Table of Contents
In this interview, day trader and swing trader Mike Tedeschi sits down on the Desire To Trade podcast to unpack how he actually approaches markets—from running a day-trading room and newsletter to coaching traders on building real, written trade plans. Mike’s been at it for years, has blown up, rebuilt, and now focuses on grinding out gains with a process that survives changing conditions. He’s big on risk management, trade journaling, and avoiding boredom trades—the unglamorous habits that keep you in the game.
You’ll learn the exact signals Mike hunts intraday (think breakouts from ascending triangles with volume confirmation and momentum crossovers), how he adapts to up, down, and sideways markets, and why “do nothing” is often the highest-edge move. We’ll cover his risk-first sizing rules, the alert workflows that let him wait weeks for A+ setups, and the journaling routine he uses to plug leaks fast. By the end, you’ll have a clear blueprint to build your own rules, trade less, and execute better—without trying to pull cash from the market every single day.
Mike Tedeschi Playbook & Strategy: How He Actually Trades
Core Philosophy: Risk First, Always
Mike keeps the focus on staying in the game. This section lays out how he controls downside so the inevitable losers stay tiny while winners can compound. If you only copy one thing from him, copy this.
- Risk a fixed fraction per trade (e.g., 0.25%–1.0% of equity) and never exceed it.
- Place stops at technically logical levels (below structure for longs, above structure for shorts)—not at round numbers.
- If a stop would require more than your max risk, reduce position size until the risk fits; never widen stops to “make it work.”
- Cap daily loss (e.g., 2–3R). If hit, stop trading for the day to protect mental capital.
- Avoid clustering risk: don’t hold multiple positions with the same driver or highly correlated tickers at full size.
Trade Selection: A+ Setups or Pass
Mike filters hard for clean patterns and momentum confirmation. Here’s how he hunts high-quality plays and avoids boring trades that bleed accounts.
- Only act on pre-defined A+ setups; if the pattern isn’t textbook, skip it.
- Prefer breakouts from tight consolidations (e.g., ascending triangles) that formed on declining volume.
- Require a fresh high/low of the day or range-level break with momentum confirmation (e.g., RSI/momentum crossing up as price breaks out).
- Avoid “looks okay” trades during chop; no signal, no trade.
- Track win rate by setup type; cut any setup that underperforms for a full sample.
Entry Triggers: Clean Breaks, Not Hopes
Entries are about timing the confirmation, not predicting it. Use these rules to standardize execution.
- Enter on the actual break (close through level or trigger price) rather than anticipating the move.
- Use stop-limits or market-if-touched orders to avoid slippage on thin names.
- If price tags the level intraday but immediately rejects and volume dries up, cancel and wait for a new base.
- On gap-ups through your level, let the first 5–15 minutes set the tone; only chase if volume is heavy and pullback holds the breakout line.
Position Sizing: Scale With Volatility and Edge
Sizing is mechanical, so emotions don’t creep in. These rules keep each trade’s risk constant while adapting to volatility.
- Calculate shares from stop distance: Shares = (Account * Risk%) / (Entry − Stop).
- When ATR expands, reduce share count to keep Risk% constant.
- On A+ setups with statistically higher expectancy, allow full risk; on B setups, cut size in half, or skip.
- Never add to a loser. Add only on planned scale-ins after progress (e.g., +0.5R and retest holds).
Stops & Exits: Protect First, Then Let It Work
Stops go where the trade idea is invalid. Exits lock gains without micromanaging.
- Initial stop: below/above the base that just broke; avoid too-tight “I don’t want to lose” stops.
- After +1R, move stop to breakeven only if the structure confirms (successful retest or higher low).
- Take partials at +1.5R to +2R on fast moves; leave a runner to ride the trend.
- If the breakout fails on heavy volume and closes back in the range, exit remainder—don’t “hope” it comes back.
Alerts & Prep: Let Setups Come to You
Mike uses alerts to avoid staring at screens and forcing trades. These rules keep you patient and ready.
- Build a watchlist with exact trigger levels; set alerts slightly before and at the level.
- If a few alerts fire during the first 30–60 minutes, downgrade expectations and trade less that day.
