1. New Traders:

It's natural to focus on "how much money you're going to make"

Which trade is going to make you that gain $$$

The money money money 💰💰

But your gains are burried in your losses

Let's approach this from the losing side

(THREAD) 👇

2. Our brain is naturally not wired for Stock Trading, so it takes time to rewire

Ever held to a losing trade and just couldn't let go till got worse?

Ever sell a stock too soon for fear that it may come back?

Ever turn a winning trade in to a losing trade?

These are FEARS

3.

-Fear of the unknown
-Fear coming from previous experiences
-Fear of missing out

That profit you took only to watch it go even higher after u sold

That stop loss you took only to watch it reverse

That big loss you were holding that reversed and u got bailed out

Read 6 tweets

Gustavo

@TradeThePattern

21 Oct

Filled some $CGC In to the 13-20 Buy Zone

Keeping a tight leash on it ✅

$CGC hard stop set $19.50 @ break even

Not a lot of follow through on setups today it seems, very choppy

It either goes or it doesn't

I ♥️ Break Even Stops 🙂

Borderline about to get stopped out on $CGC

And that's completely ok, not a lot of follow through on setups today

Know when to scale back activity

Protect capital should be #1

Read 4 tweets

Gustavo

@TradeThePattern

20 Oct

RSI is not a buy and sell indicator ❌

-Relative Strength Index
keyword = Strength

A stock can remain Overbought or Oversold indefinitely

You don't need RSI to tell you OB/OS

When the distance between Price, 20sma & 200sma become equal, you're getting close to OB/OS

Buying or selling on the mere fact that RSI is overbought or oversold will eventually get you a Net Loss, the probabilities will eventually catch up.

Price, Volume and key Moving averages will do the job

Keep it simple 👌

#Trading #Stocks $JKS

$PTON is one of many examples

If you sold on the mere fact that RSI went over 70 and waited for it to become oversold to get back in..

You missed the entire run

Read 4 tweets

Gustavo

@TradeThePattern

29 Apr

How to gauge risk for a complete newbie: #Stocks

If you've hesitating, second guessing or wondering where it is a good price to enter a stock while keeping risk low ect.. .

Here is a simple method you can use to gauge risk.

I will keep it very simple, so lets go!

Thread 👇

First thing is first, make the 20sma and the 200sma (simple moving average) your friend.

What a moving average does, it simply smooths out the direction of price over the last 200 candles or 20 candles on a chart:

It is as simple as that

To keep this simple, we'll be using the 20sma (pink)

keep this in mind: Price will always return to its moving average, whether through price or time.

Using $SDC as an example, anytime price has moved away from it's 20, it eventually magnets back to the 20 sma

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