Catching the turn with stops and alerts

I got an email from James and he’s trading part-time trying to day trade. He works nine to five. He’s got two small children in a smaller account that he’s done pretty well with. He’s still up handsomely, although he’s given back some and he said, “it’s proving tough to day trade under these circumstances. So the question is my question for you is how do I gravitate to a longer timeframe mindset? And what does the process for finding swing trades look like?”

So I think those two words are hard to conjugate. I think it’s hard to swing trade. You know, if you’re not in front of the computer what you can do is put in your orders again, I’d be looking at daily timeframes. If you could catch things turning from after they’ve consolidated. They’re in a downtrend and things have pulled back, then they trade sideways.

You know, you can look to capture the upside, move above the breakout above resistance, for example. And if you listen to some episodes previously in the last week or so, I talk about setting alerts where even if you’re working nine to five, you can set an alert, not a Sell Limit above the market that would take you out of a winning trade, but an alert that would ping your smartphone or otherwise so that you could adjust your protective stop and stay in the trade for as long as possible.

That might be the best way to do it. You know, I think you’ve already have the mindset as you’ve recognized that it’s very, very difficult to be in front of the screen and to day trade with your family and work life. So I think your mindset’s already there. Because you’ve already come to that conclusion so you don’t need any convincing. So now that the, now the thing is to go back and listen to last week’s episodes about managing a book of stop orders. You probably want to be very selective in what you’re looking at.

You said here, you know how to run a scanner. So I won’t get into that. But yeah, it could work. You you’re only going to know if you try obviously risk only small amounts of capital at the beginning, just to see if you can develop a feel for it. And I think you’re going to do very well because once you take your eye off the screen and focus on the other things in life that are also important for you, you inadvertently let the market do the work for you and the market will be willing to pay you as long as you put the risk on and then sit on your hands for as long as possible.

If you’re working like a dog, which it sounds like you are, you kinda have to put some self love here. Like, do you love and care for yourself enough to stay out of your own way. Because with your account size, which I won’t get into here, but it’s kind of underfunded.

So you have, you might have a tendency to take smaller gains, but the problem is that that typically doesn’t work for you long run long term, especially if you have long term goals of growing your wealth, it’s hard to grow your wealth substantially by taking lots of small short term gains, go back and listen to the episode that I spoke about in terms of being a breakeven trader.

This is a computer generated transcript.

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