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AllDayFaders
@team3dstocks
, 6 tweets, 2 min read Read on Twitter
If only traders understood survivorship bias, they would understand why I lose my shit each time I see trading advice that doesnt center around risk management. U dont master trading by studying those who "succeeded". U learn the most by studying those who DIDNT

#BearTipOfTheDay
That's why I ALWAYS ALWAYS emphasize risk management more than strategy, Risk/Reward more than winrate, and my favorite, EXITS more than entries. Because even though BOTH are important, only ONE decides if there'll still be money in your account the next morning

#BearTipOfTheDay
When I was new, just like everyone else, I wanted to study those who "made it". Nothing wrong with that, since u obviously wanna find out what works. But my trading didnt take off until I did the opposite & I started researching those who FAILED. What were they doing differently?
The conclusion was shocking. They ALL had SEVERAL big wins in their resumes. They ALL knew WHERE and WHEN to short/buy. In fact many had winrates above 80%. So contrary to popular belief, they KNEW how to trade. They KNEW how to make money. THEY JUST DIDNT KNOW HOW TO KEEP IT !!
The bane of every great trader who stumbled, is always that one (or several) losses that were simply too big to recover from. You can be right 29 trades in a row from 29 great entries, and give it all back from ONE bad exit on the 30th trade. So much for that 97% win rate.
So dont just study those who "bank everyday since trading is easy". Study the other 90%. Find out what they did wrong, INSULATE urself from their mistakes, THEN study the 10%. Defense BEFORE offense.. Risk mgt is king. U cant "bank everyday" if u have no account

#BearTipOfTheDay
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#BearTipOfTheDay

More from @team3dstocks see all

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AllDayFaders
@team3dstocks
I get this DM SO damn much. "ADF how do I cut through all the noise & find consistency"

FOCUS on ONE thing!

Find a strategy/setup that is:

1 simple
2 common
3 DEFINABLE
4 winrate >50%
5 RR >3:1

then EMERGE urself in it until u MASTER it. Burn everything else

#BearTipOfTheDay
There are SO many strategies out there. SO many setups, SO many "mentors". U simply cant expect ur brain to digest all of that. u'll have too much conflicting info. Most fail more from information overload than ignorance. Just pick ONE thing & fucking master it.

#BearTipOfTheDay
2 trades a day, a 50%+ winrate, a 3:1 RR & a max loss of $50 will turn ur $2K acct into $4K in just a month (no fees). ALL u need is a 50% winrate & the discipline to keep ur RR at 3:1 or higher. Easier said than done but u get the point. Focus on RR optimization
#BearTipOfTheDay
Read 3 tweets
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AllDayFaders
@team3dstocks
I can give u SEVERAL signals to look out for, but my rule of thumb for figuring out if supply (bears) or demand (bulls) is simple:

if u cant tell that Bears are in control, then they are not.

Done. It's literally that simple. My only exception is parabolic (blowoff) moves.
Most ppl like to short strength or try to guess the top. The result, far too often they risk blowups just to make pennies or breakeven. I dont anticipate shit. I LET the stock SHOW me that it is weak, THEN I attack. I want to get in when bulls ran out of ammo. clean all day fades
A successful shortseller hunts like a lion. Dont be fooled by action packed and dramatic lion documentaries. REAL lion hunts are BORING. They dont attack the alpha Bull when he is strong & mighty. They WAIT for him to tire, to wear down, to exhaust. THEN they go for the jugular.
Read 5 tweets
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AllDayFaders
@team3dstocks
Going through my usual weekend routine (cleaning up the inbox/catching up on DMs etc.) & almost every question this week is on the same topic (fundamentals & faders), so im going to post a thread to answer this again. Grab some cofee & let's begin. Get ready to have feelings hurt
Recently, as most have already noticed, people have been going around teaching absolute GARBAGE about fundamentals & filings. Teaching things that are 100% flat out WRONG. Sure enough, newer traders who dont know any better & trusted these ppl, blindly followed, and got WRECKED.
Which is why I get so enraged when ppl who have NO CLUE what they're talking about, try to TEACH, instead of LEARNING first. Everyone wants to be a teacher these days even when they're NOT ready, without even realizing that their mistakes are costing people MONEY and BLOWUPS.
Read 11 tweets

