Trading plan for 2022

“Your goal is to play superior defense. The minute you stop doing that you might be in for a big surprise, both emotionally and financially.” – Michael Martin


Trade less
Wait more
No random trades

Look at more stock charts regularly
Be more selective
5 star setups only
Focus on horizontal resistance/support lines and zones.

Look at charts at the end of the day and end of the week.
Don’t look intraday
Set buy, add and sell alerts always
Trade as planned only

Superior defense mode
Aggressive mode
There is a time to trade
There is a time to not trade and to stay in cash
Cash is a position

Scale in, scale out (progressive exposure)

Cut losses at
3%, 7%, 9%

Profit taking
20-30%
3 days momentum burst (sell on 3rd day)
At predetermined levels or trailing stops

Trailing stops
3-4 x ATR or
Trendline break or
Below yearly average

Use yearly average as trend filter
MA 365 (crypto)
MA 200 (stocks)
If above the trend is up. Look for bullish chart patterns.

Do what pros do
Keep improving
Stay focused
Stay interested
Stay disciplined

Do NOT do what the average Joe do. Do the opposite.
Do not average down
Do not stay fully invested at all times
Do not have low turnover
Do not keep losing stocks
Do not rely on hope
Do not get overexcited
Do not be greedy

If sick or on vacation
Decrease size or preferably go to 100% cash.

Habits to focus on:
Q3-Q4 2021
Cut losses early
Trade a lot
Read books at least 1 hour a day.

Q1-Q2 2022:
Fewer trades (wait for 5 star setups)
High turnover (sell 50% on day 3 momentum burst and wait for another 5 star setup)
Decrease portfolio volatility
Cut losses early
Read books at least 1 hour a day.

Q3 2022:
?

Hopefully by writing down my plans I can follow them better and break them less.

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