How to Use This Document
This is not theory. This is a step-by-step execution manual you can follow starting tomorrow morning. Every section includes exact times, exact numbers, exact rules. Print the checklists, set your alarms, and follow the process.
Table of Contents
- Pre-Market Routine (7:00 – 9:30 AM)
- Opening Bell Execution (9:30 – 10:00 AM)
- Core Trading Strategies with Exact Rules
- Position Sizing Calculator
- Trade Management: Entry to Exit
- Time-of-Day Rules
- Risk Management Rules
- Indicator Settings
- Order Types and Hotkeys
- Real Trade Examples (Walk-throughs)
- End-of-Day Routine
- Checklists and Templates
1. Pre-Market Routine (7:00 – 9:30 AM)
7:00 – 7:10 AM: Market Context Check
Open your futures chart and check:
| Item | Where to Look | What to Note |
|---|---|---|
| S&P 500 futures (ES) | TradingView, ThinkorSwim | Direction and magnitude (green/red, how much %) |
| Nasdaq futures (NQ) | Same | If tech is leading or lagging |
| VIX level | TradingView | Below 15 = calm. 15-20 = normal. Above 20 = volatile (widen stops) |
| 10-Year Treasury Yield | Investing.com | Rising = pressure on growth/tech stocks |
| Dollar Index (DXY) | TradingView | Strong dollar = headwind for stocks |
Decision: Based on futures, what is market sentiment?
- Futures up 0.5%+ → Bias toward long setups
- Futures down 0.5%+ → Bias toward short setups or gap-fade longs
- Futures flat → No directional bias; wait for stock-specific catalysts
7:10 – 7:15 AM: Economic Calendar
Go to ForexFactory.com/calendar (free, color-coded).
Mark any HIGH-IMPACT events (red icons) happening today:
- 8:30 AM releases (CPI, Jobs, GDP): Pre-market levels will shift AFTER release. Re-mark levels after.
- 10:00 AM releases (ISM, Consumer Confidence): Potential mid-morning reversal trigger.
- 2:00 PM (FOMC): Don’t take new positions 30 min before.
If major data at 8:30 AM: Wait until 8:35 AM to finalize your watchlist. Levels change.
7:15 – 7:30 AM: News and Catalyst Scan
Check these in order:
- Earnings calendar (earningswhispers.com) — Who reported pre-market?
- MarketWatch pre-market movers — Top gainers/losers
- Finviz.com → News tab — Headlines linked to specific tickers
- Twitter/X: @DeItaone, @LiveSquawk, @unusual_whales — Breaking news
What counts as a STRONG catalyst (trade-worthy):
- Earnings beat/miss with EPS surprise > 10%
- FDA approval/rejection
- Major contract win or partnership
- Merger/acquisition news
- Analyst upgrade with price target > 15% above current
- Short squeeze setup (SI > 20% + positive catalyst)
What is a WEAK catalyst (likely to fade):
- Sector sympathy with no direct news
- Recycled old news
- Minor press release with no revenue impact
- Pre-market move with no identifiable reason
7:30 – 8:15 AM: Run Your Scanner
Exact Scanner Filters (for stocks in play):
| Filter | Setting | Why |
|---|---|---|
| Gap % | > 4% (up or down) | Minimum move to be interesting |
| Price | $5 – $50 | Sweet spot for volatility + affordability |
| Pre-market Volume | > 100,000 shares | Confirms real interest |
| Float | 2x | Unusual activity vs. normal |
| Average Daily Volume | > 500,000 | Can actually exit position without slippage |
Where to scan:
- FREE: Finviz (delayed), ThinkorSwim (real-time with account), TradingView
- PAID: Trade Ideas ($118/mo), Benzinga Pro ($117/mo)
A stock is “in play” when ALL of these are true:
- Gapping 4%+ pre-market
- Has a clear catalyst (NOT random drift)
- Pre-market volume > 100K shares
- Relative volume > 2x
- Clean chart pattern forming pre-market
8:15 – 9:00 AM: Chart Preparation
For each watchlist stock (MAX 5 stocks), mark these levels:
LEVEL CHECKLIST (mark on chart):
□ Pre-market high (PMH) — potential breakout trigger
□ Pre-market low (PML) — potential breakdown trigger
□ Previous day close (PDC) — gap fill target
□ Previous day high (PDH) — major resistance
□ Previous day low (PDL) — major support
□ VWAP (will anchor at 9:30)
□ Round numbers nearby ($10, $15, $20, etc.)
