I started swing trading 25. June, so I'm still new. I trade breakouts and trend following, but I only place trades when the market is closed. Stop buy orders and I would call it anticipation entries.
I started paper trading 5.000 USD and this is my journal so far: 1 week ago i was +200...
https://preview.redd.it/15jbdecjveuh1.png?width=1079&format=png&auto=webp&s=bdc2bebf56e2bbc01356908eb9aa8c9f586080a1
I'm trying to build a simple system to help me decide when to trade normal size, when to cut my risk in half, and when to just sit on my hands.
Right now, I look at the SPY 10D and 20D EMA, but I also recently started tracking S5FI (the percentage of stocks above their 50 SMA).
* S5FI over 50 and SPY above the 20D EMA = normal risk (1.5%).
* S5FI between 30 and 50 or SPY below 20D EMA = cut risk to 0.75%
* S5FI under 30 or SPY under the 50D EMA = Sit in cash and do nothing.
I am not enforcing it 100% - e.g. if SPY is just barely below 20D EMA, but the setup is A+ i might take 100% position.
I am very open to feedback and hear what you guys are doing