There will be many upcoming posts about my challenge for myself this year – starting with a very very small account, and having to deal with (or maybe not?), the PDT rules. There are ways around it, I’m employing 2 of those ways, but the trade sizes then must be kept extremely small. Doing a small account is something I’ve never done over my trading career, so there has been plenty to learn, and I’m really enjoying the challenge and the experience. All of this was discussed in the conference call recently. The way I’ve set this up and approached this, I am avoiding the PDT rules, small position sizing, but I do a lot of trades. This post, in conjunction with this one, are about 2 BKO trades I did on 3/8. And again. WHAT IS THE TREND, and where are we in that trend.
People, traders, almost across the board, have no idea at all about an extremely important tool in markets – READINESS TO MOVE (RTM), discussed here also. Everything I do, in individual stocks, not in my index option trading, individual stocks – it all surrounds the BREAKOUT. The Pre-bko, the actual bko, and the post-bko when the trend is up – all of these also surround RTM. The shortest amount of time spent in a trade and the biggest potential movement.
Do you PLAN OUT your trades? Probably not. How do I know that? Most people don’t. It never ceases to amaze me the lazy lazy approach MOST people have in trading.
Here is the 60 for SBOT, bko stock, up 80%, I need to buy and/or on a pullback/reset, then re-BKO:
Then I focused on what the next TRADEABLE supp in SBOT will be. First one at 2.28. I need to see that supp BREAK FIRST, then look for where the SPRING could be. I calculated/recognized very well, and put in a bid at 2.27, that was filled. I sold 1/2 at 2.80, up over 20%.
SBOT then reversed, I was busy missed the selloff, got thru original entry. But, I WAITED FOR THE BOUNCE TO SELL, and took the scratch. You may want to ponder that. Most approaches to using stops are not at all thought out honed developed well.