Transcription
You gotta treat this like a job. You gotta treat this like it's gonna change your life. I got a notebook at home and that's all I just go.
Now, here's the thing. That don't mean every play you make gonna be right because you can't account for waking up one day and pw go down $18. You can't you can't account for that.
My question is uh unfortunately sometimes on the West Coast I don't get to bed as early as I want. So sometimes I wake up it's like 15 minutes to bell. Um, what I was looking for is guidance on like a pregame, preession game plan. Like what are you congesting? What do you need to be aware of like a checklist before you get into it? Do you like check the VIX? Uh, do you go straight to the news? Do you go straight to checking your plays from the the night before? Um, just like uh what's the checklist? maybe like a guidance of like, hey, XYZ, uh, before you get started, be aware of this or that, you know, if you could help me out with something like that. Thank you.
So, first of all, that is a great question and I think you said that sometimes you get up 15 minutes before the bell. Guess what? A lot of us do. All right. So if I was here's what you should do as a trader so you can be prepared for the market each and every week. First thing I think you need to do is on a Saturday or a Sunday night I'm going to start off from the previous week that previous week that Friday you need to know what the Friday close was. Write that down. What was Friday's close?
Another thing you need to look down and the reason why is because you want to see where the market going to open at previously to Friday's close. Another thing you want to look at was what was the high of the previous week. I used to write that down. What was the previous week's high and what was Friday's close? What was the previous week's high? What was the previous week's low and then Friday's close? That's going to help you out because it's going to help you box out what you got to deal with going into the next week. Here's why that makes sense. If you understand what the previous week's high was, then that's going to give you a frame. you look at what I mean if you take the previous week's high with the previous week's lows doing that with the S&P 500 and doing it with the NASDAQ now you know a frame that you in right you're going to know a frame you now put the week inside of a frame the next thing you want to do is say where did Friday close at why does that mean because you want to know now where does Monday open at compared to Friday right if it opens higher than Friday then you know that the market is on the upward trend if it opens lower than Monday it can say okay the market has opened down. So that is going to be important for you.
The next thing I need you to do is once you understand that I want you to now mark your daily weekly gains. So first thing I want to go do now is I'mma start with the monthly first. I'm going to go to the monthly S&P and I'm going to go with the monthly NASDAQ. I'mma see where is that on the month. Is it a big red candle? Is it a big green candle? If it's a big red candle, then that tells me that this this this S&P or NASDAQ is bearish for the month. Okay? May make me take a pause. Or if it's green, it's going to make me say, "Okay, this is bullish for the month." That's good.
The next thing I'mma do now is go to the weekly. So, if it's green on the daily or it's green on the week, uh green on the daily, or if it's red on a daily, I mean on the monthly, I'm sorry, let me back up a little bit. If it's red on the monthly, you know, when I go to the weekly, I okay, I'm already in a this it's been bearish for the month. Let me look at it for the week to see what's going on. If the week is bearish, then now I'm going to go to the day. That tells me for the monthly and the weekly, this thing is bearish, meaning this stock or this company or this index is actually on a downtrend or going down. That helps me. So now I don't got to look at the monthly no more. I can look at the monthly next week because I can see what happens with that candle. So now I'm in the weekly. I need to see is it green or red. That's cool.
The next thing I need to do is mark my levels. Where's my break? Where's my swing high at? Where's my swing low at? What that allowed me to do now is box it in a little bit more. Right. The next thing I need to know is what is the trend like we talked about on that first one. Do I see higher highs taking place? Do I see higher lows to taking place? Do I see lower highs taking place? Do I see lower lows taking place? You need to be able to establish that or is the market going sideways creating that base.
Once you understand that, every day you get up now all you got to do is go check what you did Monday. Right? So Monday, you do that. You do the you do that every week. Now you don't got to do that every day. Now all you doing each day is checking off levels. What level am I at now? Where is it? Is it between this? Is it between that? Is it between this? Is it between that? Did it break this neck? Did it create a new high? Are sellers kicking in? Are buyers kicking in? Are we consolidating? If you can box that market in simply as that, that'll help you week to week because now all you got to do is keep at you keep extending your data. You got to keep going back and check this. So when you mark your when you mark your chart up, your chart now already says Friday's low, Monday's open or close, swing high, swing low, low or low. And now you got that on your chart. What you doing now is on your journal. You're saying today sellers took over at this price. Today at this time buyers took over today was a stalemate.
You got to treat this like a job. You got to treat this like it's going to change your life. I got a notebook at home and that's all I just go. Now here's the thing. That don't mean every play you make gonna be right because you can't account for waking up one day and p go down $18. You can't you can't account for that. So guess what you do? You write on your list on this day Palo Alto or whatever company this news came out. This was the catalyst for this going down. Guess what happened on your chart? Wherever it closed at, you write that down on you write down on your trade view. There's going to be a thing that says text. And that text you abbreviate whatever it is, you abbreviate it. And then in your notes, you got the abbreviation and what it mean. So now in your training journal, you know exactly what's going on. And so now what happen is moving forward every time you need to make a play you don't have to rechart it. All you doing now is going to the data and saying oh if it if it overtakes this price this why I'm getting in that if it and now we start doing what's called giving oursel a trading plan.
How do you give yourself a trading plan? Remember I said if it gets to this high, if something hit a alltime high, what do you know it's going to do? Retrace. So now if it hits a alltime high, you saying to yourself, okay, I want to see it retrace and once it retrace, I want to see what it does. Does it fall down to that lower low? Does it create a lower high and then bounce? Or does it create a low a base and then fall? So now you say to yourself, does it drop base rally? Does it drop base drop? or does it drop base stretch out a little bit? Right? So now you have a total understanding of what's going on with this. And you do this to every company that you trade. You will never have to guess when to get in another option again. You now automatically know every day. All you doing, nope, it ain't hit my thumb. I don't even got to keep looking at it. Now you start looking at the market for entertainment. You start researching stocks, you say, "Okay, did this hit my Nope. Go through my list. Did any of these hit mine?" All right. Damn. All right. Only thing you'll be mad about now is you ain't had a money or you had something going on that made you miss your entry point. That's real life. That can happen because I don't like to set alerts to automatically trigger a play. That's just me. I like to be there. I like to see it. I like to look at it on my phone. I like to physically go execute my play. I don't like my plays to just trigger, right? I'm still hands on. You know what I'm saying? But but the people who like their plays to trigger, you got it. You set your points, you get in it, right? But if you understand the game from that perspective and you play the game from that way, now it becomes a ongoing process.
Somebody said today in the group, they said, "Trap, bro, I feel like we got in these same plays last year." I said I only got about 25 plays that I get in. There only about 25 companies I trade, right? I'm not going outside travel. Did you see this? Hell no, I ain't see it. Too busy looking at the 25 I got on the list. I'll be mad when I miss them. I'm mad I miss Apploving. I'm mad I miss AET. I'm mad I miss goddamn Meta. I'm mad I miss goddamn but I got 25 more on the list. So the minute something go on and I miss I'm like a goddamn right. I got 20. I don't need to be guessing. I got my 25 companies. This one I'm sticking at. Out of the 25 of them, 19 of them are tech companies. I like trading tech. So, Alex, my guy, I appreciate you for that question. You take that list. I just gave you some free game. Once I put the options course together, that's going to be in the options. I mean, once I add the technicals to the options course, that's going to be in it. I just gave it to you for free because it don't hurt me to give you free game.