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AllDayFaders Profile picture
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23 Aug, 4 tweets, 2 min read
I dont know how many times I have to repeat this... I do NOT apply the #ThuFriRule on earnings week. most of the Open interest during that week is mainly big dick funds & MMs hedging their asses off. So the whole "bagging dumb money calls" thesis flies out the window.
second, I always combine my #ThuFriRule with my own price action / volume setups. So i dont just blindly trade based off high OI alone. ALL my setups require multiple factors to line up. The more factors that line up, the higher the odds (ADF score).
and third, even if everything lines up, i still trade as if 50% of all my trades will fail (1 of my biggest risk management rules). Now thanks to Odin, they dont, but I trade and size as if they will. This way i'm never caught off guard when a trade goes south.

#BearTipOfTheDay
Last week is a great example of this. I creampied and made a killing on $PFE $PLTR and $SPY calls but got lubelessly penetrated by $MSFT calls. Didnt care because I only expected half of those trades to work anyway, so 3 out of 4 working is a gift. Always expect the worst.

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More from @team3dstocks

AllDayFaders Profile picture
17 Sep
It blows my mind how lucky some of u new traders are. GOOD Info was NOT this easy to come by years ago when I started. My learning curve wouldve been a lot less brutal & I wouldve spent a lot less time hopping from DM to DM & sucking endless dick if it was. Take advantage of this
That's why i FULLY support services that help speed up the learning curves of those willing to put in the work. I wish these fuckers were around when I started.

U now have services like @scriptstotrade for scripts

@_spikeet for ridiculously efficient data retrieval
@scriptstotrade @_spikeet people like @ZachHurwitz literally pouring hours into making software and thinkscript stuff easily accessible to all etc.

Not to mention all the fancy sites that help u dig through filings now.

You lucky sons of bitches. Me and my guys had to do EVERYTHING fucking manually.
Read 6 tweets
AllDayFaders Profile picture
16 Sep
I dont know how many times I have to repeat this. read my tweets on hiding PNL and the affect focusing on PNL or equity curves has on discipline & impulsive behavior etc. guys, you cannot rewrite biology.. HUMANS ARE NOT DESIGNED TO TRADE. As crazy as that sounds, read that again Image
Our brain is predominantly wired to do what?

to AVOID risk
to AVOID losing resources
to AVOID admitting defeat
to get REVENGE

Those are things that helped us survive as hunters & gatherers in the wild. But notice how that's the EXACT opposite of what u need to be a good trader
That is why traders can bring their knowledge up to 9/10 after endless hours of study, but still struggle with discipline even 2-3 years later. Why do u think the the discipline part is so hard for almost everyone? u think everyone is just retarded? no. it's a neurobiology issue.
Read 4 tweets
AllDayFaders Profile picture
15 Sep
Ive said it 1000 times. Volume is by far the most important (and reliable) indicator, so start with that first.

Master volume, and all its derivates (vwap, volume profile, or yours truly, volume forecast etc). Then move on to MAs.

Remember, volume never lies.

#BearTipOfTheDay Image
Remember, EVERY indicator in the world can give you a bullish signal, EVERY chart pattern in the world can scream "buy now", but if someone puts a 1M sell order on the Ask, on a stock that is not able to generate that much volume, the stock isnt going ANYWHERE. and that's just 📠
Stocks dont go up because "tHe cOmPaNy iS gReAt" or "tHe nEwS wAs bUlLiSh bRo". they go up b/c the combined market-buy orders generated enough volume to remove all the limit-sell orders sitting on the ask (supply/demand imbalance). it's literally that simple. Volume moves price.
Read 4 tweets
AllDayFaders Profile picture
3 Sep
Unless u're a scalper, taking profits too early is 1 of the MOST underrated reasons why traders fail. Broker reports have confirmed this. Traders dont have issues finding winning trades.. they have issues staying in the trade long enough for the risk/reward to make fucking sense
Traders will lose let's say $1000 five times in a row then finally nail a $100 winner and close the trade.. because their fucking cognitively impaired "guru" told them "goTTA cLOsE gReEn bRo". Or my most hated one "MoNeY iS mOnEy bRO".
yeah "money is money" but the only problem with that dumb ass Neanderthal logic is that it is mathematically IMPOSSIBLE to be profitable long term with a risk/reward this trash. It's not enough to be green. That "green" has to be big enough to cover both past & future losses.
Read 6 tweets
AllDayFaders Profile picture
27 Aug
Like i always say, givin back shouldnt be seen as a sign of kindness. To me it's almost a duty. As much as ppl like to throw that word around, NO ONE is really selfmade. we're all standing on the foundation of those that came before us. Did i outwork everyone i kno? fuck yea, but
But who wrote the free articles I read? who wrote Reminiscences of a stock operator? who made the online vids I used to teach myself excel to track data? who created the FREE scanners I used? all my hardwork would mean NOTHING if those foundations werent first laid out by others
So as much as I pride myself in my work ethic, there are ppl in 3rd world countries who work harder than all of us combined yet make less than a $1 a fucking day due to the shitty environment & lack of opportunities they were be born around. so why did I succeed & not them?
Read 6 tweets
AllDayFaders Profile picture
26 Aug
Ive explained this several times, including on monday's post. the call-bagging takes place as we approach thursday/friday, & mon-wed is when they move the stock in the direction retail wants to give them FOMO. Therefore premiums are always the highest/juiciest earlier in the week
If I wait until thursday or friday to start selling, there'll be barely any juice on the calls to swing trade short (unless the stock pops & gives a daytrade opportunity on those days). So how do i maximize premiums without getting steam rolled? I start SMALL early in the week
then I get aggressive as we approach mid week. So if my max loss per credit spread is 1R, and i decide to start early, i would risk maybe 1/4R or 1/8R, leaving room for the stock to go higher. that's why i said on monday "im staying small since we're still EARLY IN THE WEEK"
Read 13 tweets

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