Discover and read the best of Twitter Threads about #ADFPopQuiz

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#ADFPopQuiz Time !!

EVERY single stock trading strategy falls into 3 categories:

Breakout - stock breaks out of a range

Continuation - stock resumes a move after a post-breakout pullback

Reversal - stock reverses due to overextension

Which of the 3 has the highest win rate?
by the way here's a visual representation of each, for my fellow "iM a viSuAL lEaRnEr" motherfuckers. Image
Answer Time !!

Based on all the research done on Technical analysis in the last few decades (also confirmed by my own data tracking on LFs and LCs), the correct answer is C.

Reversal strategies have by far the highest win rate out of the 3, but at the expense of risk/reward.
Read 8 tweets
Each time u look at your PNL during a trading session (doesnt matter if it's red, or green), which part of your brain automatically activates, becomes hyperactive, and pulls bloodflow/oxygen away from other brain regions, leading to an increase in impulsive behavior.

#ADFPopQuiz
Answer time.

If u chose C (the Amygdala), u're correct.

In layman terms, it is the part of ur brain responsible for fight or flight related emotions such as fear, aggression/anger etc. It is MUCH more powerful than ur frontal cortex (the part that keeps u logical, disciplined )
The 2 parts are always engaged in a tug of war for dominance.

When the amygdala (emotional you) activates, ur prefrontal cortex (logical you) weakens, & vice versa.

Both cannot be in total control at the same time, & since the amygdala is much older & primitive, it is STRONGER
Read 12 tweets
On a more serious note. Here's another #ADFPopQuiz

Based on data & surveys gathered from the endless amount of DMs I received over the years, including all the traders I've interacted with, met, or even mentored, what was the #1 hurdle the vast majority of traders faced?
Quiz Answer time:

77% of people chose C, and they are all correct.

The #1 problem facing traders of all stages (beginner or advanced) is not strategy, executions, or lack of capital.

It is simply adhering to rules. THEIR OWN rules. And almost no one is immune to this curse.
Now I already made endless threads/tweets about why this happens and how to fix it (search my tweets on "amygdala", "primal" , "brain" for more details).

But in summary, here are the top 5 fixes for this issue:
Read 5 tweets

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