Finding key levels.

Lately I’ve noticed a lot of you guys have been asking why are @AdamSliverTrade and other League members levels a little different than the ones you’ve mapped out. Here’s a little information that will help you understand why and better the levels you create!

1. Find the daily range of the stock.

Measure the last 5-7 daily candles wick to wick (eliminating any outliers) and calculate the average move the stock makes.

A good example of a outlier candle that you would exclude:

2. Calculate 20-25% of the average daily range the stock moves.

The average range in the example above is about 2.00 (meaning that on any given day you could expect the stock to move 2 points)

20-25% of 2.00 = .40-.50

3. Place Key Level triggers 20-25% above and below the Market closing Price

In this example, You want your call and put triggers at key levels approximately .40-.50 away from the Market closing price.

Here’s FIVE Trading lessons I’ve learned after blowing Two trading accounts

I’ve found consistency in this market after learning these lessons. I really hope someone out there can relate to some of these lessons and become a better trader ✍️

Lesson 1: Journal Everyday 📓

Write down every single trade that you take. How did you feel when you were in this trade? What type of trade was it? Did you follow your system? What time did you take the trade?

If you aren’t big on writing use @tradersync

Going back and reading your trading journal will show you what works best for YOU. It will show you what time of the day do you normally kill it and what type of trades have a higher win rate. From there you discard what isn’t working and implement what is working.

Lesson 2: Have patience

Of course you need to have patience waiting for clean set ups, but the biggest thing you need to have patience with is this journey!

It takes real time and effort to build skill. That same approach you had waiting 4 years to attain a degree is the approach you need in trading. You jump in the game and see crazy P&L’s left and right, but you don’t see all the time and effort traders put into this.