Quote of the Week

A loss never bothers me after I take it. I forget it overnight. But being wrong, not taking the loss, that is what does damage to the pocketbook and to the soul.

- Jesse Livermore

Gap 123 Fade short - EL

5 minute chart

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Stock:EL

Entry Bar: 4
Time Frame: 5 minute
Entry Green Line: 44.02 short
Stop Red Line: 44.45
Result: .16 to .49
Setup Grade: B
Notes: Huge gap up and it ran, red bar set up a short for a small winner. Sold off the rest of the day.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

30 Minute Outside Range Breakout - LNC

5 minute chart

Daily Chart

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Stock:LNC

Entry Bar: 21
Time Frame: 5 minute chart
Entry Green Line: 24.87
Stop Red Line: 24.69
Result:
Setup Grade: A-
Notes: scanning my 30 minute charts and fell into this one. Nice setup as the daily chart was screaming for a rebound.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

30 Minute Inside Bar - ASH

30 minute chart

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Stock:ASH

Entry Bar: 3
Time Frame: 30 minute time frame
Entry Green Line: 35.40 SHORT
Stop Red Line: 36.48 or to hold all day 38.40
Result: up to a 2.00
Setup Grade: B
Notes: I often get asked what time frames I concentrate on. I mainly focus on the first 30 minutes of the trading day and then scan for 30 minute charts after I recorded my results. I like 30 minute has they are a nice change of pace to just check setups every 30 minutes or so. I also at times place a trade, set my stop (usually the high or Low of the day with adjustment of shares), and then set an alert to sell at the end of the day if I do not feel like tracking the stock all day.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

World Series - Go Phillies

What a great clip from the movie a For Love of the Game. This is what the Phillies are going to do to the Yankees in this series, shock them in their stadium. This is Cliff Lee playing Kevin Costner. The movie is about an aging star playing his last game who now depends more on his will then his ability.

When I was a kid I always dreamt of the Phillies playing the Yankees in the world series. Today I feel like that kid again.


And for you Phillie Fans, here is a scene from Goodfellas with the call from game 4 of the NLCS. I was at this game and thought the building was going to fall down on this hit by Rollins.

Day Trading Business Plan Updated

My Day Trading Business Plan has been updated.

Some of the Updates Include:
- Added charts and examples
- How I use lower time frames to time entry with higher time frames.
- One Minute Charts, setups and examples

Thanks to reader Paul for helping me sort out some of my past grammar errors! For those whom have purchased the day trading business plan in the past shoot me an email and I will send you an updated copy.

Be sure to join How I Day Trade on Facebook. Will also be posting charts and trades.

the following is a clip from the movie the Legend of Bagger Vance called "Seeing the Field". The scene relates to day trading and life. The moral of the clip is that you can have all the tools in the world but its the discipline, desire and the focus that drives the succeed.

Pay special attention to Bobbie Jones as he blocks out everything around him as he attempts his shot. This is much like day trading you get into a zone. This comes from the practice of knowing what you are looking for and the focus to achieve it. Focusing on the trade, not the money or your surroundings. In life I call it ignoring the bullshit and petty things and focusing on your goal.

Wedge Short - COG

5 minute chart

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Stock:COG

Entry Bar: 5
Time Frame: 5 minute chart
Entry Green Line: 42.09 SHORT
Stop Red Line: 42.35
Result: .50 to .90
Setup Grade: B
Notes: Monster Gap up, placed stop at high of the consolidation. Scale as you go and move that stop up to even. My updated business plan is now available. Will post about it a little later today.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and GO - RVBD

5 minute chart

Daily Chart

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Stock:RVBD

Entry Bar: 2
Time Frame: 5 minute
Entry Green Line: 22.11
Stop Red Line: 21.83
Result: .54 to .76
Setup Grade: A-
Notes: I was in AMZN and just missed entering on this trade. The power of short covering to really push a stock. RVBD gapped up and almost engulfed the previous days bar sending the shorts to cover.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

BRCM - Stopped and then Gainer

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Stock:BRCM

Entry Bar: 2
Time Frame: 5 minute
Entry Green Line: Long: 28.81.....Short 28.41
Stop Red Line: Long: 28.61.........Short 28.91
Result: Long - Stopped out......Short .13 to .36
Setup Grade: B+
Notes: Huge Gap down, went long on the first candle and had my head ripped off as I was stopped. Whenever a green wide range bar is taken out on the next candle I may go the other way. Here it set up nicely as that red bar totally engulfed the green bar.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and Go - MS

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Stock:MS

Entry Bar:
Time Frame:5
Entry Green Line: 34.08
Stop Red Line: 33.58
Result: .45 to .78
Setup Grade: B+
Notes: Nice setup, scale hold some all day.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

