My trading, set ups and a V2 of the trade book

During the first trade book I was able to find some solitude and peace in trading by staying in a hotel to separate my trading from the rest of the world and enjoy some focused time - focusing on it. I was able to put together an exact system of identified entries - the underlying options movement - the price image with my indicators at the start of the move - the price image with my indicators after the move - and the price image later in the day to see what would have been the best decision with that trade. 

The result is a repeatable set of patterns that are option ready to manage risk, an understanding of the underlying option movement around these key intraday set ups. For example, after the open - an opening range breakout pattern (made popular by Andrew Azziz - Carlos Zattarini in their white paper + book by Azziz and BearBullTrades.com trading system) - however what is not covered is the underlying options movement. I went and gathered by hand data around the underlying options movement - with these key set ups covered by their material and applied to the equity futures options market - avoid the pattern day trading rule entirely, and trade with an account as small as $2250 using the most amount of risk controlled leverage. 

The version 2 of the book I would like to identify earlier entries into the patterns - a result of looking at my trades from version 1 of the book ($45 on my website). Then blow up the images to a larger scale paper - with a higher quality photo printer. 

Dr. Elder (a professional trader and PhD and psychologist plus author) recommends analyzing your trades after you exit - and that once you do this process you will become a good trader. I found that to be true. 

It is hard to document your trades - identify where you are going right and wrong - and have it stare you in the face for accountability and not get better at it. The key concept to grasp is recognizing a consistent betting scheme - and sticking to your rule book. 

It is very important to have a concrete set of repeatable rules. I found that memorizing the top 2 patterns to trade to be effective in execution and consistent profitability. 

The 2% rule may seem to restrictive for your capital - you might want to use more - that is okay you can go into more niche specific schemes ranging from 10%-46% but knowing when to use them - and how much of your capital to use them on is very important. Say for 30% of your capital allocated to trading futures options - you allocate 2% only - that might not leave you with enough to make a trade - and if you are trading equities might fall subject to the pattern day trading rule - however 10% of your capital might and you might be able to locate a really good option and a repeatable set of rules to use it. 

Now that you have that - all you need to do is work on accountability to yourself - not talk about your trades or trading while it is going on - not brag about how well you are doing and keep an eye on the market. If you don't feel like trading don't. 

If you had an argument with your spouse - ate something heavy late at night - or are otherwise groggy - stay out of the market. Especially if you have another obligation at the same time - such as a work meeting - or doctors appointment or need to get the kids ready for school. Stay out of the market - following the Warren Buffet #1 rule first - don't lose money. Don't lose money - also preached by the 'CMT' association - chartered market technician. 

If you don't lose money, focus on a repeatable set of rules, know the underlying option movement + what option to trade, know when to stay out of the market, have consistent bets - it is hard to lose money. Managing your own impatience, sticking to the rules, and knowing what to happens on the fly when things don't work out as planned are the keys I've identified to success. 

My current set up + photo printer that I used to make the trade book are below: 

I think this makes great images - my concern is data leakage (but that is maybe a little too tinfoil hat like for this) however with a high stakes game like trading - game of skill - and access to information technology - security is as important as the right tools for trading. That's why I recommend using AVAST VPN to stay invisible online - not placing an actual stop order - but using a 'mental' one - with discipline and options to manage risk - following your betting scheme. I also recommend a back up WiFi - just dedicated to trading. 

It is also helpful to have one account dedicated to your strategy - and even a dedicated computer for trading but I have not been the best at following those - I usually dip into my account for spending - try other strategies or rules in it which can lead to losses or non optimal equity curves - and then have to recall what I did when - according to what etc. So I think if you have an account for the CAN SLIM strategy - one account for trading intraday options - another account for Buffet - an account for Graham - an account for a blended technical hybrid strategy - an account for your long-term retirement - an account for cash - a practice account for new strategies - and your main core account with a set of rules identified just for trading one particular type of strategy - you can keep everything straight. 

Just decide when and how much you are going to trade and what you are willing to risk and lose - and document all of your trades with actual physically taken pictures - physically printed and glued to your trade book - before during and after the trade - so you can see where you went right - where you went wrong and work to fix your mistakes and errors.