Showing up every single day is an immensely more powerful tool than any “magical” trading system. When we started this website, some dude said he wanted actionable advice. That question made me know that he was way off track and unlikely to work hard. But actionable advice – I’ve been doing that since day one. Actionable advice – our own actionable advice, that is what trading is for each of us.
Hard work and observation and preparation, leads to experience and intuition and high trade success rates – there is your magic. I know how important showing up is, and I have always done that. Observation (consistency) is a component of showing up. Below are several comments/observations to a friend from 2/23 and 2/26. These had direct actionable advice, as my friend literally used the actionable advice in real-time trading. Some of this was discussed in our conference call over the weekend. And some in Monday’s trading. Also, actionable advice can also mean NOT doing something.
Our MYSZ discussion centered around my belief Friday of a 123 top, and any rallies are SCALPS only – the trend was now down – actionable advice?
And you can see the original chart:
And the result – actionable advice?
And those comments led to my premarket comment yesterday about NXTD. “NXTD reminds me of MYSZ” – meaning the big rally led to a big top – actionable advice?
And this stuff led me to ZSAN, it was the #1 stock yesterday and I was observing it, tried to trade it early, missed it, saw the 123 top, and knew it needed a big selloff to even consider a long-side attempt. But, actionable advice, I knew it was a reasonable opportunity, but not great. Worth a shot, as I believed it had a parameter up to 8.85, a 10+% trade. So it broke 8.40, I still waited, took my shot, bad fill, a good fill likely would have exited some, but ended up with a small loss. And the important thing – I knew my time-frame, short leash – actionable advice?
Lastly, the SPY had a specific type of trading action yesterday. It had absorption into the close Friday (plus), it gapped up and reaccumulated, and went to a higher high (plus, plus) – it was a “runner stock”. Hence I made this comment late in the day – actionable advice?
All of the previous observation led me to that comment. I had seen it over and over, especially with the indexes, the quick late day selloff and the rally into the close, pure option daytrade.
It was strong all day. That comment about the rally into the close, the probability of that trade setup – over 90%. I missed a call option trade it appears by 2 ticks. I was dealing with ZSAN at the time. The SPY played out exactly as I observed and commented, the setup was there. Those options rallied 15% into the close.