The power of quality over quantity never fails to amaze me. As some of u kno, ive been working on a little experiment lately (less time in front of screens, more time with family/friends, working out, hobbies etc). I 100% believed that my profits decrease during this experiment
But i was willing to pay that small price in exchange for more "balance" & a break from the "if i dont work 12-15hrs a day staring at screens then im not productive" mindset". Contrary to my expectations (that i would make LESS money), the OPPOSITE actually happened.
I reduced my "trading time" to just 3 hrs a day max (2.5 hrs in the AM to open/manage swings, and just 30min in the afternoon for market review + tracking + charts etc), and I actually made MORE money in the last few months than I did when I was spending almost ALL day on the cpu
And when I tracked my performance to see what were the MAIN things that changed (I wanted to make sure it wasn't just a shift in market environment), guess what the stats showed:
1) I took HIGHER quality trades 2) I took LESS impulsive trades
The result, bigger wins, smaller Ls
And in hindsight, it all makes sense.
#1 happened (more high quality trades) b/c since I knew I only had limited time to trade, I made sure to focus ONLY on the best. So all trades I took were ADF score 80% or higher (before, i would take <80% score trades & just lowered size)
but that mindset is so toxic because we all know what happens when we tell ourselves "this setup is not great, i ll just do small size or risk 1/2R only". we eventually get attached to the trade once we have skin in the game, and next thing u know we're risking 1R all over again.
Now over a few days, the losses from those "low quality trades" dont affect our performance much, but over a period of several weeks, all those tiny losses from shitty trades DO add up. I mean just imagine if u could go back in time & erase ALL of the low quality trades u took.
So in short, being forced to take HIGHER quality trades actually boosted my winrate (which idgaf about anyway if u know me), AND my R/R ratio since my winners were significantly larger than usual (that's the whole point of high quality trades, when they work, they work "bigly")
and for #2, since I had LESS time in front of screens, I also had less prefrontal cortex burnout, less decision fatigue, less brain fog, and therefore less opportunities to go "full retard" mode. it's common sense, less time on CPU = less chances of self-sabotaging ur cunty self
So that ALSO drastically reduced my losses.
And lastly, spending more time with family, my daughter, more time enjoying my hobbies (training, binging football 🏈, researching biology etc) actually made me HAPPIER overall, & we all know mental health is KEY to trading performance
Conclusion: The pareto principle (80/20 rule) still wins. Stop thinking that more work always means more profits. It's a logarithmic growth curve at best, and an inverted U curve at worst. Trading gets to a point where sometimes more work actually leads to less or equal profits.
So if u're a beginner, as i always say, work like a slave until u reach a decent level of proficiency. But as things start to click, slow down, FOCUS on your edge instead, and start prioritizing DISCIPLINE and BALANCE. Quality over quantity. Happy holidays folks
Saying that placing stop losses is pointless because there is a chance they might get ran is like saying wearing a condom with the college slut is pointless because there is a chance that it might pop anyway.
Until gonorrhea hits u with the "you gon learn today".
Also dont think "FiNe iLL jUst uSe a MeNtAl StoP tHeN".
Market makers are not dumb. they dont need to SEE ur stop to know it's there. Based on volume, order flow & stats they can estimate where most ppl's pain thresholds are. So NO ONE is safe from this, hard stop or mental stop
The point of that thread was not "dont use stops". it's "use stop hunting as an EDGE in ur own trading". If u cant beat em, join em. As far as ur own stops go, some day they'll hold, some day they'll get ran too. who tf cares? losses are part of the game. manage em, dont avoid em
One of the most common questions I get is "I feel like they're coming for my stops".
Sounds like a conspiracy theory, but fun fact, it's not.
The market is DESIGNED to stop people out. You will always struggle with entries, exits and risk management until u understand this.
That's why everything can look good in hindsight & on ur backtested charts, but when shit gets real & the cameras start rolling, it quickly becomes a different ball game. Just b/c it looks perfect on ur stats & saved charts, doesn't mean it will always be perfect in real time
U can think "ok, i've seen this happen over & over again. I practiced. I studied. I'm ready", then soon as u get on the field and put ur football 🏈helmet on, u realize the field just switched to a fucking skating rink. The market says " u're playing hockey now, motherf*cker"
4) was my size calculated BEFORE the trade, in accordance with my risk management system? or did I randomly estimate what size to use?
5) did I have a systematic ENTRY or did I get in at some random ass area due to FOMO?
Do this for EVERY trade u took that day. Then overtime,
you'll see where most of your losses or stubborn trades come from. Is it #1? #3 ? #5? which of those 5 points leads to 80% of your losses (Pareto Principle) ? is it entries? exits? size? trade selection? it's different for everyone since we're all stubborn in different ways.
1) Even tho i was profitable before that, I would say about 2 yrs.. mainly bc even during my "profitable" streaks i would still have the occasional full retard days that would wipe out months of gains. so i knew how to make 💵, but discipline wasnt there until 2yrs later.
2) depends. if u're talking lowfloats then of course, i NEVER ever short a lowfloat stock without digging into its filings & fundamentals first. Too much edge there not to, plus it saves me from getting trapped on "agenda plays" like freedom price setups or planned offerings etc
now if u're talking LCs or options then i do almost zero fundamental research b/c it's useless short term. most of the fundy info for LCs is already factored into price unlike lowfloats where a stock can have a fat ATM or dilution yet idiot chasers will still be clueless about it
The more I answer questions the more I realize how full of shit this industry is. the amount of scammers & "gurus" out there who lure beginners in w/ unstainable strategies that offer short term satisfaction but long term failure is astounding. They lure u in with shit like this
Meanwhile the reality is THIS.
and u guys are EATING this shit up like it's fucking cheesecake.
STOP falling for this BS.
Most of my time spent on DMs is literally me helping ppl UNLEARN the shitty habits they built up listening to fuck ass scammy gurus that blow up themselves but then refund with YOUR money
@_spikeet revolutionized the game for u mofos. check em out. and no im not paid to promote em. if anything im lowkey jealous that u guys can now access data in seconds, that used to take me MONTHS of all-nighters to collect & track MANUALLY. To put it in perspective:
@_spikeet My spreadsheets had 10-30+ columns per ticker (row) depending on what I was tracking.
then 100s to 1000s of rows , and each ticker took me 8 to 20 minutes to manually fill across, so about 10min per row.
Do the math.
Sometimes my friends would stay up all night with me to help
@_spikeet but that didnt last long b/c they got bored/burned out super quick lol Then at one point I tried to get my GF to help (especially with when I was creating the lowfloat Volume Forecast). But after 2 days she quit too lol. And i dont blame her, it was tedious & boring as FUCK.