The choice for traders is between Magnitude moves and duration moves. Each of them is a profitable way to trade but requires different methods. Magnitude moves are moves where a stock makes a very big move in a short period of time. The magnitude and speed of the move are critical in this kind of move.

Many years ago I worked for a FedEx franchise in India that operated cargo flights daily, and observed the importance of Situational Awareness (SA). It is essential skill for pilots. SA skill for pilots involves:
extracting information from the environment;
integrating with relevant internal knowledge to create a mental picture of the current situation; using this picture to direct further perceptual exploration and
anticipating future events.

Situational awareness is key to long term trading success. The US Air-force developed the OODA Loop for making SA decisions for fighter pilots. The OODA Loop is the cycle of Observe – Orient – Decide – Act – Observe – Orient – Decide – Act

All growth companies at some stage runs out of growth. That is happening to some long term growth stocks. But at same time new industries, new segments go on to grow big. Has been happening since commerce started. Focus more on finding the next big runners. The companies that are dramatically growing revenues and profits while market is focused on old leaders like $AMZN, $FB, $NFLX

Momentum is stocks tendency to move in the direction of prevalent trend. You can use momentum to select stocks to swing trade or position trade. 🧵 Momentum can be calculated in many ways and the period and specific method used to calculate momentum depends on your goals and holding periods.

Understanding structural tendencies is the foundation to becoming profitable. A good understanding of them can help you build enduring edge. There are many well known structural tendencies of the market that have historically proven to work and if you understand them in depth and build your trading around them , chances of you becoming profitable improve dramatically.

Many new traders approach me asking how can they become profitable quickly, the key is to develop setup specific procedural memory. To become a highly profitable active trader understand procedural memory. It is a memory about how to perform a process like swing trading . It is implicit memory and once developed is permanent.

Situational Awareness (SA) is a filter on top of a setup you use to determine whether it is likely to work or not and how well it is likely to work. Every trader at some stage in their trading career recognises the importance of developing SA specific to their setup. This is a must develop skill for every trader if you want to have high returns and low drawdowns.

Momentum Burst is a 3 to 5 day burst move where stock makes 8% to 40% move . This is a common phenomenon in market. 247 stocks in last week had 20% plus kind of move on bullish side. 130 had 20% plus down move in last 5 days. There were more bullish opportunities than bearish.

Market insights helps in being profitable. Toby Crabel in his book gives a very good insight on market behavior. Period of low volatility is followed by range expansion. This is such a key insight to making money. Toby Crabel also has very good insight on entering breakouts early. Earlier the entry lower is the risk and higher the profits.

Look for stocks with big catalyst everyday (Episodic Pivots). You may not find them everyday, but once in a while they show up and just few of these big trades can make your year or sometime can change your life. In order to find big winners you need a daily process that you follow to find them. If you follow the process day in and day out , luck will favor you and you will not miss a big opportunity.

As an active trader I target 8 to 40% move in 3 to 5 days. These moves are short term momentum bursts. In order to understand these better everyday I study stocks up 20% plus in 5 days. This is a very simple study done using a scan in tc2000
c/c5>=1.2 and minv3.1>100000 and c>=5
As of today it has 55 stocks making 20% move.
tc2000.com/~nrfh1c

When you do a deep dive like this on 1000 to 5000 setup in short time period of days or weeks you understand this setup and it becomes part of your way of thinking as you have invested significant brain energy in that activity. As a result you become good at identifying it Psychologists have word for it called Mastery Experience. That experience changes your beliefs about that particular ability to find that setup.

If you understand social learning theory , you can shorten your learning curve significantly. Albert Bandura's widely accepted social learning theory proposes learning can occur by just observing the actions of others. People can learn new information and behaviors by watching other people

If you study same thing daily for 20 years you find things others may have missed. Every day I study stocks up or down 20% plus in 5 days or up or down 20 dollars in five days. Every week I study top 100 winners YTD, 1 month, 3 month 6 month , year. When you do the study you find things that others may not have noticed and helps question many assumptions and beliefs. You can quickly disprove many common aphorism repeated by others.

Visualize and It Will Materialize (My daily Visualization scripts) daily 15 minutes in the morning Part1

ABC always be in control

CRT controlled risk taking

FEE find and enter early

T3A think 3 days ahead Visualize and It Will Materialize (My daily Visualization scripts) Part 2

BTFD when Fed active buy the F..... dip

PLASTICS Healthcare technology consumer discretionary sectors produce biggest winner every year

COUGAR buy young setups and trends

OLC organize like crazy

Will it make the boat go faster .A British member of Stockbee introduced me to this very powerful way of thinking based on the approach used by The British Rowing team to win the 2000 Olympic Gold medal . Will it make the boat go faster .Every time they just asked that one question .
Ruthlessly asking the equivalent question in trading of Will It Make the Boat Go Faster helps us improve our trading dramatically by only focusing on actions that lead to profitable trading .