, 8 tweets, 2 min read Read on Twitter
Sharing a few thoughts on Directional Trading now that I've started Trading it in a small way. Mike Bellafiore always says that 'you are only as good as the stocks you Trade'. The full implications of this very profound statement are only now becoming apparent to me.
You have to identify the best Tradable Stocks every day and marry them with 'setups with an edge' to give yourself the best chance of making Money. At SMB these are called 'Stocks in Play'. There are many ways of finding these.
I am currently using methods like identifying stocks which had large moves the previous day and closed near the top or bottom end of the Range- 2nd day Plays as they are called, Stocks with a news catalyst, Stocks with a Strong Opening Drive at the open etc
I have seen some very interesting methods of identifying such Stocks by @SubhadipNandy who uses OI combined with Volitility studies and by @jyotibudhia who uses OI in conjunction with the relative Position of Price on the chart and how it opens. I find both approaches appealing
The Stock Selection has to be fitted with a way in which to Trade it- the Setup. SMB has well defined Setups to Trade these kind of situations- The Playbook- which provides an edge or Positive Expectancy. Both the Traders I have mentioned also have a well developed methodology
Finally of course is the execution of the Trade. The entry, Management, exit both profitably or for a small loss and the discipline this involves is the main difference between success and failure and requires to be honed over many many Trades
Previously I used to think that I should focus on only 4-5 Stocks and Trade opportunities only on them. But I find this way more logical and fruitful by way of the opportunities it presents for larger potential moves and Profits. It's much harder work but appears to be worth it
Of course this way of Trading is new for me so these should just be taken as my initial thoughts on this subject and in no way as something that has achieved any measure of success. Hopefully will be able to write with more authority in a couple of months
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Pran Katariya
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!