A lot of momentum traders struggle with one basic thing. How to spot a momentum stock and what to do after spotting it.

When I started, I used to see traders buying stocks that were up 10 to 15 percent in a single day. It always surprised me. I used to think how are they even finding these stocks so early.

If you are starting now, you are probably going through the same phase. That is why I am writing this.

This is the exact step by step process I follow. 1. Spotting the stock

I run my scan and the moment I see strong price action with good volume, the stock goes into my watchlist. That is the first signal of momentum.

Before Minervini became Minervini, he spent years studying other traders.

Five of them shaped almost everything he built.

A thread 🧵 Richard Love

The first one. The one most people have never heard of.

Minervini picked up Love's book Superperformance Stocks early in his career - before he had a real process, before he had consistent results. It was the first time he read something that made him think in terms of specific stock characteristics rather than tips and gut feel.

Love's core idea was simple: study the stocks that made the biggest moves and reverse engineer what they had in common before the move happened.

That one idea became the foundation of everything Minervini built. SEPA, the VCP, the Leadership Profile - all of it traces back to this.

David Ryan won the US Investing Championship three years in a row - 1985, 1986, 1987.

Triple digit returns each year. 1,379% compounded over three years.

Here's the actual method behind it. 🧵 1) He Was O'Neil's Protégé, Not Just a Student

Ryan didn't just read O'Neil's books. He walked into William O'Neil & Co straight out of college and offered to work for free just to get in the door.

He stayed for 17 years. Became Chief Market Strategist and the firm's first Portfolio Manager.

CANSLIM wasn't something he picked up from a book. It was something he built his entire process around under the person who created it.

That's a different level of understanding than most traders ever get.

Minervini has said it publicly. Qullamaggie has said it publicly. The strategy is the easy part. Most people still don't believe them.

Here are the 5 things that actually separate profitable traders from losing ones.

A thread 👇 1/ They know exactly when not to trade.

Losing traders are always looking for a trade. Profitable traders are looking for the right conditions first. When the market isn't set up, they sit on their hands. That patience alone saves them from a lot of unnecessary losses.

5 Stop Loss Techniques Every Swing Trader Should Master

If entries are about opportunity, stop losses are about survival.

Bad stop loss = either you lose too much, or you get kicked out too early.

Both kill your returns.

So here are the best stop loss techniques I've seen work consistently for swing traders. 1. Below the Pivot Low

This is the most logical stop for breakout traders.
When a stock breaks out of a consolidation or a base, the low of that base becomes your line in the sand. If the stock falls back below that level, the breakout has failed. Simple.

You place your stop just below that pivot low, maybe 0.5-1% buffer to avoid getting wicked out.

Why it works: The pivot low is the last point where buyers stepped in with conviction. If that level breaks, the thesis is dead. You're not hoping or guessing, you're respecting structure.

Lessons from each chapter of “Reminiscences of a Stock Operator.”

One of the greatest trading books ever written.
A century old, yet nothing has changed - because people haven’t.

A thread🧵 Lesson Number 1: Learn to read the tape.

Prices tell you everything.
Patterns repeat because people don’t change.
There’s nothing new in the market - only new traders.

After analyzing 10,000+ winning trades over my career, I've identified a pattern.

The stocks that deliver big returns consistently exhibit the same price behavior before they start the move.

Bookmark this thread: 👇 1. They're almost always young trends

The biggest money is made at the beginning of a trend, not the end. You want to catch them fresh off a major base, when the move is just starting to breathe. By the time everyone notices it, you're already in.

How to Avoid Fake Breakouts as a Swing Trader:

A Thread 🧵 1/ Market conditions set the stage

Don't fight the broader market. Studies consistently show that 70%+ of stocks follow the general market's trend.

Breakouts fail more often in downtrends or choppy markets. Your edge improves dramatically when you buy breakouts during uptrends and sell breakdowns during downtrends.

Work with the tide, not against it.

Have you ever wondered why even after selecting the best setups your trades never seem to go anywhere?

Meanwhile, some traders seem to be consistently on the right side of the market.

What is it that they do, that you can't replicate?

This thread explains it. 🧵 1. The Top Down Approach

Your process looks like this: You go through charts in your screening session and find the best looking stocks for the next day.

This is where you are faltering.

The pros don’t start with setup, they have flipped the script.

It looks like something like this.

If I were starting from zero in trading today, this is the playbook I’d follow.

Bookmark it 1/ Learn How the Market Actually Works

Most people have no clue how the market functions.

They've been "trading" for years but couldn't explain why prices move if their life depended on it.

Before you even think about strategies, understand what the stock market actually is and how it works - most people are playing a game without knowing the basic rules.

