This is one example of a monthly “check-in” where students do the work to apply our principles to their trading and gather the evidence needed to make strategy-adjustment decisions. This exercise involves self-reflection, self-awareness, and self-mastery. “Lifelong learners, students of the market” do this on a regular basis to stay aligned with an ever-evolving market.
A prosperous New Year to you and the Tortoise community!
This year started well for me. I think I am beginning to get the real value of intraday techniques in my overall trading. Last December, I was not successful in carrying over my DAYTRADES into SWING which I previously said to have caused me a couple of -3R losses because I did not dial down the amount of shared held overnight.
Starting this month however, I’ve had a handful of successes. Whenever some of my day trades ended with at least 4R gains, then I would hold them overnight and start SWING trades. While some trades ended up round-tripping and even losing (the worst was an 8.6R loss), a handful turned out so well.
BYND netted 150R from an initial risk of 0.80 cents (1/2 of Frog Box) on a hybrid frog entry. I was able to scale in 3 bullets and sold all on January 14 at around 132. The R-graphs on the left does not yet include five open trades that have unrealized gains of +113R.
This is an AHA-moment for me. If I continue to find day trades that generate enough Rs to fund swing trades, then I would be willing to let these stocks run. Then these Hybrid trades become just a science experiment, as you often say. My new goal is to keep the losses from these swing trades tighter while trying to score enough home-runs,
The case study above is a typical response to market conditions that presented an opportunity for a low-risk trade in precious metals (WPM) on the morning that the Senate began hearings on the Trump impeachment while equity prices were at an all-time high. This was a situational opportunity that combined the best of swing trading and day trading to exploit short term conditions. It became a data point in a larger set of cases in our “database of learning”.