In honor of Stop Loss September #SLS

I want to share some questions I always ask myself before/during/after trading to make sure I’m at peak self-awareness.

Feel free to share your own in the comments. 👇 Before:

How alert for I feel?
Do I feel sharp enough to make split second decisions?

If yes ✅
If no, either wait until I do, or don’t trade at all.

Do I have a plan?
Do I have targets?
Have I fully accepted the possible risk?
Do I feel any other emotions?

🧵 How to play my Watchlist 🧵

In this thread, I’m going to give an updated summary of how to play my watchlists given different scenarios.

These watchlists work best when you enter as close to the trigger as possible, regardless of the direction you choose. This is because it gives you a very clear framework for your risk before you even enter the trade.

Trigger becomes invalid? Cut for a small loss. We always want to keep our losers smaller than our winners.

$NVDA 📝

168.70 broke today after a breakdown and several retest opportunities. 165 was briefly broken, closing just above. AH closed at 169, but I'll explain my game plan below.

Flow ended up strongly bullish, with 170c & 175c leading the way over 55%.

Flow: @unusual_whales Game Plan:

If $NVDA gaps up, I want to watch 168.70, 167.45, & 166.90. Last line of defense before further drop is 166.90, can be strong support, will look @ 170c on bounce.

If 166.90 breaks down, will wait for a 5m to close below, bounce around and ideally give me a retest...

$TSLA Deep Dive

Based on the weekly, the lines in the sand are:

700: goes to 755, 794
620: goes to 598, 560, or even 502

I find it hard to believe that 620 will crack easily, but if it does, it opens up a major free-fall opportunity to 500. The daily is situated in a pretty strong downtrend, but is getting to the point where it's cornered between the trend and the key 620 level.

The overall market is likely to dictate what happens here. Trendline break + 700 break is a no-brainer long opportunity.

DON’T 🚫

Get too high with the highs, OR

Too low with the lows.

We’ve all been there: Nothing is going your way. As soon as you enter, it’s red. The kiss of death.

Oppositely, an invincible win streak, nothing can stop you. Every trade is green. Your confidence @ ATH.

1/5 Now this is where we enter self-awareness mode. We all know that this game is “You vs. You” - so who is our biggest enemy besides ourself?

Consider the inverse. We can reasonably become our biggest friend. How does one disconnect from the default human emotional responses?

2/5

🚨 ATTENTION 🚨

You are helping a fellow trader with a research project by answering the polls in this thread. If you have a moment, just click a couple buttons! Do you believe a trader's success in the markets is influenced by their psychology?

40k. Wow. Instead of saying why I feel great, I’ll list some people who I wouldn’t have been here without. (In no order, and you know who you are in case I forget.)

I’m a big fan of community. I win, I lose. But the reason I remain on course is because of those around me. Every single one worth a follow: @BullishMont @notmrmanziel @RockyBTrades @showytrades @K1Calls @DBookTrading @SpyGuyTrading @Hugh_Henne @THEICETRADES @madmoney2021 @nowthatisdope @CeeDeezTrades @zigs_trades @AkrinTrades @channingtradeum @JLinWins @SwingPony @NotCoachSmart

1/18 Watchlist Flow🌊

$KHC: Massive increase in call volume, over 30k (1st time since 12/17 which was also a Friday) 12/20 saw a gap back down to support. Bulls targeting 39c, 19k OI sitting at 40c. If there's a dip like 12/20 I like swing adds here.

Data from @unusual_whales $XOM: Finally back to pre-Covid levels. Getting serious volume on calls all the way up to 74c. $XLE has been on an absolute tear. 67 is a very realistic target for $XLE if energy stays strong this week.

WATCHING SECTORS 🔍

If you use @tradingview, hit the 3 dots on the right and "Import List." Copy and paste the text below.

These are all 11 of the Select Sector SPDR ETF's.

AMEX:XLE,AMEX:XLF,AMEX:XLK,AMEX:XLU,AMEX:XLI,AMEX:XLV,AMEX:XLY,AMEX:XLP,AMEX:XLRE,AMEX:XLC,AMEX:XLB Keep these on watch every day. It's very important to watch for sector rotation. These charts will show you what is showing relative strength/weakness across the sectors.

Additionally, this website is an incredible resource.

sectorspdr.com/sectorspdr/too…

🤝 Filling Options Orders 🤝

This thread is intended to be a guide to placing and executing open/close orders on options contracts.

When trading options, you can know every trend and candlestick pattern, but still fail if you're not familiar with getting orders filled properly. Everything contained in this thread will be strategies based on personal trial and error. I've had many errors. Ideally these tips can help you avoid them.

Just like any of my edu content, I would encourage you to take the things stated here, and build your own set of rules.

🏆 TRADE EXECUTION 🏆

You do NOT have to know what's going to happen next in order to make money. We MUST identify our edge, and act on the edge with proper sizing and risk management.

In this thread I will go through multiple different trade situations and how to process them. First and foremost, my RULES (tailor to your liking):

- No more than 10% of account in a trade (usually 5-7%)
- No more than 1 full position at a time
- No averaging down
- HARD stop loss @ -10% (you can always re-add the position)
- I do not hold overnight (100% cash)

🐳 Watchlists + @unusual_whales 🐳

Unusual Whales is an incredible tool that can take anyone's trading to the next level. It presents a ton of data, which can often be hard to synthesize.

This thread will provide a simplistic approach to analyzing and utilizing flow data. 🌊 1. Where To Start

Start with the "Hot Chains & Tickers" page. Not only does this display the tickers with the most option volume, but it also shows the most active chains. Better yet, you can filter by sector and market cap.

Below are some specific filter examples:

🎯 FIND YOUR OWN OPTIONS PLAYS 🎯
🔥 A day-trading preparation guide 🔥

1. Selecting Stocks
2. Identify Key Levels #LevelsDontLie
3. Strikes
4. Assessing Premiums

These four steps should set options traders up for self-sustainable success. 📈 1. Selecting Stocks

The first question I always ask: "Are other people trading this ticker?" Volume is crucial for options. If the underlying stock is not moving, or is very choppy, how can you expect the options to perform well?

A thread of my threads: How to play mine and other traders’ trigger watchlists.

https://twitter.com/AdamSliverTrade/status/1447268313059430407

🎲 How to play trigger watchlists 🎲

1. How/When to enter:

This is NOT an exact science, there is no way to avoid fakeouts. These are KEY levels, and for that reason, provide strong moves. However, they can be hard to break due to their significance. You must manage risk. There are two strategies I follow.
a) Conservative: Wait for a 5 minute candle to close through the trigger level. Ex: if an $AMD put trigger is under 100 and 5 minute candle closes at 10:45AM at 99.85, take the position.

📈How to use FinTwit to your advantage📈

There’s a lot of people that post great content on here. So I’d like to share some of the best, and how you can use their strategies to add to your own playbook. ✅ @ThetaWarrior: Gives weekly focus lists, lotto Friday watchlists, and helpful options info constantly.

I use TW for confirmation when I make watchlists to make sure I’m seeing the same sectors. Additionally, when TW calls unusual options activity,

📚Thread: How I Make Watchlists📝

There are countless ways to make watchlists. Each trader looks for particular things in a setup that fits their style. There is no science here. My goal is to share a simplistic strategy on how to become SELF-SUFFICIENT with watchlists. 🤝 There are 3 points I want to speak to:

1. I have extensive stock watchlists based on tickers I have either played in the past or have been watching with the intent of playing in the future. Especially with options, it is hard to jump into a stock not knowing how it acts.