Road Map

AFTER you have:

  • Developed your Trade Plan
  • Determined when and where you will trade
  • Learned your System
  • Tested, refined, retested, and practiced on a Demo Account UNTIL CONSISTANTLY PROFITABLE
  • Identified how much Capital you can afford to lose
  • Purchased no less than 10x Your Annual Income in Life Insurance to protect the ones you love… (that’s the Advisor in me talking!)

THEN do the following with REAL Money:

  • Choose your stocks on a higher Time Frame (TF) of 1 Day+ (daily, weekly, or monthly)
  • Conduct VERY detailed Technical Analysis (TA)
  • From the above, determine the direction Price Action (PA) is likely to head i.e., the Trend
  • Wait for pullbacks/rallys into areas where you find CONFLUENCE of Support and Resistance (like Pivot Points (PP’s), Trend Lines (TL’s), Fib Levels, Supply and Demand (S/D), and general PA Congestion)
  • Look to enter ONLY in the direction of the Trend utilizing candle stick AND chart patterns, more Fibs (and Fib Expansions), MA’s and Divergence (via the Oscillator of your choice), to dial-in entry points.
  • Apply proper Money Management (MM) using logical, trend-based Targets
  • Check for News prior to EVERY entry
  • NOW enter off a lower TF, applying the same techniques/tool from above, to the lower TF chart
  • Once in a trade, continue to move Stop Losses (SL’s) to lock-in gains in an effort to hold on as long as possible to maximize profit… covering positions along the way- ideally until the Trend changes.
  • Take SOME profit out regularly and spend it or invest it elsewhere.
  • Keep your emotions in check- follow your System Rules and accept that you WILL incur losses.
  • Lastly, keep a journal, do NOT move SL’s (unless locking-in profit), stay away from the Non Farm Payroll Report (1st Friday of the month, 8:30a NYT), keep indicators to a bare minimum,
  •  and NEVER add to a losing trade… EVER!