SchlappyTrader Academy

Plan the Trade, Trade the Plan

Every trade needs a thesis: a specific reason WHY you are entering, and exactly WHAT will make you exit.

1. The Thesis: "I am buying X because it broke resistance with high volume."
2. The Invalidation Level: "My thesis is WRONG if X drops back below support. I will sell at $Y." (This is your stop loss).
3. The Target: "If the breakout continues, historical resistance is at $Z. I will take profits there."

Scaling Out: You don't have to sell all at once. You can sell half at your target to lock in gains, and move your stop-loss up to break-even on the rest (a "risk-free" trade).