□ 9 EMA and 20 EMA on the daily chart
□ Any visible support/resistance from daily chart
9:00 – 9:25 AM: Write Your Trade Plan
For each stock, write down BEFORE the bell:
STOCK: _______
BIAS: Long / Short / Wait for direction
ENTRY TRIGGER: Buy above $____ with volume OR Buy at $____ pullback
STOP LOSS: $____
TARGET 1: $____ (take half off)
TARGET 2: $____ (trail remainder)
POSITION SIZE: ____ shares (based on risk calc)
INVALIDATION: I will NOT take this trade if ________________
9:25 – 9:30 AM: Final Setup
- Set price alerts at PMH and PML for each stock
- Arrange charts on monitors (1-min and 5-min side by side)
- Confirm position size in your order entry
- Take a breath. You’re prepared. Execute the plan.
2. Opening Bell Execution (9:30 – 10:00 AM)
The First 60 Seconds (9:30:00 – 9:31:00)
DO NOT TRADE. Watch only.
The first minute is chaos — wide spreads, erratic prints, market makers establishing fair value. Let the first 1-minute candle CLOSE before acting.
9:31 – 9:35: Opening Range Formation
Mark the high and low of the first 5-minute candle. This is your Opening Range (OR).
IF your stock is a “Gap and Go” candidate:
- It will immediately push ABOVE the pre-market high
- Volume will be heavy (above average)
- Wait for the first 1-minute pullback (first red candle) → Enter long
- Stop below the pullback low
IF your stock is a “Gap Fade” candidate:
- It will fail at pre-market high or immediately sell off
- Volume on selling is heavy
- Wait for price to break below the opening range low → Enter short
- Stop above the opening range high
9:35 – 10:00: First Setups Trigger
Two primary plays in this window:
Play 1: Opening Range Breakout (ORB)
- Price breaks above OR high with volume 1.5x+ average → Long
- Price breaks below OR low with volume 1.5x+ average → Short
- Stop at the opposite side of the opening range (or midpoint for tighter risk)
Play 2: First Pullback to VWAP
- Stock trends strongly from open, then pulls back to VWAP by 9:50-10:00
- Buy at VWAP with confirming candle (hammer, engulfing)
- Stop below VWAP
RULE: Use 50-75% position size before 9:45 AM. Full size only after 9:45.
3. Core Trading Strategies with Exact Rules
Strategy 1: Opening Range Breakout (ORB)
Timeframe options:
| Range Period | Best For | Stop Width | Win Rate |
|---|---|---|---|
| 5-minute ORB | High-volatility momentum stocks | Narrow, more trades | 45-50% |
| 15-minute ORB | Most liquid stocks, ETFs | Moderate | 50-55% |
| 30-minute ORB | Indices, futures, when you want fewer trades | Wide | 55-60% |
I recommend starting with the 15-minute ORB (9:30-9:45 AM range).
Exact entry rules:
- Wait for the first 15-minute candle to close (9:45 AM)
- Mark the HIGH and LOW of that candle
- For LONG: Enter when a 5-minute candle CLOSES above the 15-min high
- For SHORT: Enter when a 5-minute candle CLOSES below the 15-min low
- Volume on the breakout candle MUST be > 1.5x the average of the ORB candles
- If volume is weak on the break, SKIP
Stop loss:
- Place stop at the OPPOSITE end of the opening range
- If range is too wide (stop > 2% of stock price), use the midpoint of the range instead
- NEVER move stop further away
Profit targets:
- Target 1: 1x the height of the opening range (take 50% off)
- Target 2: 2x the height of the opening range (take 25% off)
- Trail remaining 25% using 5-min candle lows/highs
Filters to improve win rate:
- Trade in the direction of the pre-market trend (gap up → favor long breakout)
- ORB range should be 0.3%: GO LONG at 3:30 PM
- If the stock/index is down > 0.3%: GO SHORT at 3:30 PM
- If between -0.3% and +0.3%: NO TRADE (signal too weak)
Entry: Market order at 3:30 PM Stop: 0.3-0.5% adverse move Exit: Close at 3:59 PM or market-on-close. DO NOT hold overnight. Size: 50-75% of normal (small per-trade edge, profits come from repetition)
When this works best:
- Clear trending day (the stronger the day’s trend, the stronger the last-30-min push)
- High VIX environment
- Dealers are net short gamma (check SpotGamma or GEX tools if available)
Next-day swing (optional): After a strong last-30-min move, FADE it the next morning (hold 1-3 days).
