Thread by @jordanfogel

This one skill will make you a better trader GUARANTEED

Here's what it is and how it 10x my trading:🧵

Stocks move in 2 phases:

1. Consolidation (balance)

2. Expansion

Understanding these 2 phases will ultimately help you become a MUCH better trader

I'll dive into both phases and then explain how it will 10x your trading

Let's go👇

The consolidation phase is when the price is stuck in a range

Here's what it looks like:

The consolidation phase is typically...

-Choppy
-Hard to trade
-All over the place

This phase is best for iron condors, credit spreads, or shares.

Because price is choppy and can stay in this phase for a while...

It's best to take advantage of time-favoring plays.

The expansion phase is a sharp price movement to one side

Here's what it looks like:

This phase typically...

-Last's a short time
-Is a very fast price movement
-One directional

Expansion movements are best for options, lottos, futures.

Since price is fast and one directional, options have the best chance of maximizing gains.

So why would understanding these phases 10x your trading?

Because you can use it to your advantage by...

MAXIMIZING GAINS👇

If you know price is in a consolidation phase...

then you know to take spreads or not trade at all because price can be choppy

The same works for expansion phases:

If you know a fast, one-directional move is coming...

Put on an option to maximize those gains

You could still make money with spreads or shares...

But can make A LOT more with options.

If you learned something from this thread...

1. Feel free to leave a like + RT on the original tweet so others can learn also

2. Follow me @FT__Trading to learn about strategies and market psychology

More threads coming🚀