Trading

Trading

1. Psychology

   • Psychology
     • Fear of Failure
       • Psychotherapy
       • Perseverence
         • Experience
     • Mindfulness
       • Meditation
         • 15 Minute Sessions x1-2
       • Logging Trades
     • Stress
       • Exercise
         • Cardio
           • 20 Min. Light Jog Daily
         • Strength Training
           • SS/JOHW
       • Proper Sleep
         • 10PM-6AM

2. Money Management

   • Fixed Fractional Betting
     • 0.5-1% Risk per trade
   • Back/Forward Testing
     • Monte Carlo Simulations
     • Keeping Good Logs
     • Simulation
   • Exiting Losers Early
     • When it violates plan by showing signs of other setups than intended
   • Entry
     • After previous bar close
       • At previous bar POC
       • In Stacked Imbalance
       • Worst Case Scenario: Market Order
         • If and Only If Market Accelerates
         • Smaller Position to account for poor entry

3. Methodology

   • Market Auction Theory
     • Volume Profiling
       • Opening Types
         • Open Drive
           • Aggressive One Directional Trading. Often Out-of-Range
             • Initiative Buying/Selling: Continuing Out-of-Range
             • Responsive Buying/Selling: Back into Prior Value Area
         • Open Test Drive
           • Like Open Drive but Lacks Initial Confidence
             • Usually tests a key area before the other side steps in.
         • Open Rejection Reverse
           • Responsive Buying/Selling
             • Market trades prior direction before being met with fierce opposition and trades back into opening range.
         • Open Auction
           • In-Range
             • Balanced Choppy Open
           • Out-of-Range
             • High Probability of Crazy Swings Both Ways
       • Profile Shape
         • Kurtosis
           • Balance/Trade Faciliation
         • Double Distribution
           • Minor Trend Day
             • Note which distribution has the most volume.
         • Triple Distribution
           • Trend Day
         • Elongated
           • Ultra-Trend Day. No Value
         • Truncated
           • Extreme Balance/Trade Facilitation
             • Pent-Up Energy Ready to be Released
         • P-Shaped
           • Bullish Continuation Volume/Bearish Trend Dying
         • b-Shaped
           • Bullish Trend Dying/Bearish Continuation Volume
       • "What is the market trying to do and how good of a job is it doing that?
         • Key Level Analysis
           • MCPOC/LVN/HVN
           • NPOC
         • Stat Analysis
           • ONHI/LO Stat
           • IB Stat
           • YPOC/YVAL/YVAH Stat
           • Previous OHLC Stat
           • OSHI/LO Stat
     • Order Flow
       • Footprint Chart
         • Continuation Setup
           • Enter on Pullback
             • Look for absorption on pullbacks
               • Ratio Bounds Low
                 • Large Print
               • Trapped Traders
                 • Short Imbalance extremes during pullback for Long
                 • Long Imbalance extremes during pullback for Shorts
             • Look for stacked imbalances
             • Lack of countertrend volume
               • Ratio Bounds High
                 • Single Print
                 • Small Print
             • Cum. Delta in same direction
               • Strong Delta for the bar
         • Reversal Setup
           • Wait for Lower High / Higher Low
             • Cum. Delta Divergence
             • Delta Divergence for Bar
             • Stacked Countertrend Imbalance
             • Absorption
               • Ratio Bounds Low
                 • Large Print
             • Lack of Continued Interest
               • Ratio Bounds High
                 • Single Print
                 • Small Print
         • Range Setup
           • Fade Extremes
             • Flat Cum. Delta
             • Side-by-Side POC
             • Lack of Interest in Extremes
               • Single Prints
               • Small Prints
             • Aggressive Buying at Bottoms / Selling at Tops
       • Book Map
         • Continuation Setup
           • Enter on Pullback
             • Stacked Orders Providing Sup/Res
               • Collision into Stacked Level
                 • Fails to Breakthrough Support (Long)/Resistance (Short
             • Entering Previous Zipper
               • Collision into Stacked Level
                 • Breakthrough Resistance (Long)/Support (Short)
         • Reversal Setup
           • Wait for Lower High / Higher Low
             • Creating Zipper Near New High/Low
               • By itself, not indicative of much. Just a warning sign.
             • Stacked Order Going against Trend
               • Failed Collission
         • Range Setup
           • Fade Extremes
             • Stacked Orders on Both Sides