Top 7 Things You Must Do Differently to Achieve Massive Success as a Trader by Jesse Stine

(Jesse turned $46,000 into $6.8M in 28 months, netting him a return of 14,972%)

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4 Simple Steps to Avoid Downtrends 📉 (a thread)

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1. Know the difference between an uptrend & a downtrend 📈📉

At TraderLion, we identify an uptrend as stocks/markets that trade ABOVE a RISING 21DSMA and 50DSMA.

A downtrend occurs when stocks/markets trade BELOW a downsloping 21DSMA/50DSMA.

Let's look at an example 👇

$QQQ from 2020 shows what an uptrend, downtrend, and even chop period looks like.

2. Know when it is really time to make money on the long side.

Swing Traders: when markets/stocks are above the rising 21D
Position Traders: when market/stocks are above the rising 50D

We can take this one step further by understanding what a Power Trend is 💪

The trend is really your friend when we have a Power Trend in the general indexes. A concept coined by the @IBDinvestors team, we must have the following:

✅ Low > 21ema for past 10 sessions
✅ 21EMA > 50SMA for at least 5 sessions
✅ 50SMA slope is positive
✅ Market closes up

Building a Daily & Weekly Routine Workflow to Increase Profitability

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The stock market is one of the most complex systems in the world, with parts that change every single second.

As individual investors, we need to bring a level of consistency to our system that can prevent us from feeling overwhelmed.

Routines offer this consistency.

As a retail trader/investor, you must have a set routine for your daily review and weekend review.

This is non-negotiable if you want to outperform the market or increase your current levels of profitability.

In your Daily Routine, you should review the following 👇

🔹 General Markets
🔹 Current Positions
🔹 Emotional Review
🔹 Focus List
🔹 Summary

General Markets (10 min)

The goal is to identify if the wind is at our backs.

You should note whether there has been a recent cluster of accumulation/distribution, where price is with respect to the KMAs, & the index's relationship to the highs.

20 lessons from trading legend Stan Weinstein:

Volume is a gauge of how powerful the buyers are... Never trust a breakout that isn't accompanied by a significant increase in volume.

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8 Chart Patterns by William O'Neil

Let's break them down one by one🧵

Perhaps the most famous basing pattern found in the market is the Cup with Handle pattern.

✅ Chart resembles a cup with a handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: high of the handle
✅ Handle length: 1 week
✅ Handle depth: no more than 15%

There is also a Cup without Handle pattern.

✅ Chart is just a cup, no handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: High of left side of cup

The Double Bottom chart pattern is also very common & is one of the most powerful patterns to learn.

✅ Base resembles a "W"
✅ Base length: Min. 7 weeks
✅ Base depth: < 40%
✅ Buy point: middle of "W"
✅ Second low must undercut first low

The Flat Base pattern is another well known structure coined by William O'Neil.

✅ Base resembles a shallow consolidation
✅ Prior uptrend must be greater than 30%
✅ Base length: Minimum of 5 weeks
✅ Base depth: < 15%
✅ Buy point: High of structure

There is one simple habit that William O’Neil, Nicolas Darvas, and every other Market Wizard share that is the KEY to their success & outperformance.

The habit? Analyzing their trading through post analysis.

Here is our guide to doing post analysis like a Market Wizard.

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Post Trade Analysis (PTA) is one of the most important parts of any trading system.

It is the process of analyzing each & every one of your trades, highlighting:

✅ Setup/edge
✅ Market env. at time of trade
✅ What you do well/poorly

& more!

By the end of this thread, here’s what you’ll learn about PTA:

1. Non-negotiable Benefits of PTA
2. The most important metrics to look at
3. Letting results guide your trading
4. PTA Frequency guidelines
5. Top Trader Template
6. Secret Bonus Tip

Let's get right into it.

PTA Tip #1: Non-negotiable Benefits of PTA

By analyzing your trades, you are ensuring that:

· You will know what works best for you
· You will know what is holding your performance back
· You will know how to FIX your trading issues

& there's one more hidden benefit of PTA...

Analyzing who you are as a trader builds a foundation of CONFIDENCE.

If you are struggling with your confidence, there is no better place to start than taking a cold hard look at your results.

What is the biggest challenge that traders face?

It's not the market. It's not the competition. The biggest challenge traders face is themselves.

That's why we've put together this list of five short lessons that will help you overcome your next trading obstacle:

1. You need to be disciplined enough to wait for the perfect opportunity.

Successful Traders:

❌ They don't force trades or take unnecessary risks.

✅ They wait patiently for the market to provide them with a high-probability setup before entering a trade.

2. You need to only take calculated risks.

Successful Traders:

❌ They don't take irrational risks or blindly follow the herd.

✅ They make calculated decisions based on their analysis and plan.

3. You must be able to accept losses.

Successful Traders:

❌ They don't try to avoid losses at all costs.

✅ They know that losses are a part of trading and accept them as part of the process.

4. You need to have a defined edge.

Successful Traders:

❌ They don't trade based on hope.

✅ They have a defined edge that they execute repeatedly.

What is Relative Strength (RS) and how to identify it (Thread)

Focusing on stocks exhibiting strong Relative Strength is one of the keys to achieving superior returns. This is one of the core ideas of #CANSLIM

In one sentence showing RS means outperforming other stocks both during market uptrends and downtrends.

In this thread we will cover examples, how to spot it, and how to use it to make sure you are in the top stocks.

If you want to outperform the indexes, logic says you have to be invested in stocks doing the same.

First Some Basic Terminology:

RS Rating: @IBDinvestors Proprietary measure of RS scored 1-99. Stocks with an RS rating of 80 have outperformed 80% of stocks over the past year.

RS Line: The Line plotted by dividing each day’s stock price/ price of the SPX.

The value of the RS line itself does not mean anything, but the trend of this line is very important.

-Note RSI (Relative strength index) is something completely unrelated to the concept of this thread.

10 Trading Tips for any strategy. (Thread)

1. Find a Trading Method That Fits Your Personality

Becoming a great trader is a process of self-discovery. It is very important to understand this from the get-go and start by finding a proven style, or methodology that jives with who you are.

2. Trade With The Trend

Did you know 3 out of every 4 stocks follow the direction of the general market? Anytime you are trading against the trend you are putting the odds heavily against yourself.

3. Stay With Your Trading Strategy After A Few Losing Trades

Next time you take a loss, try not to take it too personally. Sometimes you can do everything perfectly and you are still going to take a loss. That’s part of being a consistently successful trader.

4. Post Analysis Is The Secret To Success

By maintaining a trading journal and doing post-analysis, you can answer extremely important questions like…

What is working? What am I doing right?

What is not working? What am I doing wrong and how can I fix it?

8 Chart Patterns by William O'Neil

Let's break them down one by one🧵

Perhaps the most famous basing pattern found in the market is the Cup with Handle pattern.

✅ Chart resembles a cup with a handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: high of the handle
✅ Handle length: 1 week
✅ Handle depth: no more than 15%

There is also a Cup without Handle pattern.

✅ Chart is just a cup, no handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: High of left side of cup

The Double Bottom chart pattern is also very common & is one of the most powerful patterns to learn.

✅ Base resembles a "W"
✅ Base length: Min. 7 weeks
✅ Base depth: < 40%
✅ Buy point: middle of "W"
✅ Second low must undercut first low

The Flat Base pattern is another well known structure coined by William O'Neil.

✅ Base resembles a shallow consolidation
✅ Prior uptrend must be greater than 30%
✅ Base length: Minimum of 5 weeks
✅ Base depth: < 15%
✅ Buy point: High of structure