#HDFC (D)
- Taken support over demand zone
- Bounced with volume from Support
- Trend reversal candle formed
- Buy above 2760
- Stoploss 2715
- Target 2800/2840/2880/2920+
#SwingTrade

Technical Analysis Masterclass- Part 2

'Entering the trade'

Entering a trade without ascertaining a certain things is gambling.

In this masterclass we will learn the pre-requisites to enter a trade.

DON'T ENTER A TRADE WITHOUT DETERMINNG THE FOLLOWING.

Please share.

We understand what reward to risk (popularly called risk to reward) is.
It will be denoted by R:R.

We will also try to bust a few myths about R:R and how to avoid losing trades.

Before entering a trade, you need to determine 3 things.

1. Entry trigger
2. Stop loss
3. Target

1. Entry trigger = Reasons for entering a trade. There could be multiple reasons or a single reason for entry.

Generally a set of reasons AKA confluence is a higher probability trade and a generally a safer entry.

Example of an entry trigger.

2. Stop Loss.

The price in the opposite direction of the trade where the trade is exited, at a loss.

At this level, the reason for the entry becomes invalidated according to TA and the price can then move in the opposite direction, probabilistically.

3. Target is the possible price level that the asset might touch based on previous trends or confluence AND where a possible reversal could occur.

Target is the next path of least resistance from where the price might reverse.

We will always ONLY use TA to determine all 3.

“Don’t leave the church because of the people who hurt you. Nobody is perfect, only God”

I’ll explain why this comment is not only not helpful at all, but also very harmful.

1/

The comment assumes we can’t tell the difference between people and toxic theology, it assumes our issues are with a few people who are outliers and misrepresented God, and we just seem to think that’s the totality of divinity. Which makes us appear unintelligent and petty.

2/

But, that’s not the case at all. I didn’t leave because a few people hurt me in the name of God, in fact I stayed long enough to get hurt again, and again, and again, and again. Because it’s not a few bad apples hurting people in the name of God what we are dealing with.

3/

Instead we are talking about systemic abuse due to toxic theology that is taught as righteousness.

Go to any white evangelical church today and conduct all the tests you must to ensure only those who are “good Christians,” remain. I guarantee you people will be harmed there.
4/

Not because people just hurt people, not because Christians have good intentions but sometimes make mistakes; instead because the harm is caused due to indoctrination into toxic theology and a belief that their social and theological framework is not only good,

5/

1 There's a chasm between an NLP technology that works well in the research lab and something that works for applications that real people use. This was eye-opening when I started my career, and every time I talk to an NLP engineer at @textio, it continues to strike me even now.

2 Research conditions are theoretical and/or idealized. A huge problem for so-called NLP or AI startups with highly credentialed academic founders is that they bring limited knowledge of what it takes to build real products outside the lab.

3 A product is ultimately a thing that people pay for - not just cool technology or user experience. But I’m not even talking about knowledge gaps in go-to-market work. I'm talking purely technical gaps: how you go from science project to performant + delightful user experience.

4 Most commoditized NLP packages solve well-understood problems in standard ways that sacrifice either precision or performance. In a research lab, this is not usually a hard trade-off; in general, no one is using what you make, so performance is less important than precision.

5 In software, when you’re making something for real people to use, these tradeoffs are a big deal. Especially if you’re asking those people to pay for what you’ve made (can’t get away from that pesky GTM thinking). They expect quality, which includes precision AND performance.

THREAD: 15 of the most useful razors and rules I've found.

Rules of thumb that simplify decisions.

Bezos' Razors:

• If unsure what action to take, let your 80-year-old self make it.

• If unsure who to work with, pick the person that has the best chances of breaking you out of a 3rd world prison.

Skinner's Law:

• If procrastinating on an item, you only have 2 options:

1. Make the pain of not doing it greater than the pain of doing it.

2. Make the pleasure of doing it greater than the pleasure of not doing it.

Luck Razor:

• If stuck with 2 equal options, pick the one that feels like it will produce the most luck later down the line.

I used this razor to go for drinks with a stranger rather than watch Netflix.

In hindsight, it was the highest ROI decision I've ever made.

Bragging Razor:

• If someone brags about their success or happiness, assume it’s half what they claim.

• If someone downplays their success or happiness, assume it’s double what they claim.

The map is not the terrain.