First of all, let me cite a quote from Markus Heitkoetter of Trading Markets.com, “The biggest enemy to your trading success is not the market. It’s YOU. And you are your biggest enemy because of your emotions. A profitable trading strategy is not enough on its own. You must also have the right mindset if you want to be one of the only 11.5% of traders who actually succeed.
In the day trading business, allowing your emotions control you will lead to serious disaster. Therefore, you …

My trading strategy is for guiding me to find the right stocks each day; to conduct proper due diligence analysis, to identify the the tradable stocks which have relatively minimal risk and greater reward; to determine the size of entry position so as to know my maximize potential risk, and to guide my entry and exit points in order to minimize my loss when my initial prediction of stock direction is wrong and to maximize my profit when my initial prediction of stock trend is right.
Take a look at my trading …

MHK is a great stock that I missed today. To be exact, I didn’t missed the stock, but I missed the right entry point. I actually entered the stock twice. The first time was at a fake breakout point, and the second time was at a less favorable point that I was not comfortable to stay for long. Take a look at the pattern first:

The first time I entered the trade, was right after the stock dip under $58 at $57.84. The stock first showed strong momentum to go down, …

Before you enter a stock, be sure to check if it has momentum to move either up or down. Because our trading foundation is based on momentum. Take a look at my mistake today on X.

X was my careless entry today. I entered at 45.06. X showed strong upside in the morning. It went up straight from $44 to $45, and was stopped by the $45 odd number. When I entered, there were two things I failed to analyze:
Firstly,  profit/loss ratio.  Looking down at the potential exit point, it should …

There are two stocks with great patterns today. I did one and missed the other.

WYNN is the one that I entered, a little bit after it broke out its early morning high. The entry time is at 9:55am. I was a bit hesitant because at 10am, there is economic news. However, the momentum was great and the trend was very clear. So I entered. Also, as we can see on the chart, WYNN started the day right above yesterday’s high, and below the day before yesterday’s high. It was supported …

Before I enter into any trade, I should first determine the potential exit point both if the stock fails going my way, and if the stock succeeds in going my way. Take an example of HMSY today:

The entry point should be today’s early morning high which is $60.38.  But before I enter the trade, I should determine where should I get out if the stock fails me. The potential point should be yesterday’s high which is $60.07, that gives me a $.3 loss! But what if the stock going my …

I finished trading today at a little bit over 11:30am (which is my mandatory latest finish time). I did OK, earned $38 after commission.
The good thing is: I didn’t loose money. The bad thing is: I didn’t follow the rule of risk management.
I have to create a mind map and put all my rules for trading in it. Risk management rules are deadly important. They guide me where I should enter a trade, what is my exit strategy, when I should be able to trade other stocks, etc.
I didn’t follow …