VIDEO: SPY weekly EMA12 guide lost and what I did in reaction. Can the pendulum swing back to Semis and memory to maintain long term supports? chartguys.com/watch?v=WZST4p…

3 Scale-In Strategies (From our blog, by ChartGal Dinz) In general, I don’t really recommend scaling into trades. I prefer to have a level that is important enough for me to play off of, or see a bounce off of. However, there are sometimes situations where there is value in scaling into a position, both psychologically and monetarily. 1. First, let’s get out of the way why I don’t like scaled entries - if only to highlight how important the plan is when creating a tiered approach. Oftentimes I associate scaling in as adding to a losing trade. Continuing to buy when the trade is going against you, and more often than not this involves some sort of hope strategy on the part of the trader that if they throw enough money at the trade eventually, they’ll get out breakeven. So as long as we plan the trade with a scaled approach, and the entire risk of the trade is taken into account during the planning, and we don’t go over our planned amount, then scale-ins can definitely have their place in a trade plan. Buying the Higher Low. This actually kills two scenarios with one stone. The first is for a back burner setup, and the second is a version of that, but with the wedge pattern rather than the RSI. BackBurner Setups - using shorter term extreme RSIs in order to make an entry that is in line with the longer trend (i.e. using 5 min oversold to buy an hourly higher low in an uptrend) can use the tiered approach. This helps because the momentum can be on our side, even if we can’t necessarily judge the exact low for the higher low. The key in this instance, is to only add while RSI is extreme and gets more so. Once any sort of bounce plays out, the conditions that were there for you to tier an entry no longer exist, and therefore no more additional scales make sense. As an aside, the website offers plenty of material if you're interested in learning more about the BackBurner Trade Strategy, and we even made our very own BackBurner Indicator for TradingView! 2. The second situation is one where we are looking to buy a higher low but are doing more the slow wedge-like approach, and there is often (whether a wedge or a flag) a quick dip to break support before the trade goes our way. This is the entry that can really do psychological damage, as many traders will enter on the consolidation, and then if we form an equilibrium, or a slightly higher tick, they will stick the stop below the low, only to get stopped out and then see the trade play out. So, what can we do? Well let’s say you have this happen to you consistently. And let’s also assume your regular position size for stock XYZ is 100 shares, with a tight stop looking for a wedge like play into an hourly higher low. But you always get stopped out, only to FOMO back in and then your tight stop is no longer quite as tight, you’ve already taken your loss and now you’re doubling down on a trade. Well, what if instead, you buy 50 shares of XYZ where you normally would. And then when we break support by a little bit (ticker depending) instead of stopping out, you add 25-30 extra shares, then give a little extra wiggle room on your stop. This would make it so that you have a similar overall risk on the trade, a slightly smaller reward, but you take out the part where you have to FOMO back in with a less than ideal setup. You are basically anticipating the quick break with not a lot of follow-through. (I will put out another blog as requested on how to identify follow-through). 3. The third time I like scale-ins, is right when it’s near your level. While I don’t love adding to a losing trade, I don’t mind taking a starter position, then adding to a winning trade. This will be highly individual depending on personal trade styles. But if you have an area where you are looking for an entry, and then you get your entry, your reaction, and take a starter at your level to see if you get the follow-through you want, then adding on a pullback into a higher low (or lower high if shorting) can increase your exposure to the trade once you already have some confirmation that a level is playable. It’s like dipping your toe in the water, feeling that it’s nice, then diving in.

The most powerful feeling in trading comes from self confidence in your own abilities. Everyone starts by wanting to follow what other people are doing. Tell me what to buy, tell me how to trade, which is a logical place to come from with no experience. But once there is enough experience, success and repetition, you reach a spot where: - You dont care what anyone else on here thinks about a certain name/setup. - You gain confidence you can do this for the rest of your life. - You feel like you can create money from your fingertips. This is the phase where keeping your ego in check is essential...

Life and Trading Lessons from the yard 🧑🏽‍🌾

Throwback to a trip near Santa Fe, talking about ways to improve your trading mindset.

Them leaves though

One of the most important things about becoming a trader was being told my entire life that I could do or be anything I wanted to. Decades of confidence and reinforcement. How else could someone fully believe in the wild notion they can succeed where 99% fail. Thanks Mom and Dad 😆

RSI is a great tool to use within your trade game plan. Learn these four signals and you’ll get a lot more out of it.

Semiconductors and memory continue to struggle at the lows while the "b-team" pushes to new highs. Do we have fresh red flags in the AI trade? @junglefunk_ looks at this and more in our midweek check in: youtube.com/watch?v=pCspx5X5…