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AllDayFaders Profile picture
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7 Dec, 6 tweets, 2 min read
1R is just your max loss per trade. It should be no more than 1-5% of your account (depending on how big or small ur acct is, and how aggressive u wanna be).

It should also be an amount that u are COMFORTABLE with losing, to prevent tilt and revenge trading.
As a baby, u learn to walk by falling several times. Every time u fall, u get better and better at walking. ur brain makes adjustments, ur coordination improves etc, BECAUSE of the constant falling. But if babies got badly injured each time they fell, they'd NEVER learn to walk
Trading is no different. u master trading by FAILING over & over again. And as long as each fall (loss) isnt disastrous, u will slowly adapt & get better & better. But if each fall (loss) is HUGE, like 99% of fucking traders trade, u will NEVER have enough time or $ left to adapt
That's why i get SO FUCKING MAD each time I see these scumbag GURUs promoting these ridiculous strategies where each loss is such a fucking retarded percent of their average wins. Beginners follow that and get WIPED out by just a few losses. Thanks to the scumbag guru.
Only difference is that when the GURU blows up, he can refund (thanks to sub money of course). But when the beginner blows up, he's out of the game for good since most of em have very little money saved. THAT's the secret the industry doesnt teach you.
So conclusion, u learn by LOSING.

The more u lose, the more u learn.

So the goal is to stay alive LONG enough to learn it all.

LONG enough to master the setups.

LONG enough to master ur emotions.

It takes TIME. The runway is LONG. so keep losses manageable.

#BearTipOfTheDay

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More from @team3dstocks

AllDayFaders Profile picture
26 Nov
Decided to start off the day by answering DMs in the morning instead of in the afternoon/evening as usual (b/c i most likely wont have time to do it once I enter this Turkey induced food coma that's coming up), and this message really hit home. So I'll devote a small thread to it
First off, yes, there is such a thing as "a personality for trading". But it is very tricky because as I pointed out before, the personality traits that attracts most of us to trading are the exact opposite of what you need to survive ONCE you're in. What do I mean by that?
For example. Most of us came to trading because:

1) we are ultra competitive

2) we wanted to get rich quick

3) we were rebels who hated following rules (ie: having to listen to a boss, or getting a 'normal' career like the rest of society etc.)
Read 9 tweets
AllDayFaders Profile picture
24 Nov
$TSLA bull thesis from last week is still working. Nothing new here. Same scenario that I explained last year:

$26 billion pent up demand from shorts

+ Retail keeps buying OTM calls.

+ OTM call sellers keep buying the stock to delta hedge.

+ Index buying etc.

= Demand galore
I also dont wanna hear stupid ass questions like "when is it gonna top out".

I dont know and I dont care.

My goal as always is to keep buying calls on weakness (when shorts are stuck) & puts when longs are fucked.

As long as someone is in pain, there is ALWAYS a trade.
As far as today goes, we already gapped up huge so ill be much more cautious on the long side until we get a pull and some profit taking. Way too risky to chase weeklies this high (premiums will get wrecked at the slightest pull)

So ideally we retrace to $530ish if Odin wills it
Read 4 tweets
AllDayFaders Profile picture
11 Nov
I wasn't always disciplined. I was a hardcore video game addict. Dropped out of college 3 times to stay home and play call of duty for 12+ hours a day. Things didnt change until I got sick of it and created a daily routine. Sounds simple but I owe EVERYTHING to my daily routine.
By nature i'm a VERY impulsive person. I do what i want, when I want. So without a daily routine to keep me in check, I'm all over the place, at the mercy of my mood or emotions. You cant get anywhere in life if you let your mood or emotions dictate what you're gonna do each day.
So I told myself "if I can just do SMALL things each day, EVERY day, those will add up over time".

So every day (even to this day) I wake up and just follow my daily routine checklist. Things that optimize my body, mind, finances, relationships etc. I just go down the list bro.
Read 4 tweets
AllDayFaders Profile picture
9 Nov
First off, most of the time what we call "inner demons" is really just our amygdala & natural fear response (fight or flight), which activates each time money is on the line. It is nearly impossible to be fully rational when this happens.

So here are 5 tips to help counter this:
1-Never fund ur account with money u're not ready to lose. And almost all new traders do this.

"oh my god I only have this $X,000 left over. I HAVE to grow this amount or im fucked."

Well u're fucked then, b/c it's impossible to trade with a clear head if u're afraid to lose
2-Similar to #1, Use a 1R (max loss or drawdown per trade) that u are COMFORTABLE losing if the trade goes south. if that amount is too big, ur amygdala WILL activate the moment u hit that unrealized loss, and u will freeze, cancel ur stops, and rationalize staying in the trade
Read 7 tweets
AllDayFaders Profile picture
24 Sep
I'll tell u the 3 main reasons why u should never renegotiate ur stop.

1) if u cancel/move it, and the stock continues to go against u, it'll be even harder to take the loss b/c at this point the stock will be so overextended that u'll be scared to stop out at the top/bottom
The result? u'll freeze like a deer in headlights as ur brain is stuck between "should i stop out & take this fat loss now" and "but what if i stop out and it reverses?". As ur brain is going back & forth between those 2 options, ur unrealized loss is getting bigger & bigger
Until finally, the unrealized loss is so big that u simply cant take the pain anymore, and throw in the towel as the stock starts to speed up against u. And guess what, 90% of the time, THAT'S the top/bottom.

Great. now u feel like a dickhead. with a FAT loss staring at u.
Read 9 tweets
AllDayFaders Profile picture
19 Sep
90% of traders dont fail because they're stupid. No, 90% of traders fail because they size up so fast relative to their knowledge and dispensable income, that they blow up before they have a chance to make all the mistakes necessary to become a profitable consistent trader.
It's like going to a 4 year college and spending all your tuition money on year 1.

Like Michael Jordan said "i never lost a game, i just ran out of time".

In the same way most traders who fail didnt really "fail". they just ran out of money.

It takes time to master this game
It takes time to develop an edge.

it takes time to master entries.

it takes time to master exits.

it takes time to find the strategy that matches your personality.

It takes time to undo your bad habits.

And most importantly, it takes time to master your cunty emotions.
Read 4 tweets

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