My top 6 #trading #books:

1 How to make money in stocks (O'Neil)
2 How to trade in stocks (Livermore)
3 Trading in the Zone (Douglas)
4 Trade Like a Stock Market Wizard (Minervini)
5 Reminiscences of a Stock Operator (Lefèvre)
6 How I Made $2 Million In The Stock Market (Darvas)

7 signs a stock trend is exhausted:

1) Price >100% above MA 200
2) Largest volume since start of the trend
3) Big gap after several months of rally
4) New highs on lower volume
5) Reversal bar on weekly chart
6) 50% gains in 3 weeks
7) >7 days up in a row

What else?

Avoiding big draw downs at all costs is important because

10% loss requires 11% gain
20% loss requires 25% gain
50% loss requires 100% gain
90% loss requires 900% gain
to get back to break-even.

Managing the down side is much more important than managing the upside!

4 key ingredients of #trading #success

1. Have a backtested trading system with a positive expectancy

2. Be a good risk manager to survice every market.

3. Work on your mindset to improve the execution of your system.

4. Ignore what other people are doing as much as possible.

I always look at weekly charts first. Only if I see an appealing chart pattern (VCP, cup & handle, flat base …) here, I go to the daily chart. With that approach, I can flip over hundreds of charts in minutes.

#Trading tip: There is rarely a reason to sell a stock which is above the EMA 8 or even EMA 21. I am sure: If you use this rule instead of blindly selling on your feelings, you will make a lot more profits.

Four books you can read to improve your technical skills

-Trade Like Jesse Livermore

-Anna Coulling A Complete Guide To Volume Price Analysis

-Stan Weinstein's Secrets For Profiting in Bull and Bear Markets

-Studies in Tape Reading by Richard wyckoff

Must read #TechnoFunda books:

Invest in Yourself

https://t.co/qPVhlS7gGx

#investing

Linda Raschke’s 12 Technical Trading Rules

20 Books To Read in Your 20s

(thread)

1)Think Again by @AdamMGrant

2)Tuesdays with Morrie

3)How to Talk to anyone

4)Factculness

All the books (all 34 of them) I read this year and a one-line review on them!

My last thread for 2020 🧵

#Books #Reading

Let's get started 👇

1/n

Alibaba - The house that Jack Ma Built

Rejected 10 times in Harvard, rejected in 30 jobs, first 2 businesses didn’t work out.

This book is extremely motivating as it tells how a man from humble beginnings built Alibaba into one of the largest internet companies

2/n

The Peaceful investor & Company Analysis Volumes 1, 2, 3, and 4 (covers 40 stocks in total) by @drvijaymalik

After reading these, you learn the fundamental analysis process completely!

@drvijaymalik is rightly called the Doctor of stocks, he is the best in fundamentals!

3/n

Ode To Geniuses

The book discusses philosophers and poets from the Renaissance era - Epictetus, Euclid, Horace, Nikola Tesla, and a few more

It's fascinating to note how they started out and the way they ended up in their respective fields to make a big mark!

4/n

Beyond the End

This is about unfinished masterpieces of art -This is also very interesting as the stories of incompletion and the artists behind them grip you completely!

Note - This book + the one before are private publications, they were gifted to me by @Sharad9Dubey