TRADING PLAN Daily Routine • 8:45 8:45 a.m. a.m. — rate rate gaps, gaps, develo develop p focus focus list, list, plan plan potent potential ial entry entry scen scenario arios s • 9:25 9:25 a.m. a.m. — morni morning ng focus focus,, get in “stat “state,” e,” reci recite te incan incantat tation ions s • 9:30 9:30 a.m. a.m. — tra trade de only only gaps gaps on the the lis listt • 11:30 1:30 a.m a.m. — lunc lunch h bre break ak • 1:30 1:30 p.m. p.m. — hun huntt for for afte aftern rnoon oon trad trades es • 3:00 3:00 p.m. p.m. — revie review w trade trades, s, do do record record keepi keeping, ng, journa journall trades trades Money Management • R siz size e will will nev never er be be more more tha than n 5% of of my my acco accoun untt • 3Rs max daily loss • 6Rs max weekly loss • 9Rs max monthly loss oss Position Sizing • R Siz Size e / Sto Stop p Siz Size e = Pos Posit itio ion n Siz Size e • Exam Exampl ple: e: $100 $100 / .10 .10 = 100 1000 0 sha share res s • Begi Beginn nnin ing g R size size will will be $100 $100 • R size size can be be increased increased by $50 after consistent consistently ly meeting meeting goals goals and and sticking sticking to plan plan for an an entire month or series of at least 20 trades, whichever comes later Trade Management • Entries • Stop Stop Limit Limit order order type type for for most most trades trades unle unless ss a marke markett order order needs needs to be used used to to quickly enter (and then only on liquid and non-spready stocks) • I always always know know my entr entry y, stop, stop, and and targe targett 1 before before ente enterin ring g a trade trade • Stops • Stop Stop Mark Market et orde orderr typ type e for for all all sto stops ps • Stop Stop size size is 1R on ever every y trad trade e — no 1/2R 1/2R or or 2R sizing sizing • If it’s it’s not not worth worth risk risking ing a full full R on, on, it’s it’s not not worth worth taki taking ng at all all • Full stop stop can can be trailed trailed on each new major major 5-minute 5-minute pivot pivot that forms forms after the entry entry,, as long as Target Target 1 has been reached — NOT before then • Targ argets ets • Targets argets can be be taken taken with with any order order type type appropria appropriate te to the situati situation on - limit, limit, trail trail stop, stop, market, etc. • Targe argett 1 is 1/2 1/2 of the the posi positi tion on at at 2Rs 2Rs • Target can be be taken taken as a bar-by-bar bar-by-bar trail on the first candle that touches touches the the target as long as the candles are small and the stock is liquid • Each Each succes successiv sive e target target is 1/2 1/2 the remain remaining ing posit position ion at anoth another er 2Rs from from the the previous target General Rules • I wil willl not not ent enter er trad trades es befo before re 9:3 9:31 1 a.m. a.m. • I will will not not enter enter trades trades betwee between n 11:3 11:30 0 a.m. a.m. and and 1:00 1:00 p.m. p.m. • I wil willl not not ente enterr tra trade des s aft after er 3:30 3:30 p.m. p.m. • I will will only only enter enter a given given stock stock 2 times times in in a sing single le day day
