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Trader knight

5 Dec, 5 tweets, 1 min read

The society in general doesn't really teach people how to lose.

They teach how to win, Winning is easy, it takes care of itself.

How you deal with loosing is extremely important in trading .

1. Do you hang on to it and let it bother you or you release it and let it go.

When you take a loss , you have to feel it, learn from it and then spit it out and focus on the next trade.

If you focus on that loosing trade too much then it will pollute you.

it will not allow you to take the next trade, and in trading you always have to focus on the next trade.

2. The next trade is the most important trade and not the last trade, neither trade before that.

Just let the trades happen and focus on the now of trading.

3. Don't dwell on your losses.

If you can get away from the money aspect of trading and just focus on the process you will be at a much better position then you are now.

4. Also, some more aspects which will Help your trading is -

1. self belief

2. Don't quit, and never loose all your money.
3. Its like a poker game you have to leave the room.

Trading is all about knowing yourself, knowing your weaknesses and strengths.

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More from @Traderknight007

Trader knight

@Traderknight007

5 Dec

The trader who turned $400 account into $200 million account.

10 lessons from Richard dennis, which can help you become a better trader-

Thread:

1. Whatever method you use to enter trades, the most critical thing is that if there is a major trend, your approach should assure that you get in that trend.

2. A good trend following system will keep you in the market until there is evidence that the trend has changed.

3. When you have a position, you put it on for a reason, and you’ve got to keep it until the reason no longer exists.

4. You should expect the unexpected in this business; expect the extreme. Don’t think in terms of boundaries that limit what the market might do.

Read 7 tweets

Trader knight

@Traderknight007

4 Dec

"90% of the traders lose money, But do they lose it all the time?"

Most of them do make money, its just that they give it all back.

Lets analyze why and how a trader makes and loses money
[Thread]:

Below is the equity curve which is most traders dream.

This is equity curve of an average trader:

Most traders do make money, but they give it back to the markets .

Because of trading errors.

What are trading errors?

Read 15 tweets

Trader knight

@Traderknight007

2 Dec

https://twitter.com/Traderknight007/status/1334087413774348288

Sorry got the name wrong, it's not cup and handle, it's a cup (sideways pattern) after a run-up of probably 50%+ before it's occurrence. This set up is called powerplay.

Will also post some examples of this.

https://twitter.com/Traderknight007/status/1334087413774348288

The power play setup.
some traits that are required for a valid power-play setup are-

1.Stock should be up more than 50% from the lows.
2. The rise period should be less than 4-6 weeks.
3.Pullback (sideways pattern or cup) should be less than 0.38 retracement level. the deeper

the pullback the worse it gets.
4. 7-10 days of sideways action is required for this pattern to be valid.
5.Buying level is above the midpoint of the cup.
7.The reason for saying that a pullback less than 38% is better because it shows that there is demand even at high levels.

Read 6 tweets

Trader knight

@Traderknight007

3 Jul

How position sizing can affect your trading performance-

Assuming that you are trading a Trendfollowing system with Big RR and low winrate.

For example, assume that you risk one percent per trade on a 100,000 account
and you have 20 straight losses.

That one percent is of your remaining equity and at the end of 20 losses, you would be down to 81,790.60.
, Now if you got a 30R winner and you are risking one percent of your balance of 81,790.60, your
new equity would be 106,327.90 You’ve had 20 losses and one winner,

but you are still up 10R and your equity is up by 6.3R percent.But let’s say you risk five percent per trade on your balance. At the end of 20
straight losses, you would be down to 35,772.89 or down 64 percent.

Read 4 tweets

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