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Charts & setup
What is your monitor and TradingView setup?
I'm only using one screen, one monitor. The layout is simple: dollar volume, market cap, ADR, low-of-day distance, and the four EMAs. I think 99% of the time I'm using TradingView. My setup is similar to the stream thumbnail, not the ten screens you see in some videos.
Should I copy another trader’s moving-average settings?
The exact setting isn't the important part; the reason you're using it is. If you've tested a 10 SMA against a 9 SMA or a 10 EMA and decided it works best for you, that study matters. Don't use a moving average just because another trader uses it. Find your own way.
Where do you anchor VWAP (AVWAP)?
The main anchor I use is generally the high of the whole base. A second anchor can be the swing high of the more recent, smaller base. There's no single correct anchor; use the one that suits the stock. I pay attention to where price is relative to it and how the stock responds.
Do you watch volume when entering a trade?
I don't watch volume when I'm entering a position.
Screeners & selection
What are your screeners for? Why do you still review charts yourself?
The screeners narrow down my universe and give me potential candidates. They don't tell me which stocks to trade today. I'm the one who decides which stock to trade, where, and when. Going through the watchlist helps me see what's happening in different sectors and market caps. Flipping through charts also trains pattern recognition. It's part of learning.
Are your screener settings fixed?
I think they're mostly the same, though I may have changed them a little. Maybe I'll try changing the dollar-volume filter to $100 million. I've also filtered some biotech names out of my potent watchlist. I think it's important to improve your setups a little over time.
What matters most in the stocks you choose?
I prefer liquid stocks. As my account grew, and from experience, I think liquid stocks tend to produce better trades than illiquid ones. Most of the super-high-ADR names are lower-cap and a little illiquid. I still trade high-ADR stocks when they're liquid. The main factor is liquidity.
How do you judge market breadth?
Mainly I use the number of stocks in my own watchlists. They were generally leaders when I found them in my screens. When they turn weak, I gradually downgrade them from leading to mediocre and then lagging. I sometimes look at RSP, but it's not the main thing.
Entries
What makes a pullback entry good?
Rather than focusing on one EMA, anchored VWAP (AVWAP), a previous high, or a gap, I look at how many support levels come together. The stock still needs to look good on the daily or weekly chart: building higher lows and responding to its moving averages. I don't like choppy stocks with lots of shakeouts and wicks.
Do you trade later in the day or at the close?
Yes, I occasionally take entries later in the day. One of my entries that day was midday. But most of my trades are in the first hour, or maybe the first two hours.
Do you use market orders or limit orders?
About 90% of the time I use market orders for entries. Occasionally I'll use a limit order, perhaps for a stock with a bigger spread or less liquidity. For stop losses, I use market orders. I don't use stop-limit orders because I want to get out when the stop price is reached.
Risk & stops
How much risk would you use if you were learning again?
If I could learn trading again, I'd probably tell myself to use 0.3% risk per trade. That would suit my low-win-rate, tight-stop approach better, because it's prone to consecutive stop losses and losing streaks. Someone using wider stops and a higher win rate may use a different amount.
Do you size up when the stop is extremely tight?
Probably not. With a 0.5% stop, I might still use around 25% size, depending on the stock and how fast it moves. A tight stop can make a good trade, but there's always gap risk. If you size too big, a gap can really damage your account.
Why do you use hard stops?
Early on, I didn't use hard stops. I'd exit manually when the stock went below my stop price, but often I'd ignore it, wait for a bounce, or hope for a miracle. That led to bigger losses. That's the main reason I keep using hard stops.
How do you decide whether to re-enter after being stopped out?
Honestly, I don't have a really good answer. I don't have a maximum number of re- entries. An easier way may be to treat each trade independently: forget the earlier losses and ask whether this setup is valid now. If you want to prevent too many re- entries, zoom out and focus on daily levels. You won't get as many attempts in a single day.
Do you enter or hold positions near earnings?
Generally, I won't take a stock within five days of earnings, I think 95% of the time. Even if I take it, I'll sell at least half, or exit, if I don't have enough cushion. I look at how fast the stock moves and how volatile its last few earnings were. The cushion I want depends on the stock.
Selling
Do you always hold part of a winner until the trend ends?
Sometimes I sell the whole position into strength, especially when I think the market is extended. I may miss more upside, but I don't want to give back too much or lose mental capital. I'd like to capture most of the move, not necessarily all of it. I still sell too early, and I'm trying a mixed approach. Selling is hard. I don't have a hard rule.
Learning & review
What do you do after a losing streak?
I'd try to rest and stop trading for at least a day or two. If new opportunities appear, I may still take one, but most of the time I want a mental reset. Then I start smaller and look for entries I'm confident in. One of my biggest mistakes in 2024 was increasing risk during a drawdown. Never increase risk when you're on a losing streak.
How do you reduce overtrading?
I don't think I can completely get rid of it. I try to reduce it and minimize the damage. Review your past trades and identify the ones you shouldn't have taken. With enough records, you'll start seeing when you're prone to overtrade. I tend to do it when the market is extended: I micromanage, get aggressive, and chase if I missed the move.
What do you record and review in your trading journal?
I'd comment on both the entry and exit for each trade: what was good, what I did wrong, whether I was oversized, or whether I chased. I still log trades in Excel. For a huge winner, I go back to the chart and compare my entries and exits with the market, peers, sector, and index. In a prolonged drawdown, I write about how I feel, what went wrong, and how to avoid repeating it.
How should I study charts?
I start with the clear trends and look for possible entries where I can define tight risk. Where could I enter in an uptrend or downtrend with a clear stop? Then I gradually study choppy markets too, to see what they look like and which entries can fake me out. I start with trends because I'm a trend follower and swing trader. If you prefer reversions, focus on where trends become extended.
When would you consider trading full-time?
I'd want to prove myself for at least two years, through good and bad conditions: uptrends, sideways markets, and downtrends. Trading gains should be greater than job income, perhaps double or triple, because returns are volatile and unstable. You need a financial cushion.