Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear:
A thread 🧵👇
“Every action you take is a vote for the type of person you wish to become. No single instance will transform your beliefs, but as the votes build up, so does the evidence of your new identity.”
“You do not rise to the level of your goals. You fall to the level of your systems.”
“You should be far more concerned with your current trajectory than with your current results.”
“When you fall in love with the process rather than the product, you don’t have to wait to give yourself permission to be happy. You can be satisfied anytime your system is running.”
“Goals are good for setting a direction, but systems are best for making progress.”
“Habits are the compound interest of self-improvement.”
“Be the designer of your world and not merely the consumer of it.”
“The purpose of setting goals is to win the game. The purpose of building systems is to continue playing the game. True long-term thinking is goal-less thinking. It’s not about any single accomplishment. It is about the cycle of endless refinement and continuous improvement.”
“Ultimately, it is your commitment to the process that will determine your progress.”
“Success is the product of daily habits—not once-in-a-lifetime transformations.”
Moving Averages 101: Second Edition: Incredible Signals That Will Make You Money
A thread 🧵
“The 10-day EMA is a good moving average to keep a trader on the right side of a major market trend, and this was a favorite strategy of legendary day trader, Marty Schwartz. It’s typically the first line to be lost before a trend reverses in the opposite direction.”
10 lessons from “The Psychology of Money” by Morgan Housel
A thread 🧵
“Spending money to show people how much money you have is the fastest way to have less money.”
“Someone driving a $100,000 car might be wealthy. But the only data point you have about their wealth is that they have $100,000 less than they did before they bought the car (or $100,000 more in debt). That’s all you know about them.”
Ten lessons from my book “The Ultimate Guide to Technical Analysis”
A Thread 🧵 👇
“Technical analysis is the trading of price action, while fundamental analysis is the trading of value. These are vastly different things.”
“Technical analysis focuses only on price action & volume. The best use of TA is not the prediction of future price. It should be used to identify the path of least resistance, quantify the probabilities of what will happen next & identify a price of entry for a good R/R ratio.”
Ten lessons from my book: “The Ultimate Trading Risk Management Guide”
A thread 🧵 👇
“The biggest mistake you can make in risk management is finding yourself on the wrong side of a trend with a large position size, stubbornly letting it continue to run against you without exiting. If you don’t know what to do in a market the safest thing to do is to go to cash.”
“Trades must be asymmetric; the downside risk is carefully planned and managed, but the upside profits are open-ended. This is a critical part of trading success.”
10 lessons from the book: “How I Made $2,000,000 in the Stock Market” by Nicolas Darvas
A thread 🧵 👇
“There are no good or bad stocks, there are only rising and falling stocks.”
“I did not know it but I was already coming up against one of the great pitfalls of the small operator—the almost insoluble problem of when to enter the market.”
His answer was to entry on breakouts of momentum to the upside in stocks in uptrends.
Ten lessons from my book: “The Ultimate Guide to Candlestick Chart Patterns”
A thread 🧵 👇
The larger the candle, the higher the volatility of price action, and the smaller a candle is, the tighter a trading range has become. Increasing candle size indicates expanding volatility, while candles getting smaller shows contracting volatility.
Hammers have a higher probability of being a valid reversal signal when found inside a chart trending downward.