One minute Fade - CAT

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Stock:CAT

Entry Bar: 7
Time Frame: 1 minute chart
Entry Green Line: 60.74 SHORT
Stop Red Line: 61.28
Result: scale as you go
Setup Grade:
Notes: See previous day breakout on Daily chart, Gapping way up, now looking for a fade with the stock short term overextended. This is using one minute charts. I really hope to have my business plan updated by the end of the month with how I utilize one minute charts. Just so busy especially with the Phillies in the playoffs. Was at last nights game, what an awesome ending, I thought the entire building was going to collapse.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and GO - CAT

5 minute

Daily

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Stock: CAT

Entry Bar: 2
Time Frame: 5 minute
Entry Green Line: 55.00
Stop Red Line: 54.85
Result: .30 to .48 or more
Setup Grade: A-
Notes: Breaking on the daily, scale out, stop to even, hold some all day.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

One minute Fade - MAT

Daily Chart

One Minute Chart

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Stock:MAT

Entry Bar: 4
Time Frame: one minute chart
Entry Green Line: 20.70 short
Stop Red Line: 20.92
Result: .00 to .41
Setup Grade:
Notes: Daily extended, looking for signal to fade the opening gap. 3rd bar got a nice tail signal, scaled out, stop to even, then taken out. Great example of why you need to be quick on the trigger and know your rules. If not could have turned into a quick loser.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap Fade Long Stopped - COF

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Stock:COF

Entry Bar: 2
Time Frame: 5 minute
Entry Green Line: 37.85
Stop Red Line: 37.56
Result: stopped out -.29
Setup Grade: B
Notes: Here is a great example of jumping in way to early and getting burned. Instead of waiting for the high of the previous bar to break I jumped in early at the top and it reversed quickly. Tried to jump the gun and got burned.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap Fade Short - LOGI

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Stock:LOGI

Entry Bar:2
Time Frame: 5 minute
Entry Green Line:18.81 short
Stop Red Line: 19.08
Result: .32 to .40
Setup Grade: B+
Notes: Huge gap up for the overall market. This fit the criteria to short. Nice candle. Scale as you go.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

The Blind Side - Movie

I enjoy inspirational movies, especially true stories. Currently reading an awesome book, The Ultimate Book of Sports Movies.

Here is one that surely will be added. Its called The Blind Side. A true story about overcoming adversity and giving back.

If you ever make it in this business, or achieve any goal in your life, never forget how you got there or what it took to achieve you goal. Be sure you never forget by giving back. This is what this well off family did. I bet with all their wealth and possessions they own, what they did for that young man was by far the greatest treasure they will value.

Good things happen to those they give. Will be quite busy the next few days, will post on Wednesday. Have a great week.

Due out in few weeks. I added both trailers.

Trailer 1


Trailer 2

Rocket - COH

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Stock:COH

Entry Bar: 8
Time Frame: 5 minute
Entry Green Line: 34.57 short
Stop Red Line: 34.65
Result: .20 to .33
Setup Grade: B
Notes: Nice risk reward, showed up on my scanner after a nice run up, not a perfect setup for the Rocket play but nice candle to enter off of with little risk.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap 123 fade Short - EBAY

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Stock:EBAY

Entry Bar: 4
Time Frame: 5 minute
Entry Green Line: 25.06 Short
Stop Red Line: 25.15
Result: .22 to .31
Setup Grade: B
Notes: Daily extended and 5 minute chart as well. Usually prefer red candle to go short but liked the risk reward.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap Fade Long - LINE

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Stock:LINE

Entry Bar:2
Time Frame: 5
Entry Green Line: 22.21
Stop Red Line: 22.09
Result: .14-.23
Setup Grade: B+
Notes: small gainer, gapped down about 6% at the open

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Too Funny

Got this from a reader, too funny

E-Mini opening fade gap - NQ

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Stock:Emini NQ

Entry Bar: 1 at the open
Time Frame: 1 minute chart
Entry Green Line: 1668.50 Short
Stop Red Line: 1678.50
Result: out.. 1663.25...+5.25 points
Notes: Got out a point in front of gap fill, out early. It popped and then eventually rolled over and filled the entire gap. I took this trade using the data from master the gap site. Took two one minute trades in INFY as well. A loss and a win.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

30 Minute Breakdown - LBTYA

5 minute chart

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Stock: LBTYA

Entry Bar: 6
Entry Green Line: 21.57 short
Stop Red Line: 21.67
Result: .63 to .79
Setup Grade: B+
Notes: Setup very nicely on the 15 minute chart as well.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.