Think trading process | stockbee


Think trading process

Think process

Profit is an outcome of following a trading process.

If you want to be swing trader you need well defined process. You want to be position trader you need well defined process. You want to be a day trader you need well defined process.

Define your trading process, tweak it till you are satisfied and then run it again and again and again.

Process is a sequence of steps you need to do to achieve your trading goal.

Once you establish a process it is just a matter of repeating it daily or weekly.

If you do the same process thousand times you will build procedural memory. And you will be on autopilot.

Do the exact same shit at exact same time, in exact same sequence , using exactly same tools and you will become that shit expert.

There are thousands of trading  setups possible. We have discussed hundreds of them on the Stockbee member site in past few years. Just pick one or two and then just define the process and refine and customize it to fit your own style. Some like to take quick profits, some like to hold for longer swing, some like pullbacks, some like breakout. Some like low priced stocks, some high priced stocks . There are setups for all of them.

Once you select your style focus on process building. When you define the process you will no more have unresolved questions because in the process building phase all of them would be answered.

Do not jump from setup to setup.

Define yourself , position trader, scalper, swing trader (3 to 5 days), swing trader (1 to 6 week), buy and hold....

And then stick to it and beat the shit out of the process.

You should have all scans setup.

You should have all your computers setup.

You should have all tools required to trade like position sizing and so on setup.

You should have your setup idea well setup in your mind. Where am I going to enter, where am I going to put the stop, where am I going to exit, how much risk am I going to take.

Process , process, process..

What is pre market process

What is during the market hour process

What is post market process...

If you want to develop your own edge think process...


bblogger said...

Dear Pradeep,

Since I know your website, this is my second quarter to trade earning (PEAD). As I know, Earning EP is the same as PEAD. Currently I mainly trade Earning EP. I want to ask you two questions.

1) I mainly use Big Volume, Big price increase and good earnings to screen stocks. I come up with a couple of trading candidates almost in most of the day. Within these candidates, I try to buy the most profitable one. I current hold 5 stocks using leverage in my portfolio. But I can still find attractive potential candidate in most of the day. This is the problem, "Too many Choices". As my first quarter earning trading experience, I jump around stock to stock, end up didn't earn any profit. So this quarter, I try to hold the potential candidate for a while, wishing around 100% increase within few months. But the temptation is big to see the new potential trading candidate come up. How do you fix this problem? (I know that you trade Earning EP as well.)

I have read your blog, use different criteria to lower to narrow the stock list. But still too much trading candidate, for example, DWCH, VOXX, CMCO, KCTT, KTCC, SANW etc.

2. How do you trade Earning EP? You hold it tight? or trading from stock to stock?

P.S. I love your site very much!
Thank You!

Pradeep Bonde said...

You are doing well so keep that process.

In a bull market there are always more opportunities than one can buy one has to focus on what fits our model.

One of the things you can do is take partial profit on half position and let rest run.

That way you will be able to put in more trades.

I trade them for short term hold. Occasionally will hold them longer.