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AllDayFaders Profile picture
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12 Oct, 4 tweets, 2 min read
Most ppl enter the trade first then place their stop a certain amount away from their entry. "i'll enter here and just risk X cents". That's wrong. Your stop loss should ALWAYS be protected by a key supply (if short) or demand (if long) area. That's the whole point of a stop loss
it has to be protected by an area that the stock is NOT likely to breach. If ur entry is too far away from such an area (thus fucking up ur R/R) then ignore the trade. That's why I always say exits come before entries. If i cant find a good area to risk off then fuck the trade
That's also why I want my stop to be protected by as many factors as possible. A basic ass support/resistance area is not enough. I need multiple safeguards. My stop loss is my quarterback. I want EVERYBODY protecting that mofo. throw in 2 tight ends & block the RB if we have to
That's why it's not enough to take a trade just because it looks good. it must also have good impenetrable areas to risk off so that u can sit back and let the trade play out without having to worry about fuckboy candles or stop hunts. Plan exits before entries.

#BearTipOfTheDay

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More from @team3dstocks

AllDayFaders Profile picture
12 Oct
When I say demand/supply zones i'm not JUST talking about basic technical analysis 101 support/resistance levels. Many things contribute to demand or supply and some of the most accurate ones are not even on the chart.
why do u think sometimes a stock will have ZERO obvious resistance but keep rejecting?? or a stock will have zero obvious support levels on the chart but keep holding dips everytime? stop thinking the chart has all the answers. we'd all be billionaires if it were that simple.
That's why I always say find a setup & master it. There is no universal indicator that works for all asset classes. something will work with a 80% winrate on setup ABC but have a 20% winrate on setup XYZ. some things that work like MAGIC on lowfloats dont work at all on LCs etc
Read 4 tweets
AllDayFaders Profile picture
30 Sep
Honestly 1 of the reasons I want to spend less time in front of screens is simple. There is NO END to this game. Uwill NEVER be satisfied no matter how much 💵u make. And the more 💵u make, the LESS that 💵means to u, so u endup increasing size endlessly just to get the same rush
When u're a beginner trader, making ur first $100 in 1 day feels like the best day of ur life. U're excited & want to tell everyone.

Fast forward 1 year later and making $5K in 1 day feels like the worst day of ur life b/c that's ACTUALLY a day where u underperformed.
Then add another year & u see where this is going. Eventually u get to a point where u're making entire SALARIES in 1 day and still feel like like u underperformed. U become so detached from reality that u forget that some ppl will never even see that kind of money in a lifetime
Read 7 tweets
AllDayFaders Profile picture
29 Sep
Ive obsessed over this stock shit for years, and all those years of research, tracking, observing and trading have shown me that there are 5 undeniable and timeless truths about traders (smart money vs dumb money).

Here are the top 5 facts, use those to sharpen your trading:
🎖1 - Discipline

Starting with the most obvious one, if u already read my tweets.

Smart money are knowledgeable & disciplined.

Dumb money are (contrary to popular belief) knowledgeable enough to make money, they just dont have the discipline to STICK to what they KNOW works.
⌚ 2- Doomed to fail

Dumb money are only patient when they're losing. In short, they take profits on winners WAY too fast, but hold on to losers WAY too long. small winners, HUGE losers.

Smart money spend little time on losing trades but milk the FUCK out of winning trades.
Read 11 tweets
AllDayFaders Profile picture
27 Sep
In terms of efficiency, it is my personal opinion that EVERYONE should LEARN how to trade. Everyone. No other skill (once mastered) can return as much capital, in as little time, and with as much freedom (no boss) & comfort (pajamas) than trading. But dont trade to be wealthy,
trade to be independent and self-sufficient FIRST. the problem is that everyone who starts trading wants to be filthy rich immediately & have a Lambo by next year. get the fuck outta here. That mindset is why so many traders oversize too early & blow up before mastering the skill
The key to make $1K, $5K, $10K, $100K a day etc first starts with MASTERING how to make $100, $200, $500 etc a day first. Meaning u will have to be ok with making pussy amounts of money for months FIRST, which wont happen if u have "lambo dreams", b/c u'll always be in a rush.
Read 7 tweets
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
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

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