4. Position Sizing Calculator
The Formula
Shares = (Account Size × Risk %) / Stop Loss Distance
Quick Reference Tables
$25,000 Account (1% risk = $250 per trade):
| Stop Distance | Shares | Dollar Position (at $50 stock) |
|---|---|---|
| $0.25 | 1,000 | $50,000 |
| $0.50 | 500 | $25,000 |
| $0.75 | 333 | $16,650 |
| $1.00 | 250 | $12,500 |
| $1.50 | 166 | $8,300 |
| $2.00 | 125 | $6,250 |
$50,000 Account (1% risk = $500 per trade):
| Stop Distance | Shares | Dollar Position (at $50 stock) |
|---|---|---|
| $0.25 | 2,000 | $100,000 |
| $0.50 | 1,000 | $50,000 |
| $0.75 | 666 | $33,300 |
| $1.00 | 500 | $25,000 |
| $1.50 | 333 | $16,650 |
| $2.00 | 250 | $12,500 |
$100,000 Account (1% risk = $1,000 per trade):
| Stop Distance | Shares | Dollar Position (at $50 stock) |
|---|---|---|
| $0.25 | 4,000 | $200,000 |
| $0.50 | 2,000 | $100,000 |
| $0.75 | 1,333 | $66,650 |
| $1.00 | 1,000 | $50,000 |
| $1.50 | 666 | $33,300 |
| $2.00 | 500 | $25,000 |
When to Use Different Risk Percentages
| Risk Level | When to Use |
|---|---|
| 0.5% of account | First 3 months of live trading; after 3+ consecutive losses; unfamiliar setups; choppy market |
| 1.0% of account | Your standard risk — proven setups, normal conditions, established track record |
| 1.5% of account | A+ setups only — perfect pattern + catalyst + volume + market alignment |
| 2.0% of account | Absolute best setup of the week — everything aligns, conviction is maximum |
Buying Power Check
After calculating shares, verify:
Shares × Stock Price ≤ Available Buying Power
With 4:1 intraday margin on a $50K account = $200K buying power.
If your calculation says buy 2,000 shares of a $150 stock (= $300K needed), you must reduce to what your buying power allows.
5. Trade Management: Entry to Exit
The Partial Profit System
Recommended approach (50/50 split):
- Take 50% of position off at Target 1 (1.5-2R)
- Move stop to BREAKEVEN on remaining 50%
- Trail remaining 50% using candle-low method or EMA trail
- Close everything by 3:50 PM
Alternative (thirds):
- Take 1/3 off at Target 1 (1R)
- Take 1/3 off at Target 2 (2R)
- Trail final 1/3 aggressively
- Move stop to breakeven after Target 1
Trailing Stop Methods
Method 1: Candle-Low Trail (recommended for beginners)
- After each completed 5-min candle, move stop to the LOW of that candle (for longs)
- Never move the stop backward — only forward
- Simple, visual, requires no calculations
Method 2: EMA Trail
- Use the 9 EMA on the 1-min chart (for scalps) or 5-min chart (for swings)
- Exit when a candle CLOSES below the EMA (not just a wick)
- Stays in trends longer than candle-low method
Method 3: ATR Trail
- Stop = Highest close since entry minus (1.5 × ATR on 5-min chart)
- Adjusts dynamically to volatility
- Best for volatile instruments
Method 4: Time-Based Exit
- Maximum hold times by strategy:
- Scalps: 5-15 minutes
- ORB trades: Close by 11:30 AM if target not hit
- All intraday: Close by 3:50 PM
The Breakeven Rule
After Target 1 is hit:
- Move stop to your entry price (breakeven)
- This creates a “free trade” — worst case you break even on the remainder
- NEVER let a profitable trade (that hit Target 1) turn into a loss
Scaling In (Adding to Winners)
Only add when:
- You are already in profit (position is working)
- Price has confirmed the trend (first higher low after breakout)
- Volume supports the continuation
- Your total risk (all tranches combined) stays within your max per-trade risk
How to add:
- Add 50% of original size on the first pullback that holds above entry
- Move stop for ENTIRE position to below the pullback low
- Never add more than once (2 tranches maximum for day trades)
NEVER add to a losing position.