This is where you pick your lane - swing trading, day trading, whatever.

Pick ONE and stick to it Stop trying to be everything to everyone.

Been trading for years and noticed something interesting.

The traders who actually make it long-term all seem to go through similar stages. It's not random - there's a clear progression.

Here are the four phases I keep seeing.

In 1985, he started with ₹5,000.
By the end of his life, his portfolio was worth over ₹40,000 crore.

This is how Rakesh Jhunjhunwala — India’s Big Bull — turned a trader’s mindset into a fortune.

Bookmark this thread & read till the end 📌 From ₹5,000 to ₹40,000+ crore.
Rakesh Jhunjhunwala — India’s Big Bull — wasn’t just a “long-term investor.”

He was a trader who knew how to spot power, size up, and ride trends until they were exhausted.

Here’s the real breakdown of his edge — for traders 📌

"Reminiscences of a Stock Operator" is one of the most famous trading books ever written.

Yet 95% of readers completely missed Livermore's real secret.

Here are 8 uncomfortable truths that separate winners from losers:

I turned 37 yesterday.

And honestly, life teaches you a lot, sometimes the hard way.

So here’s a thread of things I’ve learned from work, life, health, and mindset 🧵 1. Profession

In today’s world, one skill won’t carry you for 20 years.
You have to keep upgrading. What worked in 2015 may not work in 2025.
If an idea keeps coming back to you, don’t ignore it.
That’s life giving you a signal. If you don’t build it, someone else will.

I recently built a team of 5. My work is smoother and lighter now.
And the real secret is simple. Make your people feel they are working with you, not for you.
Read books. Even if it feels boring at the start.
Stick with it. Books quietly change how you think, work, and live.

This took me 5 years to learn.
Cost me over 100R in losses.

If you're cutting trades early to "save money," you're making the same expensive mistake I did.

Stop before it's too late.

[A thread] 🧵 2/19 I was that trader who did everything right.
Perfect entries. Good position sizing. Solid risk management.

But I kept losing money even when my analysis was spot on.
My winners would turn into small losses. My losers stayed losers.

After my first podcast, many of you asked for the presentation. At that time, I couldn’t share it publicly. I did share the reason personally with those who asked for the PPT.

Since I’m still getting a lot of DMs, I felt it’s best to share it openly now.

Please go through this thread — I’ve attached all the images I discussed during the podcast.

Hope it helps! 😊

Want to Grow your Small Trading account into Millions?

No, you are not going to make it by Just punching Trades.

Study Big Traders who made their fortune in Trading.

I studied
@Qullamaggie 's thought Process while you were Trading in Random names.

Thread 🧵 🎯 Avoid Super Choppy Stocks.

- Trade Stocks which give clean move.

- When you select a Stock to trade look at a few past moves of that stock, if the moves were super choppy you better skip that name.

his is Kristjan Qullamaggie.

He turned $10,000 into over $100 million from 2013 to 2024. In 2021, he was ranked the 15th highest income earner in Sweden.

Let’s break down some of his winning trades.

🧵👇 $LCID

This is David Ryan.

He turned $20k into $900k in just 3 years. How?

He mastered the art of identifying big winners, timing trades, and scaling aggressively.

Here are 8 advanced lessons from his incredible journey 🧵👇 1. The Secret of Market Leaders
Ryan didn’t waste time on laggards. He hunted stocks with early leadership, a sign of institutional buying.

The tool? The RS (Relative Strength) line.

👉 If the RS line is making new highs while price consolidates, it’s a green flag for a breakout.
👉 Ryan always said: “Leadership precedes price. Follow the leaders.”

Buy Strong Stocks Early in a Trend.

Learn to Buy Range Expansion on the First day itself.

Imagine a stock moving sideways for months, doing nothing. Then one day, boom! It breaks out and starts trending. That’s your golden chance. The best time to enter is when the stock is just starting its move, not when it’s already flying high.

If you jump in late, thinking, "It’s going up, let me buy," you're asking for trouble. Buying after a stock has already made a big move is risky. The trend might be close to ending, and you’ll be the one left holding the bag. Even if you trade such moves, risk management and position sizing are everything.

Want to avoid unnecessary stress? Only buy when a stock is breaking out of a range early in a trend. Follow this one rule, and you’ll save yourself from sleepless nights and costly mistakes. #HINDZINC

941% in one year.

That’s how Oliver Kell dominated the market and became the USIC champion. 🏆 He shared his roadmap to explosive returns—here’s how you can spot and trade the next monster stock before it takes off. 🚀

🧵👇 1️⃣ Find the Right Stocks

Look for stocks that are liquid (easy to buy/sell), high-priced, and move fast (high beta). These help you trade smoothly with better profit potential.