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AllDayFaders Profile picture
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28 Jul, 11 tweets, 3 min read
Dont quit. Trading is 1 of the few exceptions to the sunk cost fallacy. if u already poured a ton of $ & time into this journey, then u may be closer to the finish line than u think. just identify what u're doing wrong (99% of the time it's probably dumb impulsive shit) & fix it.
Impulse control comes from understanding basic biology & brain neurochemistry. In layman terms, the primal regions of ur brain (amygdala etc) & ur most developed region (frontal cortex) are always at war with each other. They want 2 conflicting things

ur frontal cortex has evolved to do long term planning, self-control, delaying instant gratification in exchange for future gain, holding back primal instincts etc. That's why violent criminals, kids, & ppl with frontal cortex damage have such a hard time with impulse control
meanwhile ur amygdala & limbic system has evolved to do the exact opposite. it wants immediate pleasure, instant gratification, sex, violence or avoiding danger. it's the animal side of u. it does NOT have the capacity to plan b/c when a lion is facing u THERE IS NO TIME TO THINK
When ur frontal cortex is fully activated, ur amygdala is inhibited. when ur amygdala is fully activated, ur frontal cortex is inhibited. that's why each time u do dumb shit mid-trade, u cant even recognize urself. when u come back to ur senses u think "wait, what was i thinking"
that's because U WERENT THINKING. Most of ur bloodflow was directed towards ur amygdala, not ur FC. And its job is to avoid pain, not to manage risk. so ur FC is thinking "stop out" or "stick to the plan" while ur amygdala is thinking "DONT TAKE THAT LOSS OMG WE NEED THE MONEY"
That's why u always revenge trade. that's why u always break ur rules even though u swore u'll stop. that's why u come to the market fully rational but the moment a trade goes against u you go full retard.

Understand this or u'll forever be stuck in that cycle of bad discipline
How do u keep the amygdala from activating? simple, maximize bloodflow to ur frontal cortex. so:

📝trade a system (use a checklist for every trade)
🚫plan stops BEFORE u need them
🏃‍♂️exercise daily (blood to the FC)
😴sleep (lack of sleep hurts the FC a TON) etc

#BearTipOfTheDay
Oh and obviously eat before trading. The frontal cortex has an INSATIABLE need for glucose. The moment your blood sugar drops too low, FC activity drops substantially. That's why they give people candy before taking math tests or the SAT etc. It makes a huge difference.
That's why if u notice, most of ur dumb trades or days of abysmal discipline happen after u got low sleep or went a long time without food. This is not a coincidence. you are not yourself (FC slows down) when u are hungry or sleep deprived. anyway g2g this thread took too long
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More from @team3dstocks

AllDayFaders Profile picture
3 Jul
I'll save u years of data tracking and experience. the best long setups are simply bear traps. Largecaps or lowfloats, doesnt matter. Look up my "you gon learn today" setup if u need a visual. I stop out (if short) & go balls deep long each time I see it.

#BearTipOfTheDay
if u're a scalper, look for it on the 1-3min chart.

if you're a daytrader that likes to capture big moves, look for it on the 5min or even 15min chart.

if you're a swingtrader, look for it on the hourly, 4h or daily/weekly chart.

The bigger the timeframe the bigger the move.
For example here's when $AMC did the #youGonLearnToday setup back when it was in the $20 area, right before the gamma squeeze. I took the L on my call shorts and flipped long. if it does it again, even at this current inflated price, i'll flip long again.

Read 12 tweets
AllDayFaders Profile picture
19 Jun
I dont trade stocks I trade setups. I dont look at the scanners & think "which stocks are moving.? oh this one is interesting. let's see how i can trade it". No, i look for predictable, objective setups ive studied over the yrs, THEN i look for stocks that fall within that setup.
Quaterbacks 🏈 dont jump into a game & say "let's see what happens".

No, they study the opponent BEFORE the game.

they practice predetermined routes & formations BEFORE the game.

then when the game starts, they look at the defense (setup) & execute routes based on that.
"oh the defense is doing a cover 2 (setup), ok we hav route combinations for this. Oh theyre using a nickle defense formation, got it, we hav route combinations for that etc".

THAT'S how i approach trading. "oh this is setup XYZ, got it, i kno the execution rules for that setup"
Read 5 tweets
AllDayFaders Profile picture
14 Jun
the easiest way to find big supply/demand imbalances is to simply look for scenarios where a big investor or group of investors are stuck with LARGE (ideally losing) positions that they cannot easily close out.
u have to understand that not everyone trades with 100 or 1K shares like most newbies. So not everyone can get in and out of trades easily. so when a LARGE trader (or group of traders) is stuck, their #1 goal is no longer making money, it's finding liquidity to get out.
So this creates a scenario where the moment they get liquidity (ideally near their breakeven price), they'll take it without question. The more of them are stuck, the more they'll clog up the bid or ask (depending on if it's a bear or bull), creating an imbalance.
Read 8 tweets
AllDayFaders Profile picture
13 Jun
from my experience AND the overwhelming data, the BEST intraday long setups almost ALWAYS happen after 10am. that's why if im short a stock and it's still consolidating above VWAP after 10am, + beating its volume forecast for that time, i close the trade immediately or downsize.
that's b/c a stock with significantly more supply than demand should be getting SLAUGHTERED and near its LOD by 10am. with all the bulls from the open trapped and providing additional supply on every pop as bagholders. if they're not trapped, then guess who is.

#BearTipOfTheDay
Remember, most shortsellers trade MASSIVE size, and when u're on that kind of size u cant just "stop out" without massive slippage. ESPECIALLY after 10am where liquidity on the offer dries up faster than 90yr old pussy. This creates a domino effect once the stock starts to uptick
Read 5 tweets
AllDayFaders Profile picture
12 Jun
I have too many tweets on this. AVOID large losses at all costs. Large losses dont just set u back financially, they set u back MENTALLY. one single large loss not only erases days of hardwork, but it also fucks up ur psyche so much that it ALSO hurts your FUTURE trades.
It puts u in the "i gotta make it back" mentality, so u'll refuse to take profits on working trades even if u get an exit signal, b/c u'll compare the unrealized win to that BIG loss & think "that's not enough, i need to make more". Then u'll overstay & turn that win into a loss.
This will then lead to MORE frustration.. hurting your psyche even more. U'll then start forcing stupid trades, doubling size to try to make the loss back quicker etc, and since u're so mentally unstable, the next losses u take will be even bigger (since u're on double size)
Read 7 tweets
AllDayFaders Profile picture
11 Jun
Catching up on DMs before calling it a day, and this message right here warms my cunty heart ❤. I get happy whenever things start to "click" for traders. For those who work hard daily to refine their crafts, u know what i mean: those "aha" moments are like pure cocaine. Image
ppl dont suffer b/c they have too little information, they suffer b/c they have too much. the key is to keep filtering out the noise. keep applying the pareto principle aka the 80/20 rule over and over on every aspect of ur trading ( Search my tweets on that for more details).
80% of ur outputs come from 20% of ur inputs. FOCUS on those.

80% of ur profits come from 20% of ur trades, so FOCUS on those setups, ignore the rest.

80% of ur losses come from 20% of ur bad habits. so FOCUS on eliminating those habits first, worry about the other ones later.
Read 4 tweets

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