6. Time-of-Day Rules
When to Trade (and When to Sit)
| Time (ET) | Rule | Position Size |
|---|---|---|
| 9:30-9:35 | WATCH ONLY — let first candle close | 0% |
| 9:35-9:45 | ORB and Gap-and-Go entries only | 50-75% |
| 9:45-10:30 | PRIME TIME — best setups, full aggression | 100% |
| 10:30-11:30 | Good setups still work; be selective | 75% |
| 11:30-1:30 | NO NEW TRADES — review, eat, plan afternoon | 0% |
| 1:30-2:00 | Start watching for afternoon setups | 0% (watching) |
| 2:00-3:30 | SECOND PRIME TIME — institutional activity | 100% |
| 3:30-4:00 | Last-30-min momentum OR close out positions | 75% |
Hard Time Rules
These are non-negotiable:
-
“No breakouts before 10:00 AM” — Many false breakouts happen 9:35-10:00 as early traders take profit. Wait for the 10:00 candle to confirm.
-
“No new trades between 11:30 and 1:30” — Unless breaking news. Use this time for journaling and preparation.
-
“All positions flat by 3:50 PM” — Unless you have an explicit overnight plan. Don’t accidentally become a swing trader.
-
“If not in a trade by 11:00 AM, wait until 2:00 PM” — Don’t force setups. The market will give you opportunities in the afternoon.
-
“Reduce size 25% on Fridays” — Lower volume, weekend risk, end-of-week positioning can be erratic.
The 10:00 AM Reversal
This is the most common intraday reversal time. The initial opening move often exhausts itself by 10:00-10:30 AM.
What to do:
- If you’re in a trade that’s working, tighten your stop at 10:00 AM
- If you’re looking for a reversal play, 10:00-10:30 is your window
- If the stock holds its trend THROUGH 10:30 AM without reversing, the trend is likely real (higher probability continuation)
7. Risk Management Rules
Daily Loss Limits
| Level | Trigger | Action |
|---|---|---|
| Caution | -2% of account | Cut position size in HALF for remaining day |
| Hard Stop | -3% of account | DONE for the day. No more trades. Walk away. |
| Weekly | -5% of account | Take 1-2 days off. Return with 0.5% risk. |
| Monthly | -10% of account | Full week off. Complete strategy review. |
Dollar amounts:
| Account | Caution (-2%) | Hard Stop (-3%) | Weekly (-5%) |
|---|---|---|---|
| $25,000 | -$500 | -$750 | -$1,250 |
| $50,000 | -$1,000 | -$1,500 | -$2,500 |
| $100,000 | -$2,000 | -$3,000 | -$5,000 |
The Circuit Breaker System
| Trigger | Action |
|---|---|
| 2 consecutive losses | Reduce size to 50% |
| 3 consecutive losses | STOP trading for 1 hour minimum |
| 4 consecutive losses | Done for the day |
| Green-to-red (gave back 30%+ of day’s gains) | Done for the day |
| Loss before 10:30 AM exceeding -1.5% | Done for the day (misreading market) |
Maximum Positions
| Account Size | Max Simultaneous Positions | Max Total Risk Deployed |
|---|---|---|
| $25,000 | 2-3 | 2-3% ($500-$750) |
| $50,000 | 3-4 | 3-4% ($1,500-$2,000) |
| $100,000 | 4-6 | 4-5% ($4,000-$5,000) |
Sector Correlation Rule
No more than 2 positions in the same sector simultaneously.
