BUSINESS PLAN

Mission statement : 
To consistently deliver profits each week from a combination of swing and day trades so that I can live a free lifestyle away from the corporate world. Reap the rewards of my success and independence so that I can give back to my community, my church and provide for my loved ones. (My dog Buddy) While doing everything I can to help others have fun and succeed in this profession.

 My trading Goals: 
Continue to educate myself on specific setups and styles of trading to maximize my profit potential including trading on both the long and short side of a trade. Work diligently to find potential opportunities each day for new trade ideas and develop a plan for each trade. Hold myself accountable for failing to follow best practices and reviewing each trade I make to evaluate where I could have improved the trade. Before entering any trade determine my risk reward ratio and abide by my trading plan for exit and entry points maintaining discipline in my actions. Face all of my fears head on and overcome them without being reckless or overly ambitious and instead be calculating, patient and meticulous in my approach. Take a break from trading if it stops being fun or I hit a slump so I can reevaluate and clear my head. Ultimately develop a 90 percent win ratio on all my trades consistently.

My Beliefs About the Market: 
The market, in my humble opinion, is the worlds largest casino. However, I do believe that I can tilt the odds in my favor if I do the work and take the time to educate myself on the different styles of trading and market cycles.

  Investing is a totally different subject and one that requires a whole different set of skills and mindset. I believe that the market is unpredictable and that hold and hope is often the strategy when it comes to many who are involved in the markets. That strategy may have worked years ago but in this day of instant trading and information at your finger tips that strategy seems flawed.

 Its a traders market in my opinion and I can be successful whether I am a day trader, swing trader or position trader. I just have to understand the psychology and mechanics of it all and then I have to keep refining my skills until they become second nature. I have to work out my brain constantly, switching up my workouts just like I do for my body.

Trading strategies:

Keep two separate and distinct accounts for each style of trading  a cash account for day trading and one for swing trades and long term holds which is also my IRA. 

I want to master intraday setups as well as swing trades of all different types. Snap back plays, Bounce plays, Bull flags, Bear flags, Double bottoms, Double tops, Head and shoulders, Cup with handle, Long term trend breakouts and reversals, Flat top break outs, Press release and Fluff piece plays, Sympathy plays, Base breakouts, Gap ups, Gap downs, trend and channel trading both long and short.

Recognizing that the markets are dynamic, characteristics change, sentiment changes and it requires me to change with it. I need to establish a routine and analyze the markets regularly to see if my current strategy is the right one. This can help determine if I should be scaling out of or adding swings trades. It also helps me decipher whether I should be looking for long or short day trade positions

For  my trades I will have a well defined line in the sand.. If the trade violates my line in the sand I will exit all shares without hesitation. I will take profits on at least half of the shares if the stock moves too far too fast. Example: 10 to 30 percent move in one trading session if its a swing or in one or two candle if its a day trade. I will keep some share for a lotto play if the stock appears to be holding up well and consolidating for another move. I will add to that position if the trend continues to work in my favor and the stock presents another setup after consolidating. Certain parameters must be met with other indicators such as volume,  stochastics, and  overall market performance for me to execute that trade.

 I will not accept losses larger than one percent of my portfolio in one trade nor will I risk larger than 10 percent of my portfolio in one trade either for swing or day trade.I will manage each trade as its own separate and distinct business plan without influence of emotion or influence from a prior / similar trade in  this or any other stock.

Daily procedures: 
Wake up at 4:30 am  do some exercise to stimulate the mind and body. Eat a decent breakfast for fuel and drink a glass of freshly prepared juice and a glass of water to re hydrate.

 Do a pre market scan of all the the movers. Check all the various news sources for potential plays or potential events that may impact the markets throughout the trading day. Look at the overall market and check the charts to see if there are any potential stumbling blocks lingering on the horizon.

Review the charts that I found from my scans the night prior and pick 4 or 5 that I like the most. Examine the strategy for each setup and make sure I have the plan outlined properly. Watch the open and give it ten to 15 minutes before getting actively involved. Watch the stocks on the 5 minute that I am really interested in and look for multiple time frame alignment for proper entry. Refresh my goto list which is ranked by percentage gain for the day, and look for stocks making decent percentage moves. Pull up the daily as well as the 5 minute and look for the setup as well as possible entry. Take profits when they present themselves (IE don't be a greedy pig)  realize not every trade will be a home run! Singles and doubles add up over time to become grand slams and home runs slow and steady wins the race. Always cut losses immediately if the trade goes against me but have the patience to let my winners work for me.

Take Buddy for a walk and do some more exercise, eat lunch maybe play a game of chess against the computer.

Check post market for movers, go through all my TC2000 scans and look for the next days setups. Review the trades that were taken throughout the day. Make a detailed list of the mistakes I may have made and try to establish how I can improve and potentially avoid making the same mistake again in the future.

 Review my alert list and go through my Goto  list making any deletions or additions to the list that I deem necessary.

Make at least one person laugh throughout my day, myself excluded.

Weekends are the heavy lifting in terms of building my watch list for the following week. I go through many more scans and create my video watch list.

Psychological challenges: Fear and Greed 
I recognize my biggest challenges by far. are those of the mind. The fear of losses or missing out on a big run. The greed that comes with having some winning trades and becoming overconfident in my own abilities or getting sloppy with my discipline. Having a few bad trades and being able to overcome them. Being able to admit when I am wrong and take my medicine without letting it do damage to my psyche, Rather then letting them serve as valuable learning experiences and embracing  the lessons as a positive experience. I can not allow myself to fall into a rut and I need to constantly challenge myself to be better. I need to seek out advise and support from others that understand what I am going through. Those that can relate and provide me with guidance and positive reinforcement as well as blunt criticism. I need to continue to work hard at educating myself, to build that confidence so that I can have faith in myself. Ignore all the market noise and talking heads let the price action be my guide I need to think before I react and take my emotion out of it.

I need to be humble and grateful for the experience of doing what I have tremendous passion for as my career. I need to take my experiences and use them to help others. Using my own mistakes and successes  as example to help guide them through understanding or overcoming their own challenges.

Education plan:   Continue to take online tutorials @ Worden to strengthen my scanning abilities as well as providing me with the tools to take full advantage of everything TC2000 has to offer. Continue to retake the Boot camp Courses @ Bulls on Wall Street. Engage with other like minded individuals through Twitter, Stocktwits, my blog and events for traders that are held here in Las Vegas. Continue to read books, other peoples blogs, and articles that I find compelling that are geared towards my style of trading. Continue to write my blog, which acts as a journal and record my video watch lists each week.