Tightening Execution and Reinforcing Sector Focus
• Consistent hesitation on early-session breakouts, particularly in the tech sector, resulting in missed entries despite clear signals.
• Refinement of stop-loss strategies, implementing ATR-based dynamic stops to better manage risk during increased volatility.
• Review of profit-taking discipline, with several trades closed prematurely, cutting short potential gains on confirmed trends.
• Shift in focus toward small-cap healthcare stocks, after mid-week data showed increased institutional buying and volume surges.
• Emphasis on avoiding overtrading during midday sessions, where choppy price action led to a lower win rate and increased risk exposure.
• Commitment to pre-market preparation, ensuring readiness for fast-moving opportunities and reducing hesitation at open.
Summary
the team reviewed execution across the previous week, focusing on consistent hesitation during early-session breakouts, particularly within tech names. Ernie stressed the importance of pre-market preparation and being ready to act decisively when trade signals align.
Refinements were made to the team’s stop-loss strategy, moving to ATR-based dynamic stops to better accommodate market volatility and reduce unnecessary stop-outs. There was also a review of profit-taking, with an acknowledgment that some trades were closed too early, sacrificing additional upside on solid trends.
The team shifted sector focus toward small-cap healthcare stocks, following data showing increased institutional participation and volume spikes. Ernie emphasized the need to avoid overtrading during midday chop and reinforced the value of maintaining patience until high-probability setups emerge.
The session concluded with a renewed commitment to structured pre-market routines, ensuring the team is ready to capitalize on key opportunities without hesitation.