If you’re long AAPL risking $500, you can take ONE more tech long for $500. You CANNOT be long AAPL, MSFT, GOOGL, and NVDA at the same time (4x correlated risk).
Before adding a position, ask: “If SPY drops 2% right now, what happens to ALL my positions?” If the answer exceeds your daily stop level, don’t add.
8. Indicator Settings
Chart Setup
Primary chart: 5-minute (for trade identification and management) Secondary chart: 1-minute (for precise entries and exits) Context chart: Daily (for key levels, overall trend)
Exact Indicator Settings
Moving Averages (on 5-minute chart):
| EMA | Use |
|---|---|
| 9 EMA | Intraday momentum; first pullback support; aggressive trailing stop |
| 20 EMA | Intraday trend direction; “line in the sand” |
| 50 EMA | Overextension reference; mean-reversion target |
Moving Averages (on 1-minute chart):
| EMA | Use |
|---|---|
| 9 EMA | Scalp trailing stop |
| 20 EMA | Short-term trend on 1-min |
Rule: Price above 20 EMA on 5-min = bullish bias. Below = bearish bias. Trade in the direction of the 20 EMA.
VWAP:
- Standard VWAP (resets daily) — the “fair value” line
- VWAP + 1 Standard Deviation = mild resistance/first overextension level
- VWAP + 2 Standard Deviations = significant overextension (mean-reversion zone)
- VWAP + 3 Standard Deviations = extreme (unsustainable, high probability fade)
RSI Settings:
- Period: 14 on the 5-minute chart
- Overbought: 70 (use 80 on strong trend days to avoid exiting too early)
- Oversold: 30 (use 20 on strong downtrend days)
- Use for DIVERGENCE, not as a standalone signal
Volume:
- 20-period SMA of volume (shows average as a line on volume bars)
- Any bar above this line = above-average volume = meaningful
Relative Volume (RVOL):
| RVOL | Meaning | Action |
|---|---|---|
| 2x daily ATR from open = extreme) |
9. Order Types and Hotkeys
Order Type Selection
| Situation | Order Type | Why |
|---|---|---|
| Breakout entry | Stop-Market (buy stop above level) | Speed — you need to be in immediately |
| Pullback entry | Limit order at your level | Better price — let the stock come to you |
| Stop loss | Stop-Market | MUST be filled — never use stop-limit for protective stops |
| Profit target | Limit order at target price | Locks in exact price |
| Emergency/Panic exit | Market order | Get out NOW, price doesn’t matter |
| Illiquid stock | Stop-Limit (with $0.10-0.20 offset) | Controls slippage |
Hotkey Setup (Recommended Layout)
Buy side (left hand):
| Key | Action |
|---|---|
| Shift+1 | Buy 100 shares at Ask |
| Shift+2 | Buy 250 shares at Ask |
| Shift+3 | Buy 500 shares at Ask |
| Shift+4 | Buy 1,000 shares at Ask |
Sell side (right hand area):
| Key | Action |
|---|---|
| Shift+Q | Sell 25% of position at Bid |
| Shift+W | Sell 50% of position at Bid |
| Shift+E | Sell 75% of position at Bid |
| Shift+R | Sell 100% of position at Bid |
Risk management:
| Key | Action |
|---|---|
| F12 | Cancel ALL open orders |
| Ctrl+Shift+X | PANIC — flatten ALL positions at market |
| Shift+S | Place stop loss at last price minus $0.50 |
Critical rules:
- Keep BUY keys and SELL keys in different keyboard regions (prevent accidents)
- ALWAYS have a panic/flatten-all button accessible
- Test every hotkey in a simulator before using live
- Disable order confirmation dialogs (you need speed; discipline replaces dialogs)
Execution Workflow
BEFORE the setup triggers:
→ Position size calculated
→ Finger hovering over buy hotkey
→ Know EXACTLY where stop will go
AT trigger (candle closes above level, volume confirms):
→ Press buy hotkey (sub-1 second)
→ Immediately press stop-loss hotkey (within 2 seconds of fill)
AT Target 1:
→ Press "Sell 50%" hotkey
→ Move stop to breakeven
TRAILING:
→ After each 5-min candle, adjust stop (candle-low method)
→ Or let EMA trail handle it
AT end-of-day or stop hit:
→ Sell remaining position
→ Record trade in journal
10. Real Trade Examples (Walk-throughs)
Example 1: Opening Range Breakout — Long
Pre-market: Stock XYZ gapping up 6% on earnings beat. Pre-market volume 1.8M shares (8x average). On my watchlist as #1 pick. Pre-market high: $54.30.
