Machine Gun Trading. Homework Task!

Special Episode: Trading The Whiplash

This is Chapter 2 of Trading The Whiplash. Chapter 1 here.

For the last eleven months I have been posting my levels every night and proving day after day that price does indeed respect our little walnut lines. But the truth is that this is not enough to give you all you need to trade. So to help people further in their trading, I have been writing special episodes most Saturdays for a similar amount of time. Today’s special episode focuses on trait that all new traders suffer from, something that I call machine gun trading.

You see as a day trader you need to be less Rambo in your trades and more Solid Snake from Metal Gear. You dont want to spray entries and exits acorss your chart, instead you want to wai for the right contidions to occur and strike when the oppurtunity arises!

The above won’t come as a surprise to any of you, many traders know that they must stick to a plan, the problem is often that new traders (and sometimes even old) suffer from the following issues:

• They do not write a daily plan before the start of each trading day

• They do not know what a good daily plan looks like

• They enter and exit their trades with no targets for the day

• They do not review their trades

• The do not allow their review to inform their trading the next day

If you’re wondering why you keep failing each time you try to day trade, then I can assure you the list above is a big factor in any reason. Rambo runs out into the battle shooting in all directions, Solid Snake treads carefully, analyses his surroundings and his risk and knows he only has 16 in the clip and 1 in the chamber, so he cautiously shoots each shot.

How do we become less Rambo?

Like with all things, the solution here is the simplest. Creating an effective daily plan each day before you begin your trades is the solution. So, I have some homework for you all in the week ahead. I am going to give you all a plan to use each day. Before you begin trading, you must have completed this plan to help you prepare for your entries and exits. Then together, in the walnut discord we can exchange ideas, discuss what worked on your plan and we need to improve on to get better. How does that sound?

If you accept the challenge, then below I have copied out some basic ideas that everyone should have an idea of before they step out onto the batlefield. Let’s breakdown each section of the plan:

Dissecting The Walnut Plan

You can download a copy of the daily plan here. Let’s breakdown what we are looking at section by section:

The Context:

The above section of the plan helps you understand where price is in relation to the previous sessions. Not just overnight but also the previous day. The last three questions here are crucial and might need revisiting each hour as the session ebbs and flows.

Once you have a grip on the context, your next mission is to decide what you want to see happen in RTH. If price sells off, where are we looking for support? If price rallies, where do we want a pull back entry? The same is also true for those of us looking to get short. We want to know where the most ideal entries are and curcially we want to WAIT for them to happen. It is also important to note here that we have already defined our targets, these may well be T3 targets and you will take T1 and T2 along the way, but always ensure your targets and your stop are based on a good risk/reward.

Lastly, once the day is done you will need to evaluate your performance and diarise your thoughts. This is an important part of being ready to go again the next day. Trading is a learning journey and this allows you to reflect, learn and grow:

If you want to make it in trading, there is no other way to trade. The only way to begin in this game is with a meticulous approach that allows you to take each step cautiously, where we take a wrong step, we have to do all we can to identify it, understand why it happened and eliminate it from our trading.

Let me know how your homework goes, I always respond to emails, dms and messages on twitter and dicord. Use me and lets grow together!

Much love,

PW.

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