I just finished watching your first playbook webinar (was on vacation during the actual presentation) and I just wanted to say thank you for doing this for the trading community and I really took a lot away from this. The point you made towards the end about being hard on yourself about your very best setups really hit home for me because that is something I have really been trying to work on recently. When I first started trading I was mostly trading daily breakouts which only really required entering your full position size right at the breakout point but now that I am focusing more on stocks in play I am working on increasing my tier size incrementally especially in my A+ setups. In particular my bread and butter play is when a stock rips up in the AM on good volume and then pulls back in a little and finds a nice base and creates a tight consolidation range. I always am able to identify these setups and I always get long against the support it finds on the pullback but have been struggling to add more size once it breaks above this tight consolidation. Definitely something that I need to work on and your webinar kind of kicked me in the head about that issue I tend to be having with adding more size incrementally to my favorite setups.
Thank you and SMB again for all the free help and I will soon be subscribing to SMB real time to try and learn more from you guys through osmosis!
Some best practices to point in this email above:
1) Incrementally add size to your A+ setups. You cannot go from trading 500 shares to 3000 shares by just deciding to be bigger in your best set ups. There is an individual and slow journey to add size effectively. Step outside your comfort zone to find a new level of size but do so incrementally.
2) Most traders are too hard on themselves on the plays they will never make money- the shakeouts. And they are not hard enough on themselves for the set ups that make the most sense to them and work right away. It’s these later trades that most receive your harshest self-critique and thorough review. Make this change in your mindset.
3) Great job starting to be specific about the plays that you trade best. Build from your strengths.
We will emphasis more market principles like this with our new The PlayBook Webinar Series. Sign up here.