If you have just completed PTS and are starting your trading plan and you have no idea where to start here's a tip.
Yesterday I talked about having a Vision for your trading business. Today let's talk about pre-market routine. I think it's important to document our routine in the morning because it's easy to get side tracked by the wife or kids or maybe the internet and before you know it it's five minutes before the open. What should your routine consist of? Whatever you do to get ready to trade. Maybe you start about an hour before the market opens. Your routine might be something like:
8:30 Check and update any current positions. Review all accounts and any reports sent from broker.
8:45 Scan and make a list of potential gapping stocks.
8:50 Log in to Liver Trader's Chat room. Read Cliff's daily article it's likely to save you money today. 😄
9:05 Listen to review of Jared's gap list, suggest any of yours not on his list.
9:20 Put gap list and other notable finds on thumb nails.
9:25 Refine gap list and make a focus list of ones that fit your trading plan.
9:30 Make Money!
That's just an example. Your morning routine may vary especially if you like to sleep in a bit, but either way it's always good to have a plan for every part of the day so nothing falls through the cracks.
For more information on trading plans:
https://newtradersupportnetwork.locals.com/post/270588/the-dreaded-trading-plan
2 trades for me today with +1.5R total
1st Trade QCOM +2R
148.39/149.97 exit 143.25
12% gap down under pivot support and 50ma after a strong daily double top rejection,. I took it on a congestion breakdown with a fairly wide stop, leaving my 2R target 50c over its ATR, slow but consistent move down with great RW, hit my target on the penny before it bounced.
2nd Trade AQB -0.5R
9.40/9.70 exit 9.56
I rarely trade stocks under $10 and even more rarely short them. I liked this daily chart as it broke its uptrend channel and stayed under a strong 9.50 support line enough room to its daily 50ma. I entered after a pullback with a fairly wide stop but only 1/3 of its ATR used at the time. It failed to break down with the strong market open and stayed in a narrow range.
I actually broke my plan with this trade as I lowered my stop to a pivot where price made a big bounce earlier at 11am with a large seller sitting there. My thought was that if it breaks that level again then it will likely...
1 trade for (-1R)
I took a BD on QCOM. I was worried about the target being close to the daily range, so I took a tighter stop on the 2 min chart. I am looking through PTS right now, most of the examples have 2 options for where to put your stop. It looks to me like one of the stops would be at the bottom of the main consolidation area, and the other at the bottom of where there has been a shakeout or turnaround bar (if there has been one). Due to the daily range I took the tighter one on this. In hindsight it seems obvious to take the wider stop, but in the moment it looked ok.
I was then looking at the 15 min 3BP on QCOM, but the reason I used a tighter stop in the first place was because of the range. The 15 min 3BP would have needed to have gone even further than the wider stop on the 2 min BD, so I didn't take it.
