CT @stcscth - Twitter Profile

I feel like this correction and period in the market is getting to people a lot more than prior ones. Mentally and from a capital preservation standpoint as well. If you fall into this camp and have 1. Traded more than you wish you did 2. In a drawdown more than you ideally wanted to be 3. Broke trading rules you had promised yourself you would follow 4. Overwhelming concern and emotion about making money back. 5. Overwhelming concern to predict and discover what will occur NEXT in the market. 6. Constant need to be right, win, perform despite the need for patience and discipline. 7. A strong desire to improve your mentality, system, process of participation or discipline Then I encourage you to take a minimum of 3 days away from the market fully. I encourage you to take the time to write out rules of trading. And by rules I don't mean the bullshit rules that you see some foolish furus "Only take A+ Trades", or "Trade without a bias". Those aren't rules. Those are phrases people say to Jerk themselves off. What I mean is, specific rules that determine conditions and parameters for the 4 things we control in the market and our market participation. 1. What you buy. Your stock selection. What determines whether a stock deserves to be on your watchlist, focus list, or broader list. What specific criteria. List 10 examples that encourage action and process. 2. When you buy. Your entry criteria. What takes a stock from watchlist to ready to executed order and in your account. Again, be specific, list 10 examples of what your setup should be. an be thesis/fundamental as well. In fact should have both layers, and other layers as well. 3. How much you buy. Position sizing. You can buy 1 share, or you can buy 100. Some of you folks can even buy 1000 shares. What is your specific criteria for when you buy 1, 100, or 1000. When do you size down from your standard sizing. When, if ever, do you size up. What guardrails and systems do you have in place to guarantee this stays consistent and honored. 4a. When you sell. What is your stop loss. Will you define it at or prior to entry. Will you honor it. Will you sell it at your stop. What will you put in place to ensure your stop will be executed if the trade goes against you. What invalidates the trade in order for that stop location to be reasonable. Is it LOD. Is it a specific level. Is it a specific percent. Is it tiered stops. Be specific. Give 10 examples. 4b. When you sell. How do you hold winners. What is your profit taking criteria and sell rules for a winner. Do you trim into strength. When, where, why, and how much. Be specific. Give 20 examples. I encourage folks to go through this process of answering these questions and ENJOY IT! Enjoy the exercise of building them out with definitions and examples. The process of doing it is therapeutic and beneficial. And if you want mentorship and to trade with a very honorable, helpful, and education based group of traders, then join and begin your journey of market participation with consistency at https://t.co/e3lML8R9Du Have a great evening folks, enjoy your weekend, and drink more water! And if anyone wants to reach out and chat my dms are always open! -Patrick

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