P + F = D
Consistency is a function of a care-free objective state of mind where we are making ourselves available to perceive and act upon whatever the market is offering us from it’s perspective at any given now moment.
- Carefree – meaning fearless
- Objective – I trust myself to act in my self interest without any reservations, hesitations or internal conflicts under all circumstances
- No potential to associate this now moment with anything in our rational mind as a memory
- No potential to define or interpret market information in a threatening way
7 Principals Of Consistency
I am a consistently successful trader because
- I objectively identify my edges.
- I predefine the risk of every trade.
- I completely accept the risk or I am willing to let go of the trade.
- I act on my edges without reservation or hesitation.
- I pay myself as the market makes money available to me.
- I continually monitor my susceptibility for making errors.
- I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.”
Being Objective – Thinking In Probabilities (Fundamental Truths)
- Anything can happen.
- You don’t need to know what is going to happen next in order to make money.
- There is a random distribution between wins and losses for any given set of variables that define an edge.
- An edge is nothing more than an indication of a higher probability of one thing happening over another.
- Every moment in the market is unique.
Excerpt From: Mark Douglas. “Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude.” Apple Books.
- The variables that define your edge are present or not
- Trade in sample sizes (20-25 sample sizes)
- Entry Signal
- 9 EMA
- 15 EMA
- 9/15 EMA
- 65 EMA
- 1M EMA
- 5M EMA
ENTRY / EXIT
- OPEN. ABOVE 1M 5M EMA
- Entry: 9/15 EMA
- Exit: Open And Close Below 15 EMA
- OPEN BELOW 1M ABOVE 5M EMAS
- PREDEFINED PREMARKET RESISTANCE
Usually there will be a defined premarket resistance level. The premarket level keeps dropping and eventually falls below the 1M EMA right before market open, where the stock will open.
- There is a predefined premarket resistance level. May be an early entry point (2nd Bar).
- If the overall news is bad it will keep dropping.
- If no significant news, after the initial drop, it will comeback to the 9/15 EMAs.
- Once the stock starts coming back up – the open/1M EMA or the pre-market resistance may serve as the resistance level
One reason for this scenario is that the stock has had a good run and is now flattening so people decide to sell – anticipating a decline.
Based on 24 December, 2019
Category: OPEN BELOW 1M EMA ABOVE 5M EMA
The premarket price movement will end up with the stock opening higher than the 1 EMA. With a solid 1st bar. If the news is good enough the stock will keep rising. Otherwise we may get a flag in the first few minutes to 9/15 EMAs.
- Start early
- Price will stay above 15EMA
- Let it go until 10:00AM – 10:30AM or longer if able
- Set stop-loss at purchase price once the price moves higher
- Keep moving stop-loss up may be .50 cents (.50 DELTA) below the current stock price
Category: Open Above 1M 5M EMAs