1️⃣Where is Price coming from? (Prior Trend/Sideways)
2️⃣Where does it have potential to go? (Target levels)
3️⃣Where does your view get negated? (Stop Loss)
4️⃣What's the Risk/Reward ratio? (Do Position Sizing)
5️⃣Long Thesis vs. Short Thesis?
Factors to consider when Analyzing individual Stocks:
1️⃣ Market Structure (Stage analysis, TLs, S&R, Elliot Wave)
2️⃣ Patterns & Volume
3️⃣ Candlesticks
4️⃣ Indicators (e.g RSI, ADX, Bollinger Bands, etc.)
5️⃣ Interplay of Timeframes
6️⃣ Fundamental catalysts
RT if Thread is USEFUL
1️⃣Where is Price coming from? (Prior Trend/Sideways)
2️⃣Where does it have potential to go? (Target levels)
3️⃣Where does your view get negated? (Stop Loss)
4️⃣What's the Risk/Reward ratio? (Do Position Sizing)
5️⃣Long Thesis vs. Short Thesis?
1⃣ Positional
2⃣ Trend following
3⃣ Momentum/ Trend continuation
4⃣ Range bound
5⃣ Bottom Picking
1) Not using a Stop & Not sticking to my Trailing Stop (especially in a winning position)
2) Pyramiding in winning positions at the wrong time (emotional attachment & lack of new ideas)
3) Acting on Tips (not backed by own analysis)
2⃣ One must survive the Bad days & those Drawdowns, to be able see the Light of the Best Days !
(my 2 cents of solace🔥, after this 2 week Virus bloodbath)
1⃣ Market Structure break (S&R, TLs , Darvas Box)
2⃣ Pattern negated/failed
3⃣ Dynamic stop using MAs/Bands
4⃣ Fibonacci based Stop
5⃣ High or Low of Candle/ w. ATR
6⃣ Chandelier Trailing Stop
7⃣ Time based Stop + RSI
8⃣ Fixed % or Price level Stop
Consider these 5 Variables when making Trading Decisions (taken from @smbcapital):
1️⃣ The Big Picture
2️⃣ Technical Analysis
3️⃣ Reading the Tape
4️⃣ Intraday Fundamentals
5️⃣ Intuition
1⃣ Ego - idea that 'you think you know everything & can never be wrong'
2⃣ Playing the Blame Game - instead learn to 'take responsibility'
3⃣ Comparing with Others - often does no good, leading to negative emotions such as envy, etc.
1⃣ Forgetting my Time Frame
2⃣ Not being Patient with new opportunities as I keep jumping in early instead of Waiting for the right levels....
I don't want to repeat these mistakes😡
1) If you Die tomorrow, who will cry for you?
2) So far in the life you have lived, how do you measure yourself or what you are proud about?
3) What can you not live without?
1) What were the major ATH & major ATL points in your life, and how did you deal with them? what followed?
2) Why are you doing what you are doing and are you diverting from your Why? Be specific
3) Are you even Listening.....?
1️⃣ Big Profit
2️⃣ Big Loss
3️⃣ Small Profit
4️⃣ Small Loss
- Your Goal is to avoid (2) completely & embrace (4)
- Search for highly skewed Risk/Reward and you can hit (1)
- (3) is common but not sufficient to make a fortune
Its Own Trajectory ➡️Then its Peers (Sector) ➡️ Then its Benchmark Index ➡️ Then finally Global cues
1⃣ Over Analysis is Paralysis
2⃣ Entries and Exits are Most IMP (don't be fickle with 'em)
3⃣ Profitable Trading is More Waiting...
4⃣ Less Trade, More Size
5⃣ Infinite Trading Opportunities Everyday so no FOMO
6⃣ Trade your chart, not your opinion/news
"How many times has a limiting self-belief or a shallow self-image served to be an obstacle for you to walk on the path of greatness ?"
1️⃣ Trading everyday is not necessary. Profit > Frequency
2️⃣ Frustrated or Disturbed Mindset is harmful when making Trading decisions
3️⃣ For Best Results, you need your own Space/Environmental for Trading
4️⃣ Discuss Trading with only a few or don't at all
1️⃣ Trend continuation ✅ Trend reversal 🚫
2️⃣ Risk/ Reward ratio
3️⃣ Money management 🏦💸
Courtesy of @TheAnantAcharya Sir. I highly recommend all to watch his "Illusions of Financial Markets" series !🙏
1) Sector Analysis
2) Stock Selection (Peers)
3) Stage Analysis (Price, Volume)
4) Multiple Timeframes
5) Relative Strength
6) Fibonacci
7) Anchored VWAP
8) Moving averages
9) RSI
10) ADX
11) Bollinger bands
1) Broad Market Indices (Nifty50, Nifty Small-Cap100)
2) Sectoral Indices
3) International Indices (SPY, DAX)
4) Forex (USD/INR)
5) Gold
6) Silver
7) Dr. Copper
8) Crude Oil
9) Natural Gas
➡️ As a general guideline, don't expect Trends to Change unless they correct more than 50% of the Prior Trend
➡️ Presume a Trend will continue forever unless it is Reversed
➡️ Markets can Break One but not Two Swings, if they do re evaluate the Trend
👉ALWAYS learn to look Left⬅️ , you'll be surprised at how when congestion zones are broken, price moves swiftly🚶🏞️ in the direction of Trend....
Scalping/day trade 15min/3min
Swing (1-2days) 75min/15min
Swing (1-2 weeks) Daily/75min
Short term (1-2 months) weekly/daily
Medium term (0.5-2 years) monthly/weekly
Long term (>2 yrs) Quarterly/monthly
Credits @ProdigalTrader
1⃣ Always respect RISK
2⃣ Trading suffers when under Emotional/Environmental disturbance
3⃣ You need that SNIPER mentality
Bcuz when times are tough, you act reckless ➡️ you end up not having nuff ammo to capitalize🎯 on the good times
.
Need to realize the Limitations of my circumstances/ environment and Adapt accordingly 🤐➡️No Excuses
.
Will I come out of this? IDK I'll be surprised by the outcome
For New Traders Re: Market Wizards by @jackschwager "If you read market wizards and that doesn't completely excite you to the point where you can't sleep, then you probably shouldn't be in this business.....read that book as a barometer of how interested you are" - @PythonTrader
— J.C. Parets (@allstarcharts) July 14, 2020
E.g.➡️To live a Good Life, one must not only have good Thoughts and Intentions but one must also ACT on 'em
Similarly in Trading, just having good Setups and Trade ideas won't make the cut, you must put Risk on the table too🧨
➡️ Just like Morals & Ideals keep a Human in check, prevents one from going down the wrong path in Life
So in Trading, Rules of Risk Management prevent a Trader from blowing💣 up their Account in the process
➡️To live your Dream Life, one must have Belief and Faith in themselves, no matter how rough the road is
So, Trading too requires the Mindset to withstand all the emotional swings🎢 that come with the ups & downs of your PnL as you trade the market
- After One Good Trade, I end up taking huge risks avg setups leading to a streak of losses that causes my account to hit new ATLs
- DO NOT TAKE YOLO Trades😡😢!!!
📝 Never Ever focus on winning, getting this much % return on capital, meeting so & so targets, trying to recover, etc.
📝 Instead focus on Not Losing money, be Humble in accepting profits, be a Process oriented Trader
"Money cannot be a driving factor for me to become a World class Trader. Because when it's all gone, I'm in a losing streak or possibly bankrupt. Then what's going to keep me motivated to stay in the game or revive from the dead ?"
D:☠️🙃
