🔍 RSI Divergences

💎 Premium and Discounts Zone (Golden Zone 0.615)

📈 VSR (V-Shape Recovery) Near Supply and Demand Zone
Indicates the presence of institutional buyers.

📊 Supply Zone and Demand Zone
Creating imbalances, breaking structural levels, and collecting liquidity.

📉 Break of Trendlines

📏 EMA Support and Resistance

💧 Liquidity Sweeps (Inducement Sweeps)
It’s optimal to long or short after price has swept liquidity, or that zone will be a liquidity point.

🔄 Trade Directions of Market Using OB, Trendlines, and EMA (50 and 200)

🔄 Stochastic RSI Reset

Valid Major CHoC (Change of Character) is after an order block has been broken and a major demand has been tested. Minor CHoC is less effective.

🔐 Always Have Your Entry and Stop Loss in Every Trade

🔎 Watch Out for W and M Patterns

📉 Don’t Focus on Timing the Top and Bottoms, Rather Risk vs. Reward

🕯️ Check for Wicks

🛑 Stop Getting Greedy (Take Profit or Someone Else Will Get It) and Too Fearful (Buy)

📈 Follow the Market Direction

🤖 Trade Like a Machine, If Not, Emotions Will Alter Your Trades

🗺️ Check Liquidation Map Zones, Aggregated Liquidations

💹 Check Funding Rates

1. Set Clear Goals 🥅:

• Determine Daily Profit Target 💵: Decide on a realistic amount you aim to make each day. This should be based on your trading capital and risk tolerance.
• Stop Trading After Reaching Goal 🛑: Once you achieve your daily profit target, stop trading. This prevents overtrading and helps you lock in your gains.
• Value Your Time ⏰: Recognize that time is your most valuable commodity. Use your time wisely by not spending it all on trading. Enjoy other activities once you’ve met your goal.

2. Always Use Stop Orders 🚦:

• Set Stop Orders with Every Trade 📉: A stop order automatically sells your position if the stock reaches a certain price, limiting your losses.
• Example of a Stop Order 📝: If you buy 100 shares at $50, set a stop order at $49.50. This means if the stock price drops to $49.50, the order will execute, and you will limit your loss to $50.
• Do Not Alter Stop Orders ❌: Stick to your initial stop order. Changing it mid-trade can lead to larger losses and undermine your trading discipline.

3. Lock in Profits 💰:

• Take Partial Profits Early 🥇: As soon as the stock moves in your favor, take some profits off the table. For example, if the stock goes up to $50.50, sell 50% of your position.
• Adjust Stop Orders to Break Even ⚖️: After taking partial profits, move your stop order to your entry price to ensure you do not lose money on the remaining position.
• Scale Out Profits 📈: Continue taking profits as the stock price increases. For example, sell another portion of your position if the stock reaches $51, and adjust your stop order higher.

4. Manage Winning Days 🌟:

• Stop Trading After Hitting Profit Target 🏁: Avoid the temptation to continue trading after reaching your profit target. This helps in maintaining a winning streak.
• Prevent Turning Winning Days into Losing Days ⚠️: If you keep trading after reaching your goal, there’s a risk of losing the profits you’ve made, or worse, ending the day in a loss.
• Psychological Benefits 🌈: Ending the day on a high note boosts your confidence and helps you approach the next trading day with a positive mindset.

5. Avoid Revenge Trading 🛡️:

• Limit Number of Trades 🔢: After a few consecutive losses, stop trading for the day. Peter suggests stopping after three losing trades.
• Control Emotions 🧘: Revenge trading occurs when you try to recover losses by taking more risks. This usually leads to larger losses.
• Accept Small Losses 🤝: Understand that losses are part of trading. Accept small losses and avoid the urge to make them back immediately.
• Preserve Capital 💎: Protect your trading capital by avoiding emotional and impulsive trades. This ensures you have the funds to trade another day.

By following these detailed rules, you can build a disciplined and structured approach to day trading, increasing your chances of success while minimizing the risks.