✍️📘EDUCATIONAL THREAD📘✍️

Stop Losses

first you must understand my strategy/style because this thread is based off what works for MYSELF

if you have a diff strategy, think about fitting it to YOUR OWN style

SL = Stop loss
r/r = risk reward ratio
TL = Trendline
b/o = Breakout before getting into my strat i want to talk about SL's in general

imo, your SL should first be based off the max amount of money you're willing to lose per trade

thennn, based off chart lvls

if u put a SL below a lvl on the chart even tho you're not willing to lose that amt

🔥📚EDUCATIONAL THREAD📚🔥

Topic: What are my favorite/highest win rate setups? How do I execute these trades?

-I will go over:
•Penny day trades
•Largecaps day trades

Execution is an exact science, and it is key!

learn scaling in+out + execution here! 1) PENNY DAY TRADES

Setup 1: The green hammer aka hammer candy, all credit to @mullinsmomentum and @tuckerbrees !

what do i look for? i look through top premarket gainers and previous runners, and i compare the float and premarket volume

i prefer low float + high volume

📚💥EDUCATIONAL THREAD💥📚

topic recommended by @MullinsMomentum :

how do you know which options contract to take? (+greeks explanation)

i’ll be going over what i do to choose the correct contract whether it’s a scalp, longer day trade or swing trade

i’ll keep it SIMPLE! the greeks: important to know how contracts move and what different factors go into them. i will define them as simply as possible

DELTA:
-the amount your contract increases in value for a $1 move of the stock

-the further in the money you are, the higher delta will be

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how do i make my watchlists?

what aspects of charting take prominence over the others?

let me first mention...no i do not have a scanner, no i don’t scan for setups

i have a big list of tickers i go thru every night. that’s what works for me summary:

1) gap fills + awesome risk/reward
2) overall chart patterns/trend breaks
3) sector similarity
4) “inside days”/mini consolidation
5) levels and price targets
6) go back thru, which will most likely occur based on momo+sector

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what do i do if it rips past my trigger point on open?

MANYYY people have asked this question, as this is a common occurrence

i answered as detailed as possible, enjoy and learn!😁 there are a few ways i personally play this...

1) immediately buy on trigger break

this is one technique i have done a lot. no matter what, my trigger point will usually be a major daily resistance

‼️more education on stuff i look for‼️

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day like yesterday, market was super red and turned super green

before any of this i will say, WAIT FOR CONFIRMATION, don’t try to catch exact top or bottom

days like this i watch for, strength against the market

for example if market is ripping and super green, look for put setups on tickers that are weak or red

when market turns back other way, those weaker stocks should die much faster

additionally, finding bearish setups while market is bull ripping can provide nice entries

🔥INFORMATIONAL THREAD🔥

CRITICAL to my style + always useful!
‼️📝‼️

lots of my plays deal with resistance/support breaks

-what happens after that is what is most critical for my style, this is how i choose my triggers

-when a stock breaks a resistance it’ll basically either 1) just moon and form a big green candle followed by another

2) it’ll form a red candle right after...seeing if the previous resistance now holds as a support

in #2, if the previous res. successfully holds as a new support, the stock should take a leg up