9:30-9:45 AM: Opening range forms. High: $55.20, Low: $53.40. Range = $1.80.
9:47 AM: 5-min candle closes at $55.35 (above OR high of $55.20). Volume on this candle: 420K (vs. ~250K average in the OR candles). Volume confirmation: YES.
Decision: This is my ORB long entry.
Entry: $55.35
Stop: $54.30 (midpoint of OR — full range stop at $53.40 too wide at $2.00)
Risk: $1.05/share
Account: $50,000, risk 1% = $500
Position size: $500 / $1.05 = 476 → round to 450 shares
Target 1: $55.35 + $1.80 = $57.15 (1.7R)
Target 2: $55.35 + $3.60 = $58.95 (3.4R)
10:05 AM: Price hits $56.00. I’m up $0.65/share. Stop stays at $54.30.
10:22 AM: Price hits $57.15 (Target 1). SELL 225 shares at $57.15. Profit: +$405.
- Move stop to $55.35 (breakeven) on remaining 225 shares.
10:45 AM: Price at $57.80. Trailing using 5-min candle lows. Last candle low: $57.40. New stop: $57.40.
11:15 AM: Price pulls back. Stopped out at $57.40 on remaining 225 shares. Profit: +$461.
Total trade P&L: $405 + $461 = +$866 on $500 risk = +1.73R
Example 2: VWAP Pullback — Long
Context: Stock ABC trending up since open. It’s 10:30 AM. Stock at $88.50, VWAP at $87.20. No pullback to VWAP yet today.
10:35 AM: Price starts pulling back. $88.00… $87.70… $87.40…
10:42 AM: Price touches $87.25 (nearly at VWAP $87.20). Volume is DECREASING on the pullback (good — selling pressure is light).
10:45 AM: Confirmation candle — bullish hammer on 5-min chart. Low: $87.15, Close: $87.50. Lower wick touched VWAP, closed above it. Volume on this candle is higher than the 3 pullback candles before it. CONFIRMED.
Entry: $87.50 (close of confirmation candle)
Stop: $86.80 (below the hammer low / below VWAP)
Risk: $0.70/share
Account: $50,000, risk 1% = $500
Position: $500 / $0.70 = 714 → round to 700 shares
Target 1: $88.50 (prior high of day) = 1.4R
10:55 AM: Price bounces to $88.00. Holding.
11:10 AM: Price hits $88.50 (HOD and Target 1). SELL 350 shares. Profit: +$350.
- Move stop to $87.50 (breakeven).
11:30 AM: It’s lunch. I’m still holding 350 shares above VWAP with breakeven stop. I’ll let it ride — the stock is strong and my risk is zero.
2:15 PM: Volume returns. Price breaks $88.50 to new highs. $89.00… $89.40…
2:45 PM: Price at $89.60. Trail stop using 5-min candle lows. Current trail: $89.10.
3:30 PM: Stopped out at $89.10 (minor pullback). Profit: +$560 on remaining shares.
Total trade P&L: $350 + $560 = +$910 on $500 risk = +1.82R
Example 3: Failed Trade — What Went Wrong
Context: Stock DEF gapping up 3% on moderate news. Pre-market volume only 200K (2x normal — borderline). I’m excited about the chart pattern and put it on my watchlist anyway.
9:50 AM: Price breaks above pre-market high of $42.80 on… average volume. Not the 1.5x I normally require. But the candle looked clean.
My mistake: I entered anyway at $42.85.
Entry: $42.85
Stop: $42.20 (below opening range low)
Risk: $0.65/share
Position: 400 shares ($260 risk)
9:55 AM: Price hits $43.10. Up $0.25. I feel good.