- Review alert “clusters”: many names pinging at once often signal a risk-on window—be ready to act.
- Rebuild alerts weekly to match fresh bases and new momentum leaders.
Intraday Routine: Structure Your Day
A simple routine reduces randomness. Follow this flow to keep execution tight.
- Pre-market: update watchlist, mark levels, confirm catalysts/earnings dates, and set/verify alerts.
- First hour: only take A+ breaks with real volume; avoid revenge trades from the open.
- Midday: trade less; focus on retests and trend continuations that respect VWAP/structure.
- Last hour: look for secondary breakouts or clean flags that align with the day’s trend; carry only if the close confirms.
Swing vs. Day Trades: Same Logic, Different Pace
He applies the same pattern logic to swings with wider stops and more patience. Here’s how to adapt the timeframe without changing the playbook.
- Swing entries prefer daily breakouts from multi-week bases with above-average volume.
- Use a daily/weekly structure for stops; accept smaller position sizes to keep risk constant.
- Hold through normal pullbacks if the base retests and closes strong.
- For day trades, shrink stops to intraday structure and be quicker to take partials into extension.
Market Regimes: Adjust Aggression, Keep Rules
Different tapes require different throttle, not different principles. This keeps you aligned with the environment.
- Trending up: allow more simultaneous longs but cap sector concentration; let runners breathe.
- Sideways/chop: slash trade frequency, tighten criteria, and prefer range edges/retests over breakouts.
- Downtrends: either focus on relative-strength longs with ultra-clean bases or switch to short setups that break supports on volume.
- If your equity curve stalls for two weeks, cut risk by half until new momentum returns.
Journal & Review: Fix Leaks Fast
Mike treats journaling as non-negotiable. The goal is to identify and delete recurring mistakes quickly.
- Log every trade: setup name, entry/exit, stop, R multiple, reason to enter, reason to exit, and emotional state.
- Tag mistakes (chasing, too-tight stop, boredom trade) and tally weekly; eliminate top 1–2 offenders next week.
- Screenshot entries and exits; annotate where the thesis broke.
- Review winners to find common structure; double down on what’s actually working.
Anti-Boredom Protocol: Do Nothing Is a Position
Boredom trades are account killers. This section gives you a plan for low-opportunity days.
- If no alerts fire and your A+ list is cold, step away—no discretionary “maybe” trades.
- Limit yourself to a maximum of one non-A+ probe per day at quarter size; if it loses, stop trading.
- Replace impulse with process: scan, update levels, reset alerts, and prepare for tomorrow.
Execution Checklist: Make Every Click Count
A tight checklist removes hesitation and regret. Run this before each order.
- Is this an A+ setup I trade and recognize instantly?
- Do entry, stop, and targets align with the structure and my Risk%?
- Is the volume confirming? Is the broader market not fighting me?
- Are there upcoming events (earnings, data) that would invalidate the setup?
- Place OCO (one-cancels-other) orders so stops/targets are live the moment you enter.
Size risk first, then chase gains: fixed risk per trade always
Mike Tedeschi hammers one idea before anything else: protect capital by fixing your risk per trade. Pick a small, consistent slice of equity—think 0.25% to 1%—and build everything around it. That means the stop goes where the trade is invalid, then position size is calculated to match your preset risk. When the math says the shares are too many for that stop distance, you shrink the size, not widen the stop.
This turns every setup into a clean R-multiple decision instead of an emotional guess. A daily loss cap (like 2–3R) protects your headspace and keeps you from spiraling after a couple of losers. Because the downside is predefined, Mike can let winners breathe without micromanaging every tick. Over time, the compounding comes from enforcing the fixed risk rule, not from swinging for fences.
Let volatility guide position size and targets, not your emotions.
Mike Tedeschi treats volatility as the steering wheel for both sizing and exits. When ATR or recent range expands, he cuts share count to keep the same fixed risk, and he widens stops to a logical structure so noise doesn’t kick him out. In quiet tape, he can hold the same risk but take more shares because the stop distance is smaller, aiming for nearer, more modest targets. The math—not mood—dictates how much to put on and what the trade needs to deliver.
