Executing on Sector Strength and Tightening Trade Management
• Late entry on early financial sector moves, with focus on improving readiness for pre-market planned setups.
• Adjustment to the ‘big ass fly’ strategy, shortening trade duration to capture rapid moves in small-cap names.
• Refinement of stop-loss placement, using volatility-based levels to prevent unnecessary stop-outs in choppy conditions.
• Review of missed healthcare setups, emphasizing the importance of rotating focus to emerging sector strength.
• Reinforcement of avoiding FOMO-driven trades, ensuring setups meet full criteria before execution.
• Implementation of post-trade review sessions, aimed at identifying execution gaps and improving future performance.
Summary
the team reviewed missed opportunities in the financial sector due to hesitation on early planned setups. Ernie emphasized the importance of executing pre-market plans without delay when confirmation levels are hit.
The ‘big ass fly’ strategy was refined, with an emphasis on shorter trade durations to capitalize on sharp moves in small-cap stocks. The team discussed refining stop-loss placements, introducing volatility-based adjustments to avoid being prematurely stopped out in sideways markets.
Missed healthcare setups were also highlighted, prompting a shift in focus toward sectors showing relative strength. Ernie reinforced the importance of avoiding trades driven by FOMO, ensuring every setup aligns with technical criteria before entering.
The session closed with a plan to implement post-trade review sessions, focusing on bridging gaps in execution and continuously improving decision-making processes.