✅pull out ur data tracking sheet on excel
✅identify the best faders ever (reverse if u're a bull)
✅find out the top 5 things they all had in common (fundamentals, technicals, sentiment)
Compare those w/ the other 5 things ur best trades have in common.
Find the common thread
for example if u notice that YOUR best shortselling trades, & the BEST faders u've tracked, share a few common factors, over & over again, then u can use those factors to rank ALL ur future trades based on how many of those factors they share. 1 out of 5? 3 out of 5? 5 out of 5?
since men think better with our dicks.. here's a better example. imagine u wanna get laid and are lucky enough to have 3 women to choose from (3 hot chicks hit ur scanners). u can only pick 1. how do u decide? obviously u would have ur own set of criteria..
example
-pretty
-no herpes
-brunette
-gives good head
-no baby daddy etc.
If girl 1💃🏻only meets 2 of those criteria, then her ADB (alldaybang) score is 2/5
✅how often does this setup occur
✅at what time does it usually occur
✅what is the avg range
✅what signal/indicator usually marks the top/bottom of this setup
✅what are the fundamentals usually like on this setup?
✅what is the most reliable exit signal for this setup?
✅what is the most reliable entry signal for this setup?
✅where is the best place to place stops on this setup?
✅what do the BEST performers on this setup have in common?
✅how much volume does this setup usually trade?
✅at what time does HOD usually happen on this setup? LOD?
✅How does float size effect this setup?
✅Does this setup respect the key moving averages? if so which ones?
✅Does this setup perform better on day 1, 2 or 3?
✅Who is my competition on this setup? Dumb $ or smart $?
Some strategies are timeless simply because human behavior doesnt change. Example jesse livermore spoke about support/resistance, trend following & relative strength/weakness etc 100 years ago, & they still work today.
Bagholders are predictable bc human behavior is predictable
Example if im stuck bagholding 1M shares of a lowfloat trash stock at a $5 avg, & the stock drops to $2, with no liquidity to bail, what am i praying to Odin? Im praying “pls lord, i dont even wanna make $ anymore. Just get this stock back up near my breakeven price & im OUT!!
Now imagine if multiple cunts are bagged near that same avg, all thinking the same. That creates a wall of sellers near $5. Lets say 3M shares total. Once the stock gets back up there weeks later,if there is not at least 3M shared worth of demand at that area, the stock is toast.
u think to yourself "ok as soon as this stock pulls back im downsizing or bailing".
So u place cover orders at let's say $3.50, hoping they get filled as the stock pulls.
Remember, u're trading size, so u cant just market cover. u have to wait on the bid.
well guess what:
u're not the only shortseller trapped.
at least 20 other guys are also stuck with monster size & have the same exit plan as u (u'll be surprised at how many guys who trade ridiculous size on these LFs are not even on twitter).
That is exactly how u play low float setups to the long side.
You wait for the decisive level to break after 10am (shorts are now the "bagholders"), then u go long on the pullback ONLY if it holds (meaning the manipulators are purposely preventing shorts from breaking even).
The reason it's important to WAIT for the pullback to hold ABOVE the decisive price b4 longing is b/c sometimes they just breach the level to trigger stops, then dump their long position into the stopouts. u DONT want to long that b/c they're no longer committed to prop the stock
Here are 2 pictures to illustrate this, for my "visual learning" motherfuckers.
Picture B sums up the anatomy of and every other low float black swan in the last 10+ years
Picture A is just an exit strategy (break of decisive price just to dump shares).
keep an eye on $19.09 (vwap from feb 16) and $14.20 (vwap from feb 17). Use those areas as risk levels and to gauge heaviness.
$SCKT lol notice what happened each time it got close to feb 16's vwap ( $19.09 area). This is no coincidence. Stop thinking that only daily highs/lows act as resistance. Past days' vwaps are even MORE important. Gave u guys this edge YEARS ago. respek it.
I can give u a gazillion examples of this, but dont take my word for it. Backtest it yourself (the effectiveness increases as long as the stock's ADF score is high). Example why do u think $BBIG (96% adf score) topped out here on Monday? 😉 RESPEK previous days' vwaps!!