Sunday, March 7, 2010

"Luck is what happens when preparation meets opportunity" - Seneca

or My daily trading plan.

Each morning before market opens I have to do my premarket preparation, map the reference points, the H/L VN, S/R levels, trend lines, the way the VA is moving is there acceptance? is there rejection?
low volume = rejection
high volume = acceptance
  • - think about what happened the previous day, where we had traded, what type of day it was (trend, normal, range), where the action was, where the VA is located compared with the other days
  • - make up the charts with S/R levels, I take this from MP of the weekly & previous day, as well as from areas like HVN & LVN
  • - mark down the VAH, VAL, NPOC, NVPOC & single prints
  • - look at the overnight action (OH, OL), what happened in other markets around the world, what news were out that may affect S/R levels
  • - note what major economical news are to be released for the actual day and how could influence the day
  • - visualize the action that may unfold. (I think this is something hugely important, after I read about it as being used by many successful professional traders as well as top athletes, is something I'll train for and something I'll try to get better at).
It's all a matter of preparation & envisioning. Do the morning preparation, than envision what the market could do by looking at the context. But I have to learn to update that vision as the market progresses. By doing this over and over again, I can achieve a comfort level and confidence to execute my plan without stress. I know that to be able to see this type of vision takes a bit of time and experience.

I don't have to get married with expectations, but it helps to visualize the probabilities ahead of time so I can react.

I have a clear plan for each trading day, trade the plan. It's just a job and all I have to do is my job and try to get good at it.

What the market does outside of my objective, is no interest to me, because I executed my plan and this is what matters.

RELAXED, CALM, COOL & FOCUSED!!!

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