Every trader wants to be profitable, but not everyone is willing to put in the time and effort to get there.
Here are 11 concepts to master that will help get your there faster.
🧵 👇🏼 #PupThread
Here are 11 concepts to master that will help get your there faster.
🧵 👇🏼 #PupThread
1/ Position Size
This is the most important aspect of managing risk. Each trader must determine what is their best position size for each trade.
Consider the individual stock, the market conditions, & what the sector is doing.
My max PS is 10-12% of my account.
#PositionSize
This is the most important aspect of managing risk. Each trader must determine what is their best position size for each trade.
Consider the individual stock, the market conditions, & what the sector is doing.
My max PS is 10-12% of my account.
#PositionSize
2/ Risk Management
Before entering a trade, I will always determine the risk to reward ratio. I never enter a trade unless I can make $3-$4 for every dollar I risk. 3:1 or 4:1.
By defining your risk upfront, you remove the potential for massive losses.
#RiskManagement
Before entering a trade, I will always determine the risk to reward ratio. I never enter a trade unless I can make $3-$4 for every dollar I risk. 3:1 or 4:1.
By defining your risk upfront, you remove the potential for massive losses.
#RiskManagement
3/ Cut Your Losers Early
Not every trade we enter will work for one reason or another. If a trade goes against you, cut it immediately for a small loss. Never let a small loss turn into a larger loss or even a bag. You can always get back in.
#CutLosers
Not every trade we enter will work for one reason or another. If a trade goes against you, cut it immediately for a small loss. Never let a small loss turn into a larger loss or even a bag. You can always get back in.
#CutLosers
4/ Price Target Sells
Never enter a trade without knowing where you're going to sell. If you don't have defined sell targets, keep a SL underneath to capture moves to the downside. After being up 8%, I move stops to breakeven & trail a stop from there.
Not plan? No trade!
Never enter a trade without knowing where you're going to sell. If you don't have defined sell targets, keep a SL underneath to capture moves to the downside. After being up 8%, I move stops to breakeven & trail a stop from there.
Not plan? No trade!
5/ PAYtience
Most traders are impatient when they enter and are in a trade. If you have a plan, let it play out. Don't let your emotions take over.
Patience is a skill that traders need to master to find consistency.
While you're waiting 👇🏼
Most traders are impatient when they enter and are in a trade. If you have a plan, let it play out. Don't let your emotions take over.
Patience is a skill that traders need to master to find consistency.
While you're waiting 👇🏼
https://twitter.com/ThePupOfWallSt/status/1442181466725572612?s=20
6/ Compounding
Einstein said it is the 8th wonder of the world. Buffet constantly talks about it. So why don't more traders add to winners?
80% of the profits can come from 20% of your stocks that rise over time. Never hesitate to add to winners over key resistance levels.
Einstein said it is the 8th wonder of the world. Buffet constantly talks about it. So why don't more traders add to winners?
80% of the profits can come from 20% of your stocks that rise over time. Never hesitate to add to winners over key resistance levels.
7/ Turn Off The Tube
The talking heads are all noise. By the time they are talking about a stock, it's likely too late. Focus on your technical & fundamental research, not what some "expert" on CNBC is saying.
Filter out the noise, the chatter, and the rumors. Only price pays.
The talking heads are all noise. By the time they are talking about a stock, it's likely too late. Focus on your technical & fundamental research, not what some "expert" on CNBC is saying.
Filter out the noise, the chatter, and the rumors. Only price pays.
8/ Strength vs Weakness
Never average down into a losing position and never hesitate to add to winners that are running. All-time highs or 52-week highs are a great place to add on a position with the right risk management in place.
Never average down into a losing position and never hesitate to add to winners that are running. All-time highs or 52-week highs are a great place to add on a position with the right risk management in place.
9/ Technical Analysis is an edge
Use the tool that is out there to help define your trade plan. If you are an active trader and don't use software like @trendspider, you are doing yourself a disservice.
Check out my thread on 👇🏼
Use the tool that is out there to help define your trade plan. If you are an active trader and don't use software like @trendspider, you are doing yourself a disservice.
Check out my thread on 👇🏼
https://twitter.com/thepupofwallst/status/1449805056933384198?s=21
10/ Trading Psychology
This is the key to everything. Don't underestimate your feeling when you trade.
Here's a great thread on my favorite book on the subject 👇🏼
This is the key to everything. Don't underestimate your feeling when you trade.
Here's a great thread on my favorite book on the subject 👇🏼
https://twitter.com/thepupofwallst/status/1456043073742393346?s=21
11/ Build Good Habits
Having a habitual routine when trading that is repeatable is the key to finding consistency in your work.
Here is a thread on my favorite book about habits 👇🏼
Having a habitual routine when trading that is repeatable is the key to finding consistency in your work.
Here is a thread on my favorite book about habits 👇🏼
https://twitter.com/thepupofwallst/status/1448815928729288706?s=21
TLDR:
1/ Position Size
2/ Risk Management
3/ Cut Losers Early
4/ Price Target Sells
5/ PAYtience
6/ Compouding
7/ Turn off the tube
8/ Strength vs Weakness
9/ Technical Analysis
10/ Trading Psychology
11/ Build Good Habits
1/ Position Size
2/ Risk Management
3/ Cut Losers Early
4/ Price Target Sells
5/ PAYtience
6/ Compouding
7/ Turn off the tube
8/ Strength vs Weakness
9/ Technical Analysis
10/ Trading Psychology
11/ Build Good Habits
BONUS:
10 must-read books for thinker or wannabe thinkers or for those wanting to improve your thought process. 👇🏼
10 must-read books for thinker or wannabe thinkers or for those wanting to improve your thought process. 👇🏼
https://twitter.com/thepupofwallst/status/1455693716270686208?s=21
Many thanks to @cperruna for inspiring me to do my own take on this thread he posted
https://twitter.com/cperruna/status/1317485037659574272
You've made it to the end. 👏
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📈 Stock Market Update: bit.ly/3DlZOCc
✍🏼 Personal Writing: bit.ly/3FEqVKW
I'm Danny Naz. I write, I travel, I tweet and I eat. And I'm hungry for more.
#PupThread
✍🏼 Personal Writing: bit.ly/3FEqVKW
I'm Danny Naz. I write, I travel, I tweet and I eat. And I'm hungry for more.
#PupThread
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