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My trading plan

Stock Selection Criteria

  • Minimum Volume: Stocks should have a minimum opening volume of 300,000 shares to ensure liquidity.
  • Float Size: Preference is given to stocks with a float size under 25 million shares, with smaller floats being more favorable as they can lead to higher volatility and potential gains.
  • Volume per Candle: Ideal volume per candle is around 25,000 shares, though volumes as low as 5,000 shares are acceptable at a higher risk.
  • Spread Limitation: Stocks with a bid-ask spread greater than $0.20 are avoided to reduce costs related to spread.

Position Sizing

  • Adherence to a predefined key-based system is recommended to prevent overexposure by selecting quantities larger than your standard day trading size.

Maximum Loss per Trade and per Share

  • A hard stop is set at a $100 loss per trade and $0.25 loss per share to manage risk and protect capital.

Stop Out Action

  • Immediate execution of a stop-out action is mandated if the maximum loss per trade or per share is reached, to prevent further losses.

Daily Loss Limit

  • A daily loss limit is set at $500. Reaching this limit triggers a halt in trading activities for the day to safeguard against significant capital depletion.

Risk Management

  • The strategy emphasizes the importance of accepting losses without attempting to average down, recognizing that a controlled loss is preferable to escalating a bad trading day into a devastating one.

Trading Hours and Setups

  • Trading is concentrated during the first 1.5 hours of the market opening (9:30 am to 11 am) for day trading and the last hour (4:00 pm to 5:00 pm) for large cap and swing trades, especially around earnings announcements.
  • Trading at the Top: if you will buy at the top then buy half size.
  • Favorite Setups 
  • Special attention is given to “halt setups,” where a stock halted for 10 minutes on an upward trajectory, combined with positive news and volume, is considered a strong buying opportunity.