Related threads

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Vishvesh
@Vishvesh03
The first thing you should understand is what is your own personality. Then look for #trading systems, which suits your personality. Most #traders fails at this very first and basic step.
D reason i made this remark. Coz oflate i hv had a chance to understand lot of #traders around country Each trader has unique approach and it was nothing but what suits they personality. Initially i thought its good to knw lot of methods Bt then i realized its best to knw 1 self.
Method was function of 3 things
1. Personality
2. Trading Capital
3. Return Expectation

Here #risk is part of personality, so is patience. And discipline is something one cant live without. All of them are very disciplined. Arrived at their method after lot of self search.
Read 8 tweets
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Chris Geidner
@chrisgeidner
Each time I see this ...
... all I can think about is:
Others are going here tho, which also makes sense:
Read 3 tweets
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HMK alias MANOJ
@scorpiomanojFRM
#TRADING Powerful combination : Weekly floor pivots and daily Camarilla pivots; Weekly upper floor pivots + daily Camarilla S3 confluence zone acts as a solid support zone. Weekly lower floor pivots + daily Camarilla R3 confluence zone acts as a solid resistance zone....
.... Backtest results on all FNO underlyings since Feb 2019 on 5 min TF
Annualised returns 118%
Max drawdowns -3.7%
Profit factor 2.3
55% winning trades.
Edge...... Edge lies in an important pre-requisite for taking trades based on above pattern and ofcourse exits....
.... Can look at the long and short illustration charts and can find out easily what is the pre-requisite; will leave it to viewers.....
Have proper risk management in place.
Read 3 tweets
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HMK alias MANOJ
@scorpiomanojFRM
#TRADING INTRADAY HTF_SR method Another Eg. #BATAINDIA daily / 1hr /5 min - Conclusion - Key level to watch out for 1363-1365; if price action bearish at this point, shorting suggested with stop of 1370; if price action bullish at this point, long suggested above 1365...…...
for a quick scalp till 1375; however above 1365 advised to wait to see how it reacts to the 1375 resistance line; if an bearish price action happens here, short suggested around 1370-1375 with stop of 1385; if price breaches 1380-1385.....
long suggested with stop of 1370. Try practicing this in as many charts as possible to get a hold of this method "Higher Time Frame Support and Resistance method" (HTF_SR). With proper risk management and defined rules, you can see vast improvement of your performance.
Read 3 tweets
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Vishvesh
@iamVishChauhan
In last one week I have got n number of request
1. learning Options
2. learning TA
3. learning Python
4. Tips providing
5. please how can I get your service
6. Manage my money
And worst if them all
7. I have lost lots of money please help me recover.
The problem here, knowledge is widely Available, google it and you will have everything available. But most people want to still know best book, best method, best way to not lose money. I am sharing my thoughts to suggest that, it takes lot of time to become consistent profitable
All these people are fine individuals and very excited about prospect to learn from someone else's mistake. But there are people who might be looking for short cuts. Trust me just one good (any book) on any method is the first step to start learning in that direction
Read 15 tweets
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SalsaTekila (JUL)
@SalsaTekila
/1 THREAD:

Probabilities is the most misunderstood concept in #TRADING IMHO.

To those who haven't had some sort of gambling background, it may not seem obvious, but strike-rate matters A LOT more than most people think.

READ AND MAKE SURE TO UNDERSTAND IT!
/2

First, converting REWARD:RISK into decimal odds properly is crucial:

2:1 R:R = 3

1:2 R:R = 1.5

formula: ( [REWARD + RISK] / RISK = decimal odds)
/3

Then, convert decimal odds into percentage odds:

1.5 = 66.7%

3 = 33.3%

the 'percentage odds' is the STRIKE-RATE required for your trade to be a 50/50 gamble, assuming you considered SLIPPAGE and FEES when calculating your R:R ratio (very important).
Read 5 tweets

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