Trading Plan

My Trading Plan

Money and Trade Management


  • Never lose more than my average days gain.





  • Step Away after a losing trade.

  • Stop when losing 3 trades in a row.

  • Stop trading when I say I’m done for the day.

  • Discipline is your best friend!


  • Mondays start with ½ share size or ½ stop size.

    • Increase to normal size only if you’re winning.

  • The day after a losing day start with ½ share size or ½ stop loss.

    • Increase to normal size only if you’re winning.

  • Use the same Stop Loss dollar amount for every trade by adjusting share size.

  • Use 1:1 Risk Reward Ratio and the 50% Rule.

  • If a daily profit goal is exceeded you may spend up to %25 of the excess profit towards trying to increase profit.

Stops & Profit:

  • Use mental stops when possible.

  • Never move a correctly placed stop.

  • Stop out quick and get back in later if warranted.

  • Take a minimum 1/2 position profit at the first pause or reversal area near or out outside the 1:1 ratio zone.

  • Take profit by stop out of 1/4 position outside the 9 ema.

  • Take profit by stop out of last 1/4 of position outside the 20 sma.

Trading Guidelines


  • Wait a Minimum of 5 Minutes to start Trading.

  • Waiting 8-10 minutes is best.

  • Wait for a Pattern to form.

  • No Trading after 11:30 AM.


  • Only Trade in Direction of Spy.

  • Only Trade in Direction of 20 sma.

  • Trade with the Stocks trend only.

20 sma:

  • Entering near the 20 sma is best.

  • Taking profit far away from the 20 sma is best.

  • Long above the 20 sma & VWAP, short below is best.

  • Be aware of Wide States and do not enter.

    • Wide state: stock is far away from 20 sma, 20 far away from VWAP, stop trading or reverse.

    • No 3rd Wave Trades, these would be far away from the 20 sma.


  • No Trading after 11:30 AM.

  • Trade Shallow Cups only, Double Cups, NRBC Breaks, Wedges, & Channels only.

  • No shorting tops or up trends until a second failure at or near 11 AM..

  • Remove afterthoughts & trade the plan.

  • Adjust share size before entry to maximum trade loss based on technical stop.

  • MAX 2 trades at once.

  • Watch the 9 ema for entry.

  • Don’t anticipate, Gap Up or Gap Down does not matter, trade the current pattern.

  • Gaps must move in the opposite direction before a trade.

    • This is usually covered by waiting at least 10 minutes.

  • Trade the Stock, not the SPY.

  • Add if it trends in your favor.

  • Optimal range is trading $7 to $65 Stocks.

  • Support & Resistance from Pre-market is the key.

  • Volume, 80k minimum on 1 minute candles.

  • Any move must pull back 50% before entry or consolidate an equal length to the move.

  • After a trade zoom out and analyze the stock before reentry.

  • Enter on 1st or 2nd legs only (no 3rd leg entries).

  • On a break, one green candle followed by red is weakness.

  • Entering at 9/20 cross, at channel lines, or NRBC near the 20 sma is best.

    • Avoid entering at consolidation, enter outside NRBC.

  • Healthy moves should not be pulling back and breaking their large igniting bars.

  • Exhaustion: use the three move rule and the length + Speed of each move to determine if exhaustion is near.

  • A large Bar rejected more than 50% is probable direction change or failure (void during first 5 min).


  • Making the right decision matters more than winning or losing money.

  • 83% of all losing trades are trades going against the 20 SMA.

  • On extremely volatile days trade smaller stocks.

  • On flat days trade larger stocks.

  • My winners are hiding in my losers, find the common denominator in my losses (calling tops, trading before 9:40).

  • Use the fear of losing to limit my share size.

  • Remember the feeling of losing and use that to enforce discipline on myself.

  • Ego, Anger, FOMO and Greed are account killers!

  • Mentally add a zero to my P/L each trade to take it more seriously.

  • Stocks: 3 letters probably NYSE. 4 letters probably Nasdaq.