10:02 AM: Price reverses. $42.80… $42.70… breaking back below the breakout level.
Assessment: The breakout failed. Volume was never there. My thesis is broken.
10:04 AM: I exit at $42.65. Loss: -$0.20/share × 400 = -$80 (-0.3R)
10:08 AM: Price drops to $42.10 (would have hit my full stop = -$260).
What I did right: Cut early when thesis was invalidated. Saved $180 vs. full stop.
What I did wrong:
- Volume on breakout was NOT above 1.5x average — I broke my rule
- Catalyst was “moderate” — not strong enough for a clean gap-and-go
- Pre-market volume was only 2x (borderline) — ideally want 5x+
- I entered before 10:00 AM on a breakout — violated my time rule
Journal notes: “Rule violation — entered without volume confirmation because I was excited about the pattern. Pattern alone is not enough. VOLUME CONFIRMS EVERYTHING.”
11. End-of-Day Routine
4:00 – 4:15 PM: Record All Trades
For each trade today, fill in:
Trade #___
Ticker: _____ | Setup: ORB / VWAP / Flag / Fade / Momentum
Entry: $_____ at ___:___ AM/PM
Exit: $_____ at ___:___ AM/PM
Shares: _____ | Risk/share: $_____
P&L: $_____ (____R)
On watchlist? Y/N | Volume confirmed? Y/N
Followed rules? Y/N | Emotional state: Calm / FOMO / Revenge / Disciplined
What I did well: ________________________________
What I'd change: ________________________________
4:15 – 4:30 PM: Daily Summary
DAILY SUMMARY
Date: __________
Net P&L: $_________ (____R total)
Trades taken: ___
Winners: ___ | Losers: ___
Win rate: ___%
Largest win: $_____ (____R)
Largest loss: $_____ (____R)
Rules followed: ___/___
Did I trade during lunch? Y/N
Did I revenge trade? Y/N
Did I hit max loss? Y/N
Compliance score: ___/10
4:30 – 5:00 PM: Prepare for Tomorrow
- Scan for tomorrow’s catalysts: Check earnings calendar (earningswhispers.com) for pre-market and after-hours reports
- Build tomorrow’s watchlist (max 5 stocks):
- Stocks that closed at/near highs on heavy volume (potential gap-up candidates)
- After-hours earnings movers
- Key levels for each
- Set pre-market alerts for each watchlist stock
- Review what worked today: Which time window? Which setup? Replicate.
- Identify mistakes to avoid tomorrow: Write ONE rule to focus on.
Weekly Review (Every Friday)
WEEKLY REVIEW
Net P&L: $_____ | Total R: _____
Trades: ___ | Win rate: ___%
Best day: _________ | Worst day: _________
Best setup: _________ | Worst setup: _________
Best time of day: _________
Rule violations: ___
Key lesson this week: _________________________
One adjustment for next week: _________________________
Monthly Review
- Review equity curve: Trending up? Consistent?
- Identify which setups to trade MORE (your edge)
- Identify which setups to ELIMINATE (negative expectancy)
- Check: Am I sizing correctly? Time to increase? Decrease?
- Calculate expectancy: (Win% × Avg Win) – (Loss% × Avg Loss) = $____ per trade
12. Checklists and Templates
10-Second Pre-Trade Checklist (Memorize This)
Before pressing BUY or SELL, run through:
1. REGIME — Is it trending, ranging, or chop? (If chop: DON'T TRADE)
2. LEVEL — Am I entering at a key level? (Not in no-man's land)
3. VOLUME — Does volume confirm? (>1.5x average? If no: SKIP)
4. STOP — Where exactly is my stop? (Must be defined BEFORE entry)
5. TARGET — Is reward at least 1.5:1? (If not: SKIP)
6. SIZE — Is my position size correct for the stop distance?
7. TIME — Am I in a high-probability time window? (Not lunch, not first 60 sec)
If ANY answer is NO → don’t take the trade.
