Post

@jfahmy

@AnthonyCrudele

@KGD_Investor

@jfahmy

@PatternProfits

@irusha

@Upticken

@alphatrends

@1charts6

@cperruna

@Trader_mcaruso

@alphacharts365

@PatrickWalker56

@LeifSoreide

@RossHaber_

@WishingWealth

More from @TraderLion_

TraderLion

@TraderLion_

Mar 13

One of the best ways to identify a bottom in real-time is using US Investing Champ Oliver Kell's @oliverkell_ Price Cycle.

The key pattern you need to know: The Reversal Extension.

Here's what it is, how you can spot it on the charts, with examples:

What is a Reversal Extension?

A Reversal Extension is a large reversal bar in a stock or index that is already extended to the downside below the 10 and 20 EMA.

Look for heavy volume capitulation — showing that buyers start selling and sellers cover shorts.

More characteristics of Reversal Extensions:

→ Look for a defined support level on a higher timeframe.
→ Heavy volume capitulation on the reversal bar is a key ingredient.
→ After the reversal extension, expect volatility, then look for price to tighten

Read 9 tweets

TraderLion

@TraderLion_

Feb 19

One question we get a ton — does the 8% stop loss rule from William O'Neil still work?

While it depends on the exact scenario, we've heard a different type of strategy from other market wizards:

Here's more on the the 3-4-5 rule:

Traditional CANSLIM methodology taught an 8% stop loss from a proper buy point, but even those who traded with WON said his stops were much tighter.

And if you study great traders like @markminervini or @Upticken, you'll see they implement the 3-4-5 strategy (or something similar).

Here's what that means:

Instead of setting your stop 8% from a proper buy point (and not being able to size like a superperformer), split your stops up like this:

→ 3% stop loss: sell 1/3
→ 4% stop loss: sell another 1/3
→ 5% stop loss: sell the final 1/3

You've built in wiggle room for price while also being able to put upwards of 25% equity in a name without risking more than 1% of your capital.

Read 5 tweets

TraderLion

@TraderLion_

Feb 16

It takes the best traders 5-7 years to find a system that works for them to ultimately become profitable.

Here are 10 lessons (from market wizards & hundreds of top traders) that will shorten your learning curve significantly:

Lesson 1: Trading Takes Patience & Hard Work

There's no shortcut to success in the markets.

William O'Neil is a perfect example of this — he put in the time necessary to build a system that fit his personality (CANSLIM).

Study the greats, & you set yourself up to be one.

Lesson 2: Stay Positive, Focused, & Disciplined

@Upticken is a great example of always staying positive no matter what.

Use the minor setbacks as lessons, always focused on improving and becoming the best trader/person you can be.

Read 13 tweets

TraderLion

@TraderLion_

Feb 14

William O'Neil was a true visionary.

From being the youngest ever to own a seat on the New York Stock Exchange, to turning $5,000 into $200,000 in less than a year.

Here's his story & a deep dive into the principles behind one of the greatest traders ever:

WON was from the souther plains of Oklahoma and went to college at Southern Methodist University.

His investing background was heavily influenced by great traders like Nicolas Darvas, Gerald Loeb, and Jesse Livermore.

Another name that stuck out to him was Jack Dreyfus, who in the late 1950s and early 60s had one of the best performing mutual funds in the country.

WON studied his methodologies, what worked + what he was doing differently than everyone else, and eventually created CANSLIM.

Read 19 tweets

TraderLion

@TraderLion_

Jan 31

Earnings season is here, and the best way to take advantage of it is by mastering one specific edge:

The High Volume Edge.

This is the same pattern that made traders like @Qullamaggie millions.

Here's everything you need to know (so you come prepared to start next week):

What is the High Volume Edge?

Simply put, you're looking for huge gap ups (10% or more) on BIG volume. Big volume is:

· The Highest Volume Ever (HVE)
· The Highest Volume Since IPO (HVIPO)
· The Highest Volume In 1 Year (HV1)
· The Highest Volume Since Last EPS (HVLE)

Why is High Volume an Edge?

After a news surprise or EPS report, institutions are forced to react. These reactions are either:

· Accumulate shares in a big way
· Distribute shares in a big way
· Do nothing (rare)

Volume is the easiest way to identify their actions.

Read 15 tweets

TraderLion

@TraderLion_

Jan 14

There's no better way to study fear & greed than by analyzing historical corrections (perfect for this environment).

Here are 8 you must study, ranging from the 80s to 2018:

—

1: Feb 1980

Peak Date: Nov. 28, 1980
Percent Loss: 27%
Absolute Low: Aug. 12, 1982
News: Recession

2: October 1982-July 1984

Peak Date: October 28th, 1983
Percent Loss: 14$
Absolute Low: July 24th, 1984
News: Heightened hostilities in the Persian Gulf, Interest Rates, 5 year bull prior without significant pullback, computerized trading

3: August 1987

Peak Date: August 25th, 1987
Percent Loss: 34%
Absolute Low: December 4th, 1987
News: The Plaza Accord & Louvre Accord

Read 10 tweets

Share this page!

Enter URL or ID to Unroll

TraderLion

Try unrolling a thread yourself!

More from @TraderLion_

TraderLion

TraderLion

TraderLion

TraderLion

TraderLion

TraderLion

Did Thread Reader help you today?

Don't want to be a Premium member but still want to support us?

Send Email!