All right welcome back everyone. Today we're going to be talking about something that you watch a lot of these videos. You may get sick of me talking about, but so so so important, and that is having a plan before you enter the trade. And the reason I'm doing this video.

I mentioned this a lot, but maybe you don't know the components you don't know how to approach. It., So it's going to be a quick video breaking down the best way to grade a trading plan.. All right, welcome back everyone. Sure like share subscribe, ring that bell to be notified as soon as we go live drop, a new video publish a new podcast.

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In my 15 years, we've seen nothing like the last year and a half.. It just continues to get wilder and wilder and wilder. Share with your friends.. I mean I think that, especially as we look at the inflation there's, so so many things going against you when it comes to you're making enough money to have a great life to provide something for your family.

There's competition in the job market, there's inflation there's! So many of these things, what's great about the stock market, is it's accessible to anyone.? It doesn't matter where you are in the world. Doesn't matter what your age is: race, color, creed, sex, it does not matter.. The stock market is available to everyone. And that's one of the greatest things I love about it is anyone can open a trading account.

Anyone can get started. Share with your friends. Speaking of getting started, check out the SteadyTrade team.. It's a mentorship program where I've devoted the last five years of my life doing 3000 webinars, 3000 okay.

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So anyway check out the SteadyTrade Team. Speaking of no days off. I'm doing YouTube videos when I'm sick. Anyway.

That being said, we're gon na talk about three steps to having a trade plan. And the ultimately, the number one is how much money you're willing to risk. - And this goes into the chart., So you'll hear me say over and over again have a plan have a Risk a risk, a goal, an entry, they are all based on key levels of the chart, but different stocks have different range., And this is one thing that trips up a lot of people seems kind of simple to me, but I see where it does trip people Up is they pick quite frequently too tight of stops on really vulnerable stocks because they don't have their position size calculated, properly. LGVN is today's kind.

A huge runner stock went from a low in the twos and threes all the way up to high of nine.. As of now day's, a long way from over., So you got ta, be able to you, can't be overly sized on stocks.. Listen if you've got a small account. In my opinion, you should not have a 1000 2000 shares of LGVN..

The nice thing about these stocks is even with a couple hundred shares. If you catch a $ 2 or $ 3, that's a very solid day for a small account have realistic, expectations., So calculate your max risk., And that number is a little different for everyone. But listen. I think that, at the end of the day you got ta have a risk that is based on your account size, but it's also a number: that's not going to screw you up mentally.

And that's why it's such a personal question. And there's position size calculators out There, but this is another kind of psychology thing.. I don't think I hear people talk about that. Much is even if whatever that number is say you got a $ 50,000 account.

I mean if you're losing 500 bucks, a trade that is not crippling., But if $ 500, a trade on a stop loss which you're gon na get stopped. It's part of the game. If that screws you up, if that maybe the producer will bleep this out, but if that pisses you off and puts you on tilt the rest of the day or the rest of the week, then that number is too big.. You have to have a number that when you get stopped you're like okay, I lined up the factors I used Tim's worksheets in the trading courses, I stacked everything up.

I took my shot and I took my loss and that's trading.. That's your number., And maybe you have above $ 500,000 account and $ 500 loss still pisses. You off., You got ta determine that number then set it based on the chart size. Your position properly, based on that.

Next thing to know, is a risk to reward ratio.. This is one of the big things that I preach, and I preach, and I preach, is that three to one risk to reward ratio. And when we do that, so basically, the idea behind that would be is going back to LGVN. As an example say, you were trading at high day break at five.

You were risking 450, your goal or I'm sorry, your stop 50 cents, a share.. Let's go back to that $ 500. Stop idea! So in this scenario, if you've got that 50 cents of risk, that means you're gon na be buying a 1000 shares so that if you do get stopped, that your $ 500 loss, let's assume you're good with that you move on.. Now what you have to do is decide.

Can I hit a goal of a buck 50 of upside? That's again, that three to one risk to reward.'Cause, if you're, just risking 50 to make 50 you'll never get ahead., Because you're gon na take losses. You're gon na be in that one step forward, one step back, idea.. The reason we look for three to one is that way. Even if you have a couple of losers and then you have a winner, you're still ahead.

So on a stock again like LBG, and you can see once it breaks by say: that's your buy you're risking 450 within seconds this thing's at seven plus.. So, yes, it's a real-world example, but the kind of when we're looking at these low folds with extreme range, you can reasonably say to yourself. This is the type of trade I could make and have a realistic three to one risk reward. Now, maybe it spikes to 650 immediately, say it slams back and you sell it six, which would be two to one.

At least it has the range and you have a realistic goal in that range. Next thing is always always always - and I will finish on this - you determine your stop and your goal before you enter., And I know you're gon na say that takes time to many Stocks move fast., I don't care okay.. If you can't get to the point where you can write down or type or I prefer, especially if there's newer trades, I want you're writing it down, typing it ,'cause. I want you to look into at that trade plan.

So that's a little tip there. Like back in my early days. I used to put it right on an index card and I would put it in the Function row of my keyboard so that that plan was staring me in the face so that when I started letting my stop slip, that index card was staring at me.. But anyway it doesn't take that long..

I know it seems like a long time, but if you can't commit to that, then I think you're being bit by fomo and you're chasing and you're getting all fired up and you're, probably gon na lose. Determine that risk. Determine that goal determine that entry based on a key level and stick to the plan, stick to the plan and stick to the plan. And then also last thing understand if you're not under the PDT, if you can trade freely, you can re-trade these stocks too..

So I know the PDT kind of screw stuff up, but if you're not under the PDT understand LGVN was a high day break this afternoon, it didn't break yanked hard, it might do it again.. So you can that's why I love these low float highly volatile stocks. They spike they re-spike. You can reenter and again for the third time, if you're, not under the PDT.

These are the best stocks to re-trade and get everything off your watch.. Then, if you are under the PDT, take your one shot a day: you're learning you're growing your account, but don't overtrade.. Because then what happens you put yourself in a bad position. You get locked out of your account and it just is what it is..

So all right, everyone goals, okay, Dollar, stops writing down your trades entries. Exits goals stops based on the chart.. These are all simple things that nobody well we'll say nobody does.. These are all simple, simple, simple things that all losing traders don't do..

They don't take the 30 seconds the minute. The two minutes to do this work. Then they're, the ones that say day trading doesn't work day. Trading is a scam..

Nobody makes money day, trading.'Cause they don't put in the work., Don't be that guy or that girl. All right check out the SteadyTrade Team would love to teach you all these stuff.. I know this is a five seven minute video. We go in-depth every single day drilling these things drilling these things drilling these things, and you won't be that person breaking your plan..

You won't be that person fomoing into trade if you join the SteadyTrade Team. Have a great day, we'll see you next time.