Each Day We Start at Zero

Each Day We Start at Zero

May 3, 2017
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Each day we start at zero. Hold on. Let me repeat that for you. Each day we start at zero. Ask yourself can you do that? Whatever you did the day before means nothing each day is a new day that you begin with nothing. There may be days you work for hours and lose money or make nothing at all.

I hope some of the things I discuss below will help you have more better days then not.
What type of trader am I? For me I look to play news driven stocks or the stocks you see traders talking about on Twitter or StockTwits.

“What Zozo you’re trading off of things people are talking about in social media what you just buy it and hope for it to go are you crazy.”

So let me clear that up. I don’t trade it because of them I look at the stock but trade it when it meets my style of trading. In other words I always make it my own trade off of my charts and setup. But I thank them for the idea generation.

I also look at daily charts with a possible breakout spot or showing strength I want stocks with volume and potential to move during the day. I want a stock to be at a certain price or taking out a certain level to get involved. I want after that trigger price to get the continuation move within a reasonable amount of time.

My share size varies based on where my stop is my stop is based on time of day (how green in my trading I am for that moment). My stop tolerance is not just based off a support spot. If it is my first trade of the day or a gap play in the morning I am sitting on the sell button if it goes against me. If it is a trade after I have made a decent amount of money for the day I can give this trade a little more space. So what am I trying to say here? That your stop is not just based on a support spot there are many factors in the stop you use. Let’s face it we are all emotional and yes we want to trade like robots but we are not.

You will become emotional on a trade so we must take this into account.
On each trade you will have to factor in things that will keep you from becoming overly emotional on the trade.

Some things to ask yourself before you take a trade. Why am I taking this trade? When am I taking this trade? What is the market doing when I’m about to take this trade? How is my account doing for the day am I up nicely green or red for the day? Is this my very 1st trade of the day? What is the reason I’m playing this particular stock is my setup right is it the things I look for on the chart? We must take this all in on every trade before placing the trading and knowing our stops.

If you’re day-trading, time of day what the market is doing volume in the stock you’re trading are so important. If you don’t have these things in your favor your trade may not work so you’ll have to remember that the next time you go long at 12:15 pm ET on a trade; “Time of Day”

If new to Trading, have a mental checklist. Is this the setup I like? Is time of day good? What are the market conditions? What is the SPY or IWM or QQQ doing? Are we in a down trending day, a strong upside day ? Am I able to explain this trade? Is my share size proper? Am I chasing an entry?

Many times someone will ask me what do I think of XYZ stock. First thing I do is look at time of day; what is SPY doing and look at the chart set up …. Are we above the moving averages is the stock getting volume does it have r/s(relative strength ) or weakness? Is this a news related trade are we breaking above a base or a hod (high of day )or is this a stock that has gotten hit that day and trying to make that 11:00/11:30 am turn around?

As a Day-trader we must consider the things that will make us emotional to keep them from making us emotional. To become more Robotic for humans it is not just a support spot on a chart for us humans to trade more Robotic we must consider the things that keep us from becoming that.