Tweetstorm: Weekend learning Ross haber notes part 2:
@RichardMoglen did a fantastic job in this one. Relating concepts with charts is just so great.

Link:

Charts:

1. What a chart looks like
2. Then drop down to fundamentals
3. Earnings acceleration
2/
4. Sales picking up
5 annual: earnings
Bill told: estimates are conservative

ROE: 17%
Institutions sponsorship: pickup
Insurance, cos, trusts increasing their sponsorship
Quality of them is also important
Top notch mutual funds buying it.
Idea is to ride their good tails.
3/

How many funds ?
-big sponsorship
-increasing for quarters

*How much as too much?
Use it as secondary indicator
Smart & successful funds
Not necessarily the funds own the stock it doesn't mean that manager is great.
4/

One can see triple digit earnings growth even 6 quarters after topping out.

Pay attention to where leading stocks are.
Are more groups under accumulation ?

Relative strength line definition: It just the plot of ratio of price of stock wrto NIFTY 50
5/

**Relative strength & relative strength line :

Divergence btwn price and relative strength line.
Relative strength line making new highs before price breaking out is strong one.
Stocks can fail breakouts for 3 times too. Can go ugly. Goes with personality of stocks.
6/

Tighter smoother patterns are good.

RS line making new highs before breakout of the IPO base.

Big vols+RSL(divergence)+IPO: super liquid high priced IPO works great. That's a big catch
Some serious edge here.
Put sell stop and its done.
7/

Re-breakouts has been working.
Break out of early stage base with all CANLSIM characteristics. It breaks out and not hit 7-8% SL 7 out of 10 times.

Best ones buy straight away with follow through with high vols.
Relative strength line into new high grounds is big thing.
8/

Screen: up on vols (most important)
Sort by relative strength and check the list.
Pattern->group rank

Mike webster: IPO U-turns are one of the most successful bases.

Relative strength rating + expensive current price.
Find a group that looks interesting
9/

Weekly: top 5 relative strength stocks in a group.

No of stocks in portfolio:
60-80% of portfolio in 2-3 points
Buy points, R:R has an egde then get in
Spread out to 6-8 stocks
Fewer the better
When everything goes good and u don't have money to buy more then 11-12 stocks
10/

Stock picking is not the hard part, risk and emotions management is. Position size is most important.

There is no one who hasn't gone through a tough time.

Let's not be more than 20-30% invested unless u make progress.
Unless u don't show progress then
Never add further.
10/

Don't average down when u r getting out from cash.

Sell down to the sleeping point.
@RossHaber_ is simply amazing. Great learning from u !

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More from @OWSM_trader

19 Dec 20
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Having a growth mindset.

Covid-19: people went broke-people also saved much
spending would be unleashed
supercycle coming
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U r the architect of ur own life
TML: True Market Leader
How many TML's are extended?
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long term: super-cycle
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Currently, there is institutional adaption is high in Bitcoin
Never violate the trend.
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keep these as ur guard rail.

Crypto Update: Etherium might jump back.
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19 Dec 20
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Make trading strategies ur own.

We r in the interpretation business rather than a prediction business.
Rule: not to sell based on fear of losing profits.
Look for psychological indicators, put-call ratio etc.
Its just competition vs ourselves.
Your eyes wud b walking through the patterns after ur big practice for time.
Know the character of the stock.
No matter how great the fundamentals if the stock if its not forming setups it just doesn't matter. If u wanna look for character, look at the left.
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Have a tight and logical stops.
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How to protect profits by being a risk first trader ?

Look at the watchlist candidates and analyse how many are above 50dma.

Progressive exposure: u scale up when markets and stocks r doing right.
When things get wedged up, u get few flushes.
U have to learn everything to be able to do by urself.
Importance of mistakes and learning from them.
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Building the case apart from technicals helps build the full picture: conviction.
Read all signals, signs and the chart.
Its just a big game and u ride on the shoulders of the big funds.
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The art of managing winning stocks

Have plan to reduce on weakness
Best companies wan to up.
Best stocks can't avoid indexes
Market always fool u
Focus on wht u own and wht u wish to own.
Don't try to read too much into markets.
As vaccine goes out, more traditional companies getting into limelight.

Great trades don't require predictions.
U just have to see it and take action.

-->>Have a consistent routine:
-> weekend study
-> all fishing on weekends
-> u have full weekly bar
-> Sunday afternoon
U r always 4 days away from a potential rally(FTD).
Keep urself on the toes and keep training.
Once u catch a big name one time, u get hooked. U want to do that again.
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Repeating the same mistake is self sabotage.

By monitoring ur mistakes & continuing to work on urself u can minimise their impacts.

Key to generate above avg profits.
Your reality is shaped by your beliefs.
U don't trade the markets, u trade ur beliefs about the market.
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4WDDC: 0
5WDDC: 0 Image
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