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How To Properly Execute On Your Trading Plan


As you may have noticed if you have watched enough of these videos throughout the past year if we like to find a trade setup with only one key level to monitor and that’s for good reason. Once you get too many levels crowding your screen, it becomes sensory overload and you don’t know which level to base your trade off of. That’s where creating a plan comes in to play.

Take a good look at the video below and pay special attention to us creating our trading plan based on the one level we have marked on the stock. In the case of International Gaming Tech (IGT), we have one key level marked and from there, we then can go into our trading plan, which can often be a two sided plan as you will see.

For IGT, the main level we are watching is 30 as a support level. However, just because this is a support level does not mean we blindly take calls on a bounce off this level, quite the contrary. This levels indicates where we need to zero in our focus and pay close attention to what price action is telling us.

A common mistake I see traders make is when they create their plan, they become robotic about it, as in price comes to support and they automatically take calls, even if price action tells them that they should rethink that move. Your plan is more like guardrails than it is instructions on what must be done.

Levels give you a point on the chart where you need to zero in your focus so you can see how things like price action or volume are playing out to dictate whether or not you should enter a given trade. This is why you often hear me in my videos say things like, “if prices fails here” or “if price rejects here.”

Just because we find a meaningful level, doesn’t mean the market is going to react the way we think it will. So, in the case of this trade, we know we need to pay attention to when price gets around 30, but we must also pay attention to how price reacts to this level in order to give us the green light to enter calls, puts, or avoid the trade all together.

Interested in learning more about this process of planning and executing on a options trade? Be sure to watch the video below and if you want an even deeper dive into my trading strategy, don’t forget to sign up for my trading community with the link at the bottom of this article.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

This year is drawing to a close, make sure you’re turning the corner on your trading to position yourself to win all 2024. Sign up today! Until then…

Good Luck With Your Trading!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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