1. In this market, maximizing the aces is everything! Many having tougher time day-to-day, so connecting big on aces is more important this yr than in ‘20/‘21. (1/3)
2. Preparation trickles ⬇️. Mgmt, team leaders, top traders all pushed each other to maximize the 5/22 tech bounce. Month-maker for many.
3. Everything aligns in the best trades, including top trader sentiment. No coincidence Swang & I both called the bottom together. (2/3)
4. Exponential bet sizing! Always comes up! Traders made huge progress being able to go big then turn it off 🤜🤛
5. Don’t force trades / chase performance! Let opps come to you. Consciousness of bad habits is first step to resolve it. DRC helps spot ahead of time. (3/3)
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CHANNEL FUNDAMENTALS: This is as important as my “Right Side of the V” concept. Together these two concepts explain a lot of how I traded MSTR / ARKK last week, Nasdaq futures in Jan ‘22, my prior GME write-up and a lot of my trading. So simple yet so many traders mess it up! 1/7
WHY? Bc these basics are opposite our intuition! Lesser traders chase stock higher, buying the higher highs. The stock then pulls back & maintains trend, but the weaker hands that chased then panic out @ the higher low. EXACT OPPOSITE OF PROPER TRADING! 2/7
OPTIMAL WAY: If stock trending higher, way to trade is either to HOLD & CAPTURE BIG PICTURE TREND UNTIL IT IS BROKEN OR IF SKILLED AT TIMING, SELL HIGHER HIGHS & BUY BACK THE HIGHER LOWS. If trend breaks to downside, get out. Counter-trend can be traded using same concept. 3/7
ENVIRONMENT IS EVERYTHING: If trying to excel at a skill, you need to surround yourself w best growth environment possible for developing that skill. That’s why one of my top pieces of advice is find a shop or skilled trading community. I’d never have succeeded w/o it. (1/4)
If you have nobody w edge to mimic or learn from, odds of success <1% in trading. Punting odd lots is easy & comfy. Building / joining optimal environment is hard. (2/4)
CONVERSELY, AVOID POOR ENVIRONMENTS: Need to surround self w highest caliber you can. Applies to your gym, the friends & fam you keep around, city you live in, everything. Must be surrounded by ppl full of energy dreaming big & TAKING ACTION & accomplishing great things. (3/4)
A+ TRADE WRITEUP: Brandon shared this writeup w me having based it on my GME and Yen writeup. Not only did he knock the trade and writeup out of the park, but I traded nat gas similarly myself! Thx to Brandon & @smbcapital for letting me share. Here’s what I loved about it. (1/6)
Great intro context to why the move is occurring. (2/6)
WAYS TO DEFINE CHANGE OF TREND: NOT an exhaustive list & how I’ll use is situational, but here are some ideas. Breaking a trendline. Holding new side of VWAP. Break of prior bars. Break of a moving average. Capitulatory exhaustive price move OR exhaustive volume exchange. (1/4)
Higher highs and higher lows (bullish trend). Change in the tape / level 2 box. Break of resistance level. Stock doesn’t go down on bad news. Relative strength vs market / comparables. And sure many more out there… (2/4)
ADVANCED APPLICATION: Now keep in mind, these aren’t mutually exclusive. Exact opposite. More of these together, the better. That is why so important to be thorough and well-defined in this challenge. If 1 indicator is good, wouldn’t 5 of these together be better? (3/4)
HOW TO ESCAPE THE MAZE: This is a metaphor I used w my trainees and part of the work I did on “meta-learning”. So many people would put so much work into the wrong places. Meta-learning helps make sure you are investing your time efficiently. (1/9)
Imagine you are stuck in a huge elaborate maze. Success in trading or life is getting out of the maze. What are the best practices to get out? (2/9)
0️⃣ Before you even start, try to find the best maze for you and make sure it is possible to escape. If you put me in the “become a basketball star” maze or the “become famous DJ” maze, I stand 0% chance. Not my strengths / no passion or interest. (3/9)
MY ACTUAL TRADE WRITEUP: Sharing so you can 👀 some of the details of my trading system & how I use technical analysis to structure a trade. Also, 👀 just how detailed trade write-ups can be. I would do 100s of these, dissecting every bar & what the price action represents. (1/4)
Ideally, my write-up would go even deeper. I’d rate my size, discuss the lvl 2 box, review what changes I could have done better, relate it back to my process goals. You can go infinitely deep. More important the trade, deeper you go. Most trades get no writeup at all. (2/4)
Important to note this is not the “right” way to trade or analyze it. There are many right ways or lenses to view this. This is just what works for ME. Everyone has different timeframes, risk tolerance, views. I know ppl who traded it different than me and made more 🤷♂️. (3/4)