Category Archives: Trading Rules

Trading rule #9

Trading rule #9

Only focus on 2 best play for the market open
(Reason being if we focus too many stocks at the opening, we will end up trading nothing)

How to find the best 2 stocks to trade:
– pre market mover ( big percentage )
– volume
– news

Scenario:
•Big Percentage premarket and hold to more than 30% before select open :
– wait for big opening dip around 9.45 then buy on U
– Hold for around 10-15 minutes as long as the trend didn’t break.
– lock in profit when it reach your target (eg. 20% profit)
– then watch for short after 10am (unless it is going higher)

•Big percentage premarket but dip to less than 30% before open:
– wait for small opening dip around 9.45 then buy on U
– Hold for around 10-15 minutes as long as the trend didn’t break.
– lock in profit when it reach your target (eg. 20% profit)
– then watch for short after 10am (unless it is going higher)

•The higher the percentage, the longer the U
•The smaller the percentage, the smaller the U before it takes off.

•Massive percentage premarket (more than 70%)
Aim for short after 10am ( be careful that it might squeeze if it is an all day MOMO)

Timothy Sykes profit.ly profits

Trading plan

Most people when they first started trading, they don’t have a trading plan. All they think when they go long or short on a stock is PROFITs.

What would most people do when the stock go against them? –>Leave it and hope that that stock will come back “This is what we call them a Bagholder ”

My trading plan:

1. Risk and Reward ( >3 Rewards to 1 time Risk)

2. Support/ Resistance, (Breakout vs break down)

3. Timeframe (Premarket 8am – 9.30am), Market open (9.30am to 9.45am), After Market Open (9.45 to 10.30), Normal Trading (10.30 to 1pm), End of day (1pm to 4pm)

4. Exit Strategy (Cut loss) (1% – 2%)

5. Lock in profit (7%-15%)

The above are my trading plan based on my experience on the market so far. (The trading plan will evolve as my experience grows)

Actual execution plan:

  • Only buy on reversal after dip at the opening (U shape) or else DON’T Buy
  • Only short on the top (or 2nd top) or else DON’T Short
  • For MOMO, only buy on first/ second up candle or the profit taking next leg up

Be DISCIPLINE or else don’t trade!!!!!


Timothy Sykes also done a good video explaining about his 7 Step Trading Plan as shown on the video below:

A 7-Step Program For Traders by Timothy Sykes

Timothy Sykes profit.ly profits

Learned something today – Learn to trade like you are in a big position size

Learned something today – Learn to trade like you are in a bigger position size

The problem that I have previously while training on small position size is that I feel like I can risk my small portfolio and trade crazy moves like:

  • Buy/ Sell premarket
  • Buy when the market open
  • Hold shares until the market open
  • Buy too much late when it’s ready for experienced traders to lock in profit
  • Short too much early when there is still MOMO and trendline didn’t break
  • Didn’t lock in profit on the way and when the stock starts to reverse, I hold until it reach my 1% or 2% stop loss.

What I will be doing now to rectify the problem above is:

Trade like I am in a bigger position size. I will assume that my position is size is multiply by 10.

Eg. If I am only trading with $1500 position size, I will assume that I am trading with $15,000. This will therefore make sure that I take the Profits and Loss seriously.

I will keep on working on this rule to make sure I will never trade crazy stuff.

Timothy Sykes profit.ly profits