AT #24: $500 to $74,580 Challenge Week 9
Read time: 3 minutes
Sometimes, it’s a little bit hard to good entry for your trade. But this one drawing tool helps me from losing my hair.
In this Email
- Stats for the week
- The indicator I favor when the chart looks ugly
- Follow the rules and you’ll survive
📚 What I’m Reading
The Early Bird – Get stories that impact the stock market each day.
As a trader, news and economic events are crucial. The Early Bird saves me the time from digging through Twitter to find stories that impact the stock market by 7:00AM every morning.
Stats of the week
- Number of trades: 1
- Profit: +$92
- PnL %: +14%
- Account value: $742
- Position size per trade: $450
- Cash position: $2,611
- Tickers: $QQQ
It was a bittersweet week. The bitter part of the week was that the $650 went to $1,142 and then dropped to $742.
The sweet part was that $SOFI leaps went to 36% and I sold all of it, and withdrew the money.
Besides that, I’ve noticed that my trading plan has slowly been drifting away from the original plan. The original plan is what allowed me to have a massive 900% return in the month of October.
Once I tie up all the loose ends on the trading plan, I can start getting back in track with the goal of turning the $500 into a full-time salary.
The fib indicator saves you the ugly chart
This week, provided some really difficult entries for me to find.
When the chart looks ugly like the one above, I liked to use the fibinocci tool to find a point of entry.
You see the blue lines above? Those are my entry points. My stop loss point is the last blue line. Now, if I’m feeling kind of risky and I have time on my contracts, I’ll attempt the (1) marker line.
If the blue lines are at the bottom, that’s because I’m looking for an entry to get in calls. You do this by starting at the previous swing high, and drag it to the previous swing low.
If I’m looking for put entries, then the blue lines will be at the top. You do this by starting at the previous swing low, and drag it to the previous swing high.
Here are the configs to my fibinocci tool.
Follow the rules and you’ll survive
Anyone that is a trader, has an ego the size of lake. As a trader, it’s your due diligence to find out where price is like to bounce and reject, and follow the rules you’ve set out.
Imagine, you’re back in middle school and your mom tells you to follow these rules:
First rule, don’t do drugs. Meaning, don’t do drugs…
Second rule don’t get into fights. If someone tries to provoke me, I better keep it moving.
“Hey Ruben, you yuck mouth.” – Bully
And I keep it moving while voicing in my head, “You’re lucky my mama told me not to kick your a**”.
And third rule and not least, listen to my teachers. Simple.
Let’s say I get into a fight, and get suspended. You think it’s going to end there? Oh hell no…
You better believe I’m getting punished by my parents for breaking their rules.
Trading is no different. If you don’t follow the rules, the market will emotionally abuse you.
Moral of the story, don’t let your ego steer you away from your plan.
Follow your trading plan so when the market jumps you, it won’t take everything.
That’s it for today. See you next week.
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