Thread by @OWSM_trader

@RichardMoglen talks to @RossHaber_ (Notes)

I must say Awesome wisdom, this lion is true to its name.

Link:

Insti quality+Big earnings+High liquid stock

Stair steps whole way up
Rule: closing basis
Tight closes
Goal: get into the 1st breakout

2/

Based on vols can sneak in early

Bill waited for end of the week to take decision.
23EMA & 65 EMA r significant.
21ema super extended abv 50dma then sell some.

3/

High RS & respect for moving avg.
Exit completely: 65EMA

Pocket pivot:
Solid clue of subtle accumulation
To buy before breakout
Buy 20%
Pocket pivot vols signature
Vol> down vols for last 10 days
Vol currently > HHV(Vols,10) sell vols

4/

Also, 5 day pocket pivot.
2-3*multiple of pocket pivot 5 is more effective.
S.L: 4Day EMA
Cris Katcher: Most successful trades he hit SL 6-7 times
Once up 20%, not oversize
Can b done in big outside day

5/

Tightening in price
If market in correction
Entire group in accumulation
Averages tightening up
Can add more here.

Take some 50% off >20% move
Look for stair stepping pattern, respécting major MA
Earnings+liquidity+chart: composition

6/

U need to name a base.
C&H & double bottom as long as u spot accumulation & distribution along the way.
Group+ earnings
30% frm highs vs 15%
Sneaking in early: keep a tight SL
u get more proper entry area
Oil, building, materials etc stay away.

7/
Most stocks break 50dma and come down to 65EMA
RULE: at mad highs, willing to give that much that it doesn't affect u.

Darvas: building little boxes along the way.
Straight up from the bottom is bad.
Jesse Livermore round numbers rule.

8/

Accumulation+tight area+low vols+MA punching up+big vols breakout: can create position
High RS+ Group setting up
Wedge+breakout: not good
Sud b proper handle
That's y shakeout happens
Bill: imperfection, so shakeout

Richi: important to look at leaders, they repeat all time

9/

Huge vols + obey MA

Stories help to stick & build conviction.
Love IPO U turn, or bases

Accumulation+ nice tight flag.
RS: 90+
Everything on closing basis
Sell on stalling move
B proactive in selling after big run and stall with big vols

10/

There's not an edge buying stock at 50dma and not holding it.
Nice tight action + 200dma not so far below.
If ranges r wider u got to b wrong more
Richi: funds buying.

11/
6 week base, no such thing.
Just a short consolidation.
Q: are we seeing accumulation ?
Just ask this question in consolidation.
So many stocks flows up in low vols and then later vols come up.

12/
17-21-23Ema combo, stock working up for u and u just watch it working.

U can take any trade on this planet if u have an edge + managing risk. It doesn't matter.

13/

Mike webster no 1 rule:
Cut ur loses-cut ur loses- cut ur loses !!! Quickly.

Rule 2: keeping ur money, not letting it get away from u and live to fight another day.

If u study it, understand it and follow it. It just works.

14/

Its similar to counting cards, sometimes the deck is not so hot. Same for stock.

Find a methodology that's tried and true that works.
Create rules and make ur own.
Look at ur mistakes.

15/
Rules sud fit ur personality.
Learn one thing well & that's it.
Don't jump to change ur methodology.
Sticking to one thing and doing it well.
Spend good 2-3 yrs.
Loose ur ego & get used to cutting loses.

***THE END***

one must go through the whole interview to learn.