Consistency. That will be the theme starting this year and on. Consistency in following through with every thing that I say that I'm going to do relentlessly. How I or anyone does that is finding solace in the process over the results.
The most common question I get asked is:
"How do you hold your winners so long"?
Simple answer is you stop trading your P&L...
Before you enter a trade you should know 3 things:
-What is my plan for the trade?
-Where is my stop?
-Whats my exit strategy?
If you know these 3 things, it becomes a matter of detaching your emotions and letting your thesis play out.
This is why its so incredibly important to have not just a good entry system.. but a GREAT exit strategy.
If you have a real system.. all you have to is follow it and detach your emotions from the trade.
Thats how you hold your winners, you trade the chart in front of you.
To piggy back off a tweet from last weekend but to delve into the psychology and thought process side to answer a question I got -
If any of your current self talk or inner thoughts look like this:
āI canāt believe I missed that moveā
āIām under performingā
āI fucked upā
āI need to size heavier next time to try and make up for my underperformanceā
Dwelling on losing X amount of dollars
Dwelling on selling for a loss to watch it go without you
Dwelling on not selling the exact top when you still did well
You are not alone, your issues are not unique in a way that something is wrong with you, and itās easy to feel this way in current environment
STOP and take a breath
The market will still be here tomorrow and the next week and the week after that, opportunities are abundant
Focus on ABUNDANCE in your life, not lack of
The LAST thing you need to do is size up
You need to do the opposite size DOWN
Buy 2 affordable contracts max to where the P&L moving makes you feel as close to nothing as possible, this gives you the ability to scale, give cushion, and let one contract work to prove to you to trust yourself and your analysis
Focus on your āwhyā, refine your process, move in a way that reflects a logical thought out idea, not on a monetary or percentage based outcome you are chasing from emotion
You need to build confidence in not only yourself but a system. This is why I try so hard to teach and educate because unless you blindly trust someone chasing others alerts will not lead you to a sustainable path
If you buy a push higher intra day with no confidence on the higher time frames or why youāre taking that trade. That move 9/10 times is going to retrace and put you in draw down. A lack of process will let you be shaken out only to watch it move higher
Stocks do not move in a straight line all the time, retracements are normal. You will not make sound logical decisions when you are operating on the emotion that your P&L is making you feel
You are human, you will trip now and then and mess up, progress is rarely linear in any endeavor
Take a step back, you can do this, but you have to walk before you can run. Believe in yourself and put the work in š«¶
When I started swing trading my biggest issue was selling winners too early
I was scared of giving back profits and always wanted to lock in as much money as possible...
I later realized this mentality was costing me millions
Stop trying to look for a reason to SELL, and let your rules dictate when its time to get out.
The point of swing trading is to let the markets work
My new rules allowed me to make 320k+ on $MU in the last 2 weeks
No reason to sell the full position as long as price is above the Daily EMA's
Sell rules are just as important as buy rules.
This is the DAILY timeframeā¦
Why are you aggressively buying every 1m green candle while higher timeframe sellers are clearly defending the open?
This is where traders get cooked.
The lower timeframe is supposed to refine the higher timeframe story ā not fight it.
A bullish 3m candle means very little if the daily is rejecting higher prices and trapping buyers above key levels.
That doesnāt mean longs are impossible.
It means:
- they require more confirmation
- smaller expectations
- faster management
The daily chart is the wave.
The lower timeframe is just the tide.
Most traders lose because they zoom in too much and forget who actually controls the auction. š¦
The secret to sniper entries that actually print:
Break of Structure (BOS)
When price violently breaks a recent swing high or low with conviction? Thatās your green light.
Enter smart.
Stop below the broken structure.
Let winners run.
This single concept leveled up my trading overnight.
Youāll NEVER have another red day
If you do this:
1. Put your stop loss at a point that tells you your trade idea is wrong.
2. If youāre stopped out let that be a sign the market is reversing. You lost the trade or at least broke even, but now the market is going in the opposite direction.
Whatās next?
