How I Day Trade - 9/17/10

Why My System?

1. Trade with the Trend - gaps
   
2. Fastest Racehorse: B/B, am r/a
3. Momentum: -25% p/back, closes below 5ema
4. Pullback - Pause
   
5. Narrowing Bars (consolidation before expansion)
   
6. Flag (+2IB)
7. Doji/Hammer (TB w/tails)
8. NR7 (IB) = low risk, max R/R

A Grade - Screaming Buy - Obvious!

1. -25% (not deep)
2. OR - Strong/Weak
3. Bull/Bear p/back (tails greater than wicks)
4. @ 5-EMA (will p/back)
5. PB tail
   
6. TB 1st R/G bar

B Grade - Not Screaming Buy

1. Iffy B/B p/back, sloppy set-up, wide IB
2. TB not 1st R/G bar
3. Not Obvious buy
   

WL Screen

1. Gaps
2. Am r/a = OR b/o
   
3. OR h/l violation
   
4. 5-EMA violation (close)
   
5. -$1.20R
6. Sloppy base - hard to read, not obvious
   
7. 1st R/G TB, if not, late to the party
8. Tag Fib
9. Volatile: B/A spread +$.03
   

Psychology

1. Low Stress Trading
2. Screaming Buy
   
3. Immediate profits
4. When in doubt stay out (save powder)
5. Stalk, no compulsive entries
6. Show up top bat every day
7. Keep screening till 11.00am
8. Patience to wait for "OBVIOUS" set-up
9. Discipline - take the trade!
10. Let the mkt prove me wrong (auto exits)
11. Confidence - a marathon, not sprint