Textbook Gap Up Reversal delivers 500%. Did China kill the rally? Trade Ideas for Thu Apr 24
Are you planning your trades? Do you know when not to trade?
Yesterday I shared 3 trade ideas with THT PRO members at the open. Check the recap for the trades. Overall all 3 were great ideas imho.
The best part, my core gap reversal trading strategy nailed it again! It has a crazy high win rate over 80%! If all you do is focus and scale this one strategy and wait for the situtation to develop you can be a very successful trader. That challenge you have to master is waiting!
Overnight Action
China more or less said no progress on tariff issues.
NOW and IBM reported strong earnings with NOW gapping up and IBM gapping down.
SPY was gapping down a little and broke yesterday lows but has since recovered to flat.
The overnight action could imply a retest of 540s is coming again but will need to see reaction to job less claims and price action during first hour to get a feel.
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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 23
GOLD BOLD ITALIC = price action signal
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
Short SPY 543.35 (but there was a bug is the auto stop selection it should have been 545) target 533 and 537
SPX 5400p I alerted entry at $8, got stopped, then chased back in at 10 and 15. Locked 50% at 30 to make it free, and last exits at 50. I was targeting 55-60, but didn’t like the way it was moving and got out!
Notice how the big money pay out came after 10:30-11:00am. No need to rush the opening action!
Long SPY 533.70
This was annoying. I was off by 0.50 on my levels. and missed the long entry waiting for that 533.70 and it moved so fast I didn’t want to chase.
Short META 534
I occasionally alert swings, and on Tuesday I alerted 500c on META. We got a lucky hug gap up and exits at $33+
With that I gave it a chance to run past my 534 short entry idea. but we got a doublt top and fail and my runners got stopped. Unfortunately I didn’t get a pop to fill META 520p at a price I wanted after. I placed an order at $4 and it only dipped to 4.50 and reached $11.
Perfect targeting for the short idea!
Remember I want to trade 2 hours or less each day. So at this point I was mostly done, but came back in the afternoon in hopes of a big pay day play. Turned into a pain in the ass chop fest instead with multiple 50-100% payouts but you had to execute perfectly and often. Not how I want to trade at all!
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.
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/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 Thu Apr 24
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
Mixed action overnight. Don’t have a strong read on what comes next. For now, I’m thinking we will get an opening rally, but then need to see if it sustains or not.
Today I’m watching…