Will SPY clear 550 today? Trade Ideas for Fri Apr 25
Are you planning your trades? Do you know when not to trade?
Another solid trading day yesterday I alerted longs on SPX 5420c and 5480c more or less out of the gate.
The 5420c ran to 65 from 12
The 5480c ran to 16 from 3.5
Yesterday I also gave the idea that NOW could run 920+. Where did it run to? Exactly to my 940 level! my levels are magic!
Mission Accomplished. There wasn’t much todo beyond that.
Lately after lunch until 3 to 3:30 has been a chopfest, so I’ll be avoiding that timeframe until proven otherwise.
Stop being a hobbyist and invest in becoming a focused disciplined trader with a trade to win mindset with us.
Overnight Action
After GOOGL’s earnings that market was gapping up nicely.
SPY double topped near 551 overnight and is now gaping down a little. I’m not seeing a headline for the weakness.
META gapping up in sympathy to GOOGL
Read on to the ideas section for what I’m planning today.
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 Thu Apr 24
GOLD BOLD ITALIC = price action signal
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
We basically got long at the open and added on 538 cross. At that point it was wait for the levels above to take profit. Noting else to do.
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 Fri Apr 25
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
When I went to bad last night, I was thinking we would get a gap up reversal setup. Not it could be a bit more difficult. Ideally we get a weak open followed by a rally. The question is, will it hold and/or will today turn into profit taking ahead of the weekend.
Here is what I’m watching today. Remember my process is super symbol we look for range breaks or reversals and target 2+ level moves.