Enhancing Reaction Speed and Sector Allocation Strategies
• Delayed entry on tech sector breakout trades, highlighting the need for quicker reaction at key price levels.
• Adjustment to the ‘big ass fly’ strategy, focusing on early exits during mid-morning reversals to protect profits.
• Refinement of watchlist selection, adding small-cap healthcare stocks that displayed unexpected pre-market volume surges.
• Review of stop placement tactics, shifting toward a more dynamic approach based on real-time support levels instead of fixed percentages.
• Discussion on overtrading during midday consolidation periods, reinforcing discipline and patience to avoid low-quality setups.
• Implementation of pre-market execution drills, designed to improve readiness and reduce hesitation on validated trade signals.
Summary
the team evaluated the missed early opportunities on tech sector breakouts due to delayed entries at critical price levels. Ernie emphasized the importance of increasing reaction speed and executing pre-planned setups without hesitation.
The ‘big ass fly’ strategy was reviewed, with a new focus on taking profits earlier, particularly when mid-morning reversals threaten open gains. The watchlist was updated to include small-cap healthcare stocks showing strong pre-market activity, expanding sector focus beyond tech and financials.
Stop placement techniques were discussed, shifting from fixed-percentage stops to dynamic levels based on live support zones. The team also addressed issues with overtrading during midday sessions, reinforcing the importance of patience and focusing only on high-probability opportunities.
To close the session, Ernie introduced pre-market execution drills aimed at sharpening the team’s readiness and ensuring more decisive action when trade criteria are met.