. You chose to do nothing!. 

When do I short a stock? Simple , when the longs are happy with their profits and are willing to take them. Am I always right? Nobody can be right all the time , in fact I am actually 50/50 on average , with periods of time when I am less then 50% and sometimes more then 50% right. 

While I am writing this BDE is chopping around my entry 9.26 , I have no clue if I will lose or make on this short.  But I know what I stand to lose. I am ok with my size, I am ok with my entry, which is near major swing high 9.40 that I measure my risk tolerance. Look at DAILY chart to the LEFT. 

If this work all the time , we all would be rich and millionaires. The only thing that must work all the time is my discipline to adhere to the plan , and to execute with no emotions, if PnL goes red.

I need to see a good trading size above 9.40 to take this loss. But the idea for short still remains for today so re-entry is possible. if I get stopped.

BDE went through 8.80 swing resistance today as well as through 9.30 swing high, and it is not impossible to go as well through 9.40 and much higher. So there is my risk  tolerance for short. plus has huge above avrg volume , so I will not underestimate its power to go much higher .

11:21 am I saw bigger size printing a bid, Id say longs selling to take gains. If after such price action I do not see a drop, and instead the  price moves higher , there is no reason to be short any more, since the size at the bid was just accumulation,  by "somebody" picking up the long's sells.

I may use any kind of indicator and  I can be still wrong or right. I'm stopped out 9.48 from short 9.26. Risk was manageable and the reward I was looking for was 50 cents or more. 

Now naturally is to look for something else to get in to make the loss back, but , I know that tomorrow morning will be much better opportunity then today during end of day. 

So I will just remain calm, and wait till tomorrow unless I see something really very good as I call it a "penalty kick" 

will update more later

                                                     BDE  daily         BDE intra day   short 9.26

3 winners AMRN MVIS USO 1 loser SUPN

No rule braking day, hope to have a good streak.
I know I will brake some rules at some point, but will try not to as long as possible.
The two winners AMRN  and MVIS had same identical set ups.

AMRN initiated short 3.22
AMRN the set up short 3.22

MVIS short 3.36 initiated 
MVIS the short set up 3.36 

                                                         MVIS covered from 3.36 3.20


USO long swing 16.30 

USO the swing long, closed in positive above 16.30 so kept it swing with stop LOD today




SUPN the swing long 11.70    

SUPN  when I m wrong Im wrong, closed with discipline !!  Great trade !!

LOCO gaper well handled loser

LOCO just did not go well but the risk was limited and under control per plan.
The plan was to risk $0.50 with possible reward to gain $1.00 or maybe more

Loco short 26.85
LOCO stopped out 27.35

After this  I kinda chilled,, did not see anything worth the risk, and hit the tennis court.
I will spend some time of the weekend to read my journal. That reinforces my strengths and reminds me of my weaknesses. The best trading book ever :)

The winner MNGA and the winner AMPE

Green day  again.  Two winners out of two trades. But are those winners the same ?
MNGA short .99
MNGA chart short .99
MNGA the cover 1:3 Risk vs Reward

                                                     MNGA daily         MNGA 5min

The streak of non braking rules in my trading is over today , although I had two out two winning trades. This is what I normally do not do, but some days the mental power is weaker, and wish if I could be tough and  admit when I'm wrong more often.

                                                    AMPE  daily      AMPE 5 min

AMPE was a ticker without near overhead resistance, but took the short due to being overextended, and the lower highs. I said many many times , and I normally obey this rule, that :

• when I am wrong right of the bet , I better close it out and look for re-entry later if price action allows. 

I did not get stop, and my unrealized PnL was down almost as much as I was up on MGNA trade. Got lucky this did not shot up and did not made new highs today. I covered even with small 5c gain.Pure luck !!This must not happen again. I was good for almost 10 days in a row without breaking this rule OBEYING THE PLAN and THE RISK. Many traders will not even pay attention on this, and will count the green days in the row. Again:

•  It is not the green days in a row we need to count, it is the days in row we trade without breaking the rules  

I can always be wrong and take the small loss, move on and forget about it. Better then to be wrong and in pain all day and miss great opportunities. What is mentally  easier? 

The mental power is lot more valuable then the dollar power. If I lose the mental power, I can't focus on opportunities all around me. The bigger the dollar loss , the smaller is the mental power to execute well, and to make right decisions.  Here is a great video on this topic by a great trader, about reducing the mental strength and ability to make decisions by increasing of the dollar loss. 

A must watch video here:  The mental strength

During the "lucky short trade" in AMPE,  I missed on great set up like this that I was able only to watch unfold and stay frozen not taking action 

SUPN the short set up 

SUPN the trade without me on board becaus of AMPE

I will work hard on trading without breaking rules regardless how many times in a row I may be in a wrong trade . That's my promise.