Can you answer these questions?
Who are you as a trader?
- What is your trading business?
What do you do best?
At the end of each trading session, you should be archiving a setup that made the most sense to you. Those setups have variables, and you should go back and decode anddeconstruct the variables of that setup (your favorite variables) and put them into your playbook in Playbook Template Form.
First, you want to start with the big picture. Let's make sure that we understand what that is when we're talking about the setup.
Recently the market was hovering above the 50-day moving average and below a major technical level, let's call it 4,200. The market was concerned about the debt ceiling not being resolved. As soon as the resolution progressed, SPY got above the 4,200 level and held. So now it's above major resistance, the 50, 100, and 200 daily moving average. 🚀...the market wants to go higherThat's an example of the big picture. So now you want to turn to your trade idea and ask...
- What are the long-term technical levels of a particular stock?
- Is it at a 52-week high and going higher?
- Is it at a 52-week low and going lower?
- Is it in the middle of a range?
- Where's the next technical support or resistance level?
- What is the intraday chart setup showing us?
- Is it above or below an opening range?
- Do we understand the news catalyst in the particular setup?
- What news is getting people interested in trading this on a given day?
You want to discuss an overall trade strategy for attacking this particular setup. What is your intuition (the direction it ought to move in)? These are questions you want to ask yourself as you build your playbook. So start building your playbook. Start understanding the setups that you can trade really well. Start archiving them. When you write them down, you internalize them in your trading brain.
You can be better tomorrow than you were today.
Your trading coach, Jeremy Fielder