3. Trade in the other direction to make your money back.
When your original stop loss placement is hit use that information as a sign youāre trading in the wrong direction.
Trade the market not your bias.
Follow @zeustrades for more actionable tips.
people sleep on how often $SPY makes $0.30ā$0.50 moves.
not in a week.
not in a day.
in a single 5-minute.
this happens constantly.
especially at whole dollar levels where price tends to pause, react, and move.
and here's why that matters for 0DTE:
that $0.30ā$0.50 move on a 1-strike OTM option = +15ā25% gain.
in 1ā5 minutes.
before theta has time to do anything meaningful.
now here's the truth about bigger moves:
$SPY absolutely moves $1, $2, $3+ in a single session. all the time.
but here's the problem:
you don't know at minute 2 whether you're in the start of a $3 flush...
or a $0.50 bounce that's about to reverse.
nobody does.
the first $0.30ā$0.50 reaction off a level is the ONLY part of the move that's predictable.
it's the initial impulse.
the first rejection.
the moment the level proves it's real.
everything after that is an extension you can't reliably call.
and while you're waiting to find out...
theta is eating your premium every single minute.
so i don't wait.
i take the predictable part.
i leave the unpredictable part to someone else.
1ā5 minutes. 15 max.
+15% and out.
the move you can predict is the move you should capture.
that's it.
rules:
⢠first reaction at level = the trade
⢠$0.30ā$0.50 = +15ā30% on 0DTE
⢠1ā5 min hold. 15 max. theta changes the math after that.
This is my ultimate starter pack for swing trading:
Indicators:
-8/21/50 Exponential moving averages
-Volume
Setups:
-Tight consolidation spots(Wedge, Flag, Pennant)
-Big bases
-Stage 2
Scanning:
-Top down approach (Start with market trend)
-Find the strongest sectors
-Themes/reasons for sectors to go up
-Scan for leading stock in theme (Volume, RS, Base)
Entry:
-Find big daily key levels (Resistance, Support, moving averages)
-Buy relative strength on weakness
-Buy breakouts on the strongest stocks
-Use the lower timeframe to enter
Exit:
-Stop loss at low of day
-Scaling strategy (Never sell the full position)
-Trim into strength and move stop to even
-Use moving average to trail
My entire system comes down to these 5 things.
This $SPY 0ā1DTE strategy is all you need:
Previous Day High/Low + 15 min ORB
Simple. Repeatable. High probability.
Hereās exactly how I trade it š§µš
My entire entry strategy comes down to 4 steps
I use a top down approach:
-Find the best themes
-Leading stock above moving averages
-Pullback to key EMA's & tighten in high flag
-Buy relative strength on weakness
Keep it simple...
If you stick to an actual entry strategy, instead of randomly buying every shiny object you see
You will have much better results, try it out.
It tickles me when traders say, āAsia trash bro.ā
I get it.
If you try to trade Asia like NY, it will feel slow and frustrating.
But Asia has its own personality.
It builds ranges.
It sets traps.
It rewards patience.
You can literally play one level every single day in this session and get paid.
The problem isnāt Asiaā¦
itās expectations.
I get people looking for new setups all the time⦠WHY???
I just told you in my last few post about the 8 period EMA⦠even a simple 8 period moving average will do the same thing.
People get so sucked into the Bull-Shit of order flow looking for answers.
The answer is right in front of your face, follow the 8 EMA. It never misses any major moves during the trading session.
Follow its direction⦠How hard is that ???
Did anybody test it? Did anybody go back and look at it on a 1-minute chart ???
No, because you think the market is more complicated. Go back and look at your losing trades which side of the 8 EMA were you on ???
It never misses any major moves and further more it catches GREAT moves.
Now, does it have losing trades ? YES.
You might have 6, 7 or even 8 losses in a row⦠who gives a shit ?
If you have a well funded account:
$5,000 for Micros
$20,000 for E-minis
What do you care if you have 8 losses in a row? Test it using 20 tick stops or even 49 tick stops.
Most of you are trying to avoid losing trades and this is what kills your trading.