Morning Watchlist Template
DATE: __________
MARKET BIAS: Bullish / Bearish / Neutral (based on futures)
VIX: ____
STOCK #1 (Primary):
Ticker: _____ | Gap: ___% | RVOL: ___x
Catalyst: _________________________________
Key levels: PMH $_____ | PML $_____ | PDH $_____ | PDL $_____
Plan: Long above $_____ / Short below $_____
Stop: $_____ | Target: $_____ | Size: _____ shares
STOCK #2:
Ticker: _____ | Gap: ___% | RVOL: ___x
Catalyst: _________________________________
Key levels: PMH $_____ | PML $_____ | PDH $_____ | PDL $_____
Plan: Long above $_____ / Short below $_____
Stop: $_____ | Target: $_____ | Size: _____ shares
STOCK #3:
Ticker: _____ | Gap: ___% | RVOL: ___x
Catalyst: _________________________________
Key levels: PMH $_____ | PML $_____ | PDH $_____ | PDL $_____
Plan: Long above $_____ / Short below $_____
Stop: $_____ | Target: $_____ | Size: _____ shares
The R-Multiple Tracking Sheet
Track every trade in R (risk units):
WEEKLY R-TRACKER
Monday: Trade 1: ___R | Trade 2: ___R | Trade 3: ___R | Daily: ___R
Tuesday: Trade 1: ___R | Trade 2: ___R | Trade 3: ___R | Daily: ___R
Wednesday: Trade 1: ___R | Trade 2: ___R | Trade 3: ___R | Daily: ___R
Thursday: Trade 1: ___R | Trade 2: ___R | Trade 3: ___R | Daily: ___R
Friday: Trade 1: ___R | Trade 2: ___R | Trade 3: ___R | Daily: ___R
Weekly Total: ___R
Running Monthly: ___R
Goal: Aim for +5R to +10R per week consistently. That’s achievable with a 50% win rate and 2:1 average reward/risk.
With 1% risk per trade:
- +5R per week × $500 per R = +$2,500/week = +$10,000/month
- +10R per week × $500 per R = +$5,000/week = +$20,000/month
The “When NOT to Trade” Checklist
If ANY of these are true, DO NOT ENTER A TRADE:
□ It's the first 60 seconds after the bell
□ It's between 11:30 AM and 1:30 PM (unless breaking news)
□ You've hit your daily loss limit (-3%)
□ You've had 3 consecutive losses today
□ You just had a big loss and feel like "making it back"
□ The stock has no catalyst and RVOL is below 1.5
□ You can't clearly define where your stop loss is
□ The reward-to-risk is less than 1.5:1
□ Volume doesn't confirm the move
□ You're chasing (price already moved 2%+ without you)
□ It's a Friday afternoon and volume is dying
□ Major news event in next 15 minutes (FOMC, CPI)
□ You haven't done your pre-market routine
□ Your emotional state is not calm (anxious, angry, excited)
The Expectancy Calculator
Run this at end of each month:
MONTHLY EXPECTANCY
Total trades: ___
Winners: ___ (Win rate: ___%)
Losers: ___ (Loss rate: ___%)
Average winner (in $): $_____ (in R: ___R)
Average loser (in $): $_____ (in R: ___R)
Expectancy per trade = (Win% × Avg Win) + (Loss% × Avg Loss)
= (___% × $____) + (___% × -$____)
= $____ per trade
If expectancy is POSITIVE: Your system works. Keep executing.
If expectancy is NEGATIVE: Something is broken. Review:
- Are your stops too tight? (getting stopped out, then it goes your way)
- Are your targets too tight? (cutting winners short)
- Are you trading at bad times? (lunch, chop)
- Are you revenge trading after losses?
Quick Decision Matrix
When you see a potential setup, use this:
| Question | Yes → | No → |
|---|---|---|
| Is there a catalyst? | Continue | Skip (no reason to move) |
| Is RVOL > 2x? | Continue | Reduce size or skip |
| Is volume confirming? | Continue | Skip (false signal likely) |
| Is it a high-probability time? | Full size | Half size or skip |
| Is reward:risk > 1.5:1? | Continue | Skip (math doesn’t work) |
| Do you have a clear stop level? | Take the trade | Don’t trade (undefined risk) |
Power and Pelf 