Volatility also sets expectations for how quickly to realize gains. In fast markets, Mike takes partials sooner and trails wider to avoid getting shaken out by normal big swings. In slow markets, he’s patient with targets and uses tighter trails because pullbacks are smaller. The point is consistency: the risk stays constant, while position size and exit behavior flex with the environment. That’s how he avoids overtrading hot days and forcing trades on sleepy ones.
Diversify by underlying, strategy, and duration to smooth your equity curve.
Mike Tedeschi spreads risk across different engines so no single theme can wreck his month. He’ll mix tickers from uncorrelated groups, balance momentum breakouts with mean-reversion fades, and pair intraday trades with multi-day swings. Each bucket has its own risk budget and rules, so one cold pocket doesn’t drag down everything. By decoupling bets, he reduces variance and avoids mistaking a sector slump for a skill problem.
Duration is a second buffer Mike uses to keep returns steadier. Quick day trades supply frequent feedback and incremental gains, while swing positions capture larger moves without constant screen time. When volatility spikes, he leans more on shorter-duration plays; when trends persist, he lets the swing book do the heavy lifting. The blend keeps his equity curve from turning into a roller coaster—and makes it easier to stick to the plan when one slice inevitably underperforms.
Trade mechanics over predictions: predefined setups, confirmations, and automated exits
Mike Tedeschi doesn’t try to outguess the market—he executes a playbook. He predefines the setups he’ll trade, writes the exact trigger and stop, and waits for the price to confirm instead of jumping early. Confirmation might be a clean break of a level on real volume or a retest that holds—if it’s not there, he simply skips. The edge comes from repeating the same mechanical actions, not from being “right” about the next move.
Exits get the same treatment: automated OCO orders handle targets and stop the moment he’s in. Mike uses trailing rules tied to structure, not feelings, so a runner can ride while risk stays capped. A short checklist before each order catches the usual errors—late entries, crowded catalysts, or missing volume. And after the trade, his notes feed back into the rules, tightening the mechanics one small improvement at a time.
Prefer defined-risk plays and strict process discipline during uncertain market regimes
When the tape gets messy, Mike Tedeschi tightens the screws instead of pressing harder. He favors defined-risk structures—clear stops, capped losses, and pre-planned partials—so a surprise headline can’t nuke the account. If the read is cloudy, he cuts size, raises the quality bar, and waits for clean confirmation instead of predicting turns. The mantra is simple: protect mental capital first so you can attack when conditions improve.
Process does the heavy lifting when clarity is low. Mike runs the same checklist every time—setup validity, structure-based stop, risk percentage, volume confirmation, and calendar risks—so discretion never drifts into hope. He limits the number of concurrent positions and avoids stacking correlated names, especially around macro events. If he hits a daily loss cap, he’s flat and done, no negotiation. The result is fewer trades, steadier equity, and a clear lane to scale up when the market finally starts trending again.
In the end, Mike Tedeschi’s edge is simple to explain and hard to violate: risk first, mechanics second, opinions last. He fixes risk to a small, repeatable slice of equity, places stops at structure, and sizes positions from the stop distance so every trade has the same downside. From there, he lets market regime dictate throttle—one playbook for trending, another for choppy, another for downtrends—so he adapts without rewriting his rules every week. He favors clean, high-probability triggers like ascending-triangle breaks to new highs of the day with real volume, and he stays out when those conditions aren’t present.
The real secret sauce is how Mike replaces willpower with systems. He writes a game plan, tags exact trigger levels, and uses scanners, watchlists, alerts, and bracket orders so setups come to him—even if they take weeks. He avoids news-chasing, journals every trade, and leans on coaching or a peer group to spot rule-breaking in real time. Whether he’s day-trading or swinging, the framework doesn’t change: defined risk, confirmation before commitment, partials on momentum, and a hard daily loss cap to protect mental capital.
Put together, that’s a blueprint you can run tomorrow. Keep risk tiny and consistent. Trade only the patterns you’ve named in advance. Let alerts, not boredom, call you to the screen. And when the market turns messy, do what Mike Tedeschi does—tighten criteria, shrink size, and wait for the next clean break to hand you a high-quality shot.
