Creating rules to prevent rare occurrences of red trading days and setting key support and resistance levels on higher time frames provide guidance for micro-scalping strategies.
Considering the big picture by looking at higher time frame charts helps identify breakout days and potential strong moves, allowing for better insights into the potential strength or weakness of a stock and adjustment of trading approach accordingly.
Deep dives
Creating Rules to Prevent Rare Red Days
The trader discusses the importance of creating rules to prevent rare occurrences of red trading days. They emphasize the need to have a daily stop in place and mention the flexibility of determining the max loss based on weekly performance. The trader also highlights the significance of considering the big picture by looking at higher time frame charts to identify breakout days and potential strong moves. They stress the need to set key support and resistance levels on the higher time frames to provide guidance for micro-scalping strategies.
Recognizing the Strengths and Weaknesses of Scalping
The trader acknowledges their strength in trading choppy conditions but admits to struggling when faced with one-directional moves. They express the desire to become more proficient in identifying when a stock is likely to go green or red. The podcast host suggests looking at the big picture, referring to higher time frame charts like the daily, 4-hour, and 1-hour, to determine the overall trend and identify key support and resistance levels. By having a broader perspective, the trader can gain better insights into the potential strength or weakness of a stock and adjust their trading approach accordingly.
The Importance of Taking Time Off and Setting a Max Daily Loss
The trader discusses the significance of taking time off after experiencing big losses to reset psychologically. They mention the temptation to return to trading quickly out of frustration but express the need to mitigate big red days. Setting a max daily loss helps prevent further losses and allows for reflection and adjustment. The podcast host shares their personal rules, including a max loss limit and a break rule to prevent revenge trading. They emphasize the importance of finding a balance between flexibility and having guidelines in place to maintain trading consistency and profitability.
Understanding the Value of the Big Picture on Trading
The trader acknowledges the importance of considering the big picture before executing trades. They describe how drawing key levels on higher time frame charts, such as the daily and 4-hour, can provide guidance and prevent trading against the overall trend. The podcast host emphasizes the need to be aware of breakout days and their potential for strong moves, as well as highlighting the role of volume in confirming breakout moves. Taking the big picture into account can help the trader make more informed trading decisions and avoid potential losses or choppy trades.
Milad is a hard-working, current full-time Google employee and trader. Over the past year, Milad has taken nearly every course known to traders. He has dedicated the past year to growing his journey through the help of mentors and training. He loves the act of trading and envisions himself quickly approaching the seven-figure mark. Like many, Milad has found himself in the up and downs of trading. Enduring the red days is detrimental to your success. We dive into Milad's process and analyze his techniques and plans for moving forward. Listen to this one-on-one session and sign up for your own!