OrderFlow is nothing more than a justification for your trades. It provides answers to your losses. It doesnāt help you trade better, but all the assholes selling will have you believe otherwise.
Go with the FLOW. If your placing trades against the 8 EMA youāre going to be the long term loser.
I have a new trader that came into the trading room 10 weeks ago and is consistently profitable 3 weeks after joining the room.
How ??? Because he threw out all the bullshit and listened to the 8 EMA and never trades against it.
Does he win on every trade⦠NO. He takes losing trades every day⦠but he sticks to the plan and trades for his daily NUT or target. šÆ
If you want perfection, keep using OrderFlow maybe youāll find it, but for fucks sakes⦠Great traders are not perfectionists, they want profits and to trade well.
If your trading is not profitable, itās probably because youāre a perfectionist.
Follow price⦠donāt try to predict it. This is hard for many traders because of their timing and entries suck.
If youāre using an 8 EMA⦠look at where you enter the trade. If the 8 EMA is too far away from moving average what happens to the trade? The trade pulls back and you get stopped out. You want to get in as close to 8 EMA as possible.
The most important part of using a moving average is the slope of the moving average.
Most traders are right about the direction but their fills suck because they are late. Donāt look for multiple confirmations.
Look at the structure of the trade. Is it making higher highs with higher lows⦠then look to buy it close to the 8 EMA. Conversely, if the market is making lower lows with lower highs then look to sell it.
If you canāt see the structure, donāt trade the market itās probably stuck in a range and will chop you all to shit⦠so just wait.
If you look at FLIPS when the 8 EMA changes direction you can see the market in a totally different way.
Go back and look at your trades⦠how many trades are in the opposite direction of the 8 EMA??? This will show you how youāre on the wrong side of the market.
Will this work on every trade⦠NO.
Does it ever miss a large move⦠NO.
I tell people Iām a 33% trader. This means for every trade Iām wrong 66% of the time but I donāt give a shit because I know the NASDAQ will have 350 tick swing in the next 6,7 or 8 swings and that is my money trade.
People are so focused on being RIGHT that they forget what their objective is and that is to make money.
FUCK TRYING TO BE RIGHT⦠have an account size that allows you to be wrong on 6,7 or 8 trades⦠itās going to happen.
Iāve seen some extreme cases of 10 losing trades. That means if using 20 tick stops in the NASDAQ I need to make 280 ticks in order to make a profitable day. You will see 2 or 3 (350 tick swings) in the NASDAQ everyday by 11:30am
Most traders are not prepared for this and this exactly why they get stabbed in the back everyday, every week and every year.
Losses happen people⦠get it through your head. Markets canāt be predicted, but they can be followed and thatās where your edge is for trading profitable.
Do you even know what your assignment is when the market opens?
Because most traders donāt.
And that is the main reason they are consistently unprofitable.
Have a plan each morning!
Know what is actually achievable.
Know what is realistic and what is not.
Know when you have accomplished your assignment for the day so you know when to be satisfied!
Iāve taken thousands of trades. The ones that paid the most all had one thing in common:
I didnāt feel ready.
The entry felt early. The size felt aggressive. My finger hovered over the sell button the entire time.
Your body is wired to avoid uncertainty. Thatās great for survival. Terrible for trading.
The edge lives in the discomfort. If every trader on Twitter sees the same setup and feels good about it⦠the move is done.
This doesnāt mean trade recklessly. It means have a plan, trust the process, and stop confusing fear with a bad setup.
Fear with a plan is execution.
Fear without a plan is gambling.
Know the difference.
Many new traders struggle because they think trading=predicting. My trading never turned a corner until I stopped thinking *at all* where/how price goes. I wait for my setup to present, I react to the trigger, then I manage it level to level. Price will follow what path it wants
Traders forget this:
Entry and exit are twins.
A good trade should work near your entry.
If youāre hoping for price to come back to break-even, the entry was bad.
If it aināt working at entry, itās no good.
Quit fukin around and have some respect for ya bread