Investing & Day Trading Education:  Day Trading Academy

Master Trader Oct 17th Recap: Meet DR. Z – 8.5 Points 75% win ratio

I would like to formally introduce Dr. Z which has been absolutely killing the markets as of late. He has started to become one of our Master Traders. Since we always like to incorporate our Master Traders into the program to both improve the strategy and make their own trading better we asked Dr. Z to start sharing his trades with us. He has a unique philosophy that he plans on sharing in more detail called market physics. Look forward to introducing him very soon! Enough introductions here is Dr. Z:

No one likes starting off on a loss and worse is starting off with two. Today was about keeping cool under the pressure of losing that can come when the market hammers you right off the bat. I’ve experienced the downward spiral too many times when I let my emotions get the best of me. It leads to doubt, desperation, and you will lose money really fast. I haven’t had too many losses in a row in a while either but market always has a way of keeping you in check.

Started the day with a premarket trade expecting a deeper pullback after the great run down. Got a great entry and I pulled it for .75 when it showed signs of popping the other direction and the market open decided going up was the direction of the day. The market shot up to the upside and I waited for the pullback for entry. Upon entry it pulled back deeper to stop me out again for 5 more ticks.

101813 DRZ

At this point I sat back and took a look at what was happening and analyzed the situation. I had been down the road countless times of doubting myself on my journey and dream to be a professional trader. It took me months to learn to trust my judgment and today was no exception. I mapped out my market decided to wait and see what she was going to do. When she failed to continue down a second time I decided to jump back in with a tight stop. The higher lows were my indication she was going to move on up. Snagged a great run for 2.75 points.

I drew a trend line just for possible areas and waited for the next pullback. I expected the deeper pullback and on the second edge I jumped in for a great entry. I took a quick point at the slowdown and on the second pull back realized there was a possible repeating pattern from the previous run. It was going for the deeper retracement hitting the edge and grinding up for takeoff. I would have pulled again at the first slow down but after it repeated the same thing I adjusted my target higher waiting for the continuation. The second run was the confirmation of structure of these runs up.

I took a few more traditional trades for a few more points and called it a day. Keeping calm and analytical was the lesson of the day. It’s easy to doubt yourself into making bad decisions. Making good decisions that lose isn’t wrong. Making bad decisions is something you can learn from and move forward. Making no decision is almost always fear. Great personal check today. Adapt and overcome.

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