BOOM 521 cleared and 527+ came. Monster overnight gap up! Trade Ideas for Wed Apr 23
Are you planning your trades? Do you know when not to trade?
Yesterday I said I wanted a dip and if 521 cleared we could see 527. We didn’t get the dip I wanted, but we got the rally after 521 cleared and then some! I made a plan using the levels for targeting entries and exits and it went perfectly. It actually went further, but I’m ok with not catching it all because, the planned move already paid over 10R!
What does 10R mean? it means getting paid 10x the risk you took. so imagine risking $1000 and making $10000. Not bad for a couple of hours work right? After that i called it a day. Sure there were more opportunities, but building the muscle to not overtrade is huge plus, After a large move there is often consolidation action and it can sometimes be difficult to plan and execute trades in that chop. So best to avoid it.
Yesterday I shared this plan right after the open.
About 2 hours later I finally got the dip I wanted.
And here is what happened 15 minutes later! I was out most at 18. Good enough and stopped the rest at 15.
More importantly, talk about precision with the levels and the plan!!!! 5310 met!
Why sell at 18? Because of timing and juicing, I could not predict with certainty that 25 would come. Based on the intrinsic value at 5310, theses contracts at most would be worth $10 at and end of day so why take the additional risk? $18 is $3 more than my T3 and that is fantastic bonus.
Notice my mindset - it isn’t how do I make the most of this, it is, how do I systematically collect profits when opportunity comes
The market gap up
Wow I’m a bit surprised with the speed and size of gap up recovery on Trump saying will not see to replace Powell. I honestly don’t see what has changed in terms of tariffs and costs to the consumer. Overall seems light Trump might be back pedaling on tariffs with a China a little giving the market hope.
Remember BABA long idea from yesterday? BABA is 120+ this morning!
SPY is gapping up into 540.
Where do we go from here?…. Read on to the trade ideas section.
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What is Two Hour Trading?
Two Hour Trading is my system for finding and executing trades while spending less than two hours a day trading. My goal is to earn 100-300% on the capital I risk while waiting for 1000%+ gain trades to set up. Key benefits include:
High-quality trades with excellent reward vs. risk
Avoiding overtrading and losses from it
Trading to win vs. trading not to lose
Stacking the deck in your favor
Trade Recap for Tue Apr 22
GOLD BOLD ITALIC = price action signal
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
I was slow to alert SPX 5250c but members grabbed 5270c and 5300c early, the challenge was that the 5300c moved horribly from from 3 to 6-7 before dumping to 2.35 and then running to 25. Congrats to members who scooped early without the alert and by following process!
I had to wait 2 hours for my ideal entry.
GET EXCITED. I’ll be publishing a book called Trading To Win: Stop trading to NOT lose. Title is still in the works. I plan to include exercises to help you improve your mindset and your trading. Leave a comment or send me a message if interested in the book.
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Education - How to Join a Strong Trend
The process I typically follow for joining a strong trend are as follows:
All day grinder: join on dips to 20ma
Multi-day grinder:
Join either on support test of morning lows/failed breakdown reversal
Join at vwap mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
Education - Systematic Profit Taking
How do I take profits? I keep it relatively simple. Depending on the entry and range to the next levels I typically with take profits 50-100% of my profits at 3-10R and then raise stops to above entry with a goal of letting runners take me to the next level or 2 and to then reload if I believe we are consolidating before the next leg.
I then repeat the same process on the reload.
Trade Ideas - Plan for Wed Apr 23
Stick to process. The process and trade setups I teach works. Rinse and repeat over and over again. There will be losses. Any good system will have them. Being systematic also means the gains will repeat and come again too. If you keep changing your system/process trying in an effort to never lose a trade, you will never get to where you want to go.
Ideas
Overnight market is gapping up huge, but I don’t get any sense of euphoria from people, That there is an urgency to buy. So it makes me feel like a lot of this move is being driven by algos and a short squeeze.
So I’ll be looking to see if we fall into gap and go, or pop and drop for some gap fill.
Today I’m watching…