Is the rally finally exhausted? Trade Ideas for Mon May 5
Are you planning trades that pay over 300%?
On Friday I made a plan to wait until after 10:30 or 11 and it paid off.
I planned a trade with $1 of risk, following process and it return 6-8R.
I also took puts at the same time.
I lost $1 on the puts but quickly made $6-8 on the calls. Good enough for the day after a night out celebrating Thursday’s victories.
What Thursday victories? The kind that delivered over 300% and 1000% in the last 15 minutes.
Not bad for waiting (napping 2 hours) and then seeing the opportunity and getting paid in 15 minutes.
…. Let’s keep the momentum going! I’m super excited about this week. I’m quietly expecting this week to possibly give me one of my biggest payouts. Let’s see if it develops. The important thing is to keep executing process. Day in/ Day out.
Stop being a hobbyist and invest in becoming a focused disciplined trader with a trade to win mindset with us.
Overnight Action
SPY started fading over night as Trump announced more tariffs. This time on the film inducting trigger a big drop in NFLX
SPY - gapped down to 564 and is testing 562 from a close at 566.76
NFLX - gapped down to 1080 from close at 1156.
/BTC - pushed to 98k and retreated to 94k
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 Fri May 2
GOLD BOLD ITALIC = price action signal
SOFT YELLOW = thinking/anticipation
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
Given the gap up and extended run I was watching for a fail, but I couldn’t ignored the vwap bounce. So my plan was to short previous resistance as well as go long and let market pay me one way or another.
The plan worked perfectly. Lost $1 on one side and made $6 on the other side. $5 net gain with $1 risk. Well realy $2 if market went no where, but that was an unlikely out come and even then we are looking at 2.5R.
Guys that is more or less what this business is all about. Defining Risk/Reward, placing smart bets, and letting it pay you or not.
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. My birthday is coming in May - I hope to release this before then.
If you are busy and want to see my commentary and ideas in real time consider joining THT-PRO.
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 or failed breakdown reversal at key level
Join at VWAP mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
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 Mon May 5
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
Getting a gap down. ideally we get some BTFD on the open fills some of the gap and then get short. Not expecting too much range until tomorrow or Wednesday after FOMC.