BC TRADERLION
Saved by @SeekerHari

How To Reach Peak Trading Performance (Thread)

 Trading is you versus the Market. It’s a one on one battle with a system designed to take your money if you lack discipline and an identifiable edge.
To achieve success and be able to take on this opponent, you must conquer your own faults and work towards incremental improvement.

Learning to trade, analyze charts, and manage risk are skills that you can carry with you for a lifetime.
However before you can reach the performance phase and consistently capture alpha, every trader must go through learning phases.
Your journey begins as a rookie trader, thrust in the midst of a pitched battle between yourself and the market.
Traders in this phase have no cohesive strategy or feedback loops which they use to test ideas and then improve. They take trades based on FOMO, what friends are saying, and what is claimed to be a sure thing from pundits and social media.
During this phase, this is a significant lack of discipline and accountability. Any profits are attributed to skill and any losses are the fault of algos, the fed, or the smart money. The focus is on getting rich quick, excitement, perfect stocks and perfect indicators.
There is no thought of risk management and often traders in this phase will experience large drawdowns and frustration when the market becomes choppy. Batting averages will fluctuate and average gains will be much smaller than average losses
For many this will be the only phase they experience before giving up.

However with discipline and hardwork, everyone can move on to the next one
The next phase begins with a commitment to yourself.

Do you want to learn and improve at trading and build wealth over time?
Are you willing to put in the work of reading books, taking courses, watching webinars, and researching edges to accumulate the knowledge necessary to successfully and consistently trade?
Once you make this commitment, you have begun the transition into the consistency phase.
In this phase, you must focus on the process of trading, not the potential rewards.
You should be building comprehensive rules which will govern your trading decisions from stock selection, buy/sells, position-sizing, to how you will deal with different market environments.
You should also focus on building habits that prepare you for the trading day. Most of the work should be done pre/post market and on the weekends.

Position Sizes, entry points, and stop-loss levels can all be determined in advance.
Trading is about fixing your problems. You have to be a good problem solver and not an excuse maker.
Here are some common issues of traders in the consistency phase:

Focusing on low potential/quality stocks & setups
Entering at non-optimal points (extended from a pivot/support)
Being inconsistent with position sizes and stop losses.
Trading out of tune with the market
The solution to all these issues is discipline and hard work, there are no shortcuts here. Focus your efforts on the identification of issues with your trading and then obsess over solving them.
The length of the consistency phase depends on how much deliberate study a trader does.

Books, seminars, and videos from experienced traders sharing mistakes & lessons can provide the foundation to quickly accelerate your learning curve.
During this phase you start to realize that after a certain point, trading is less about the perfect setup and being right, but more about being in sync with your own emotions, the market, and managing risk above all else.
At this point the focus starts to turn less from being right to targeting high potential setups and taking only small losses when wrong.

Having the discipline to wait for the right pitch becomes critical.
The consistency phase naturally transitions to the Performance phase in trading as you identify your edges and manage risk effectively.

During this phase the goal is to simply perform.
Traders become confident in their chosen setups and narrow their focus to only stocks which meet their strict criteria.

Daily and weekend routines keep them in touch with market conditions, what types of setups are working, and high potential ideas for the trading day.
Every day these traders do their homework and prepare for success.

The goal is to perform when the conditions are right and increase their equity curve, and then scale back to minimal exposure when conditions change.

Go flat, perform, repeat.
Trading is a lifelong journey and traders in every phase experience drawdowns, knocks to their confidence, and poor performance periods.
However, while newer traders might get frustrated during bad times, over trade and size up to get back what they have lost, more experienced traders in the performance phase fall back on their risk management rules, their routines, and scale back until they find their footing.
They recognize that trading will be an ever evolving process and that the market will always be there. They are involved in the markets to perform not for the action.

Learn to recognize which phase you are currently in.
Identify your weaknesses through post analysis and strive to address them by adding rules and routines.

Focus inward, not on another trader's action on twitter who may be in a completely different phase than yourself
It’s all about incremental improvement and growth and being better than yourself one year ago.

More from TraderLion

TraderLion \U0001f981
TraderLion 🦁
@TraderLion_
There are thousands upon thousands of stocks that you can trade.

But how do you narrow it down to the best of the best?

In this thread, we'll highlight the 3 most important steps you need to take to create a Focus List (& how you can apply these lessons immediately)

👇🧵

By the end of this thread, you'll be able to:

✅ Scan quickly and effectively to build a Universe List
✅ Narrow it down further to a Weekly Focus List
✅ Find the best stocks possible to trade

It's that simple so let's jump in.

· Scan quickly and effectively to build a Universe List

🔎 Pullbacks
🔎 Breakouts
🔎 High Volume
🔎 Fundamentals
🔎 Momentum Edges

Here are the criteria you can use in your favorite scanning platform for each:

Pullbacks Edge 🚨:
· Above your favorite Key Moving Average Scan (> 10EMA, 21EMA, 50DMA)
· % Off Highs Scan (< 20%)
· Reverse Pocket Pivot Scan

Breakouts Edge 📈:
· 52 Week High Scan
· Volume > 2x Avg. Scan
· Price > 5% on Session Scan
TRADERLION , TRADING GUIDES , TRADER LION
TraderLion
TraderLion
@TraderLion_
How To Execute when Trading (Thread)

Trading is a matter of preparation, discipline and execution.

Execution is about reacting to what we see on the charts in accordance with what you have already planned out when the market is closed.

The reason we plan our actions beforehand is because our emotions are at a lower state and we are more objective at that point in time.

Many traders often have the same watchlists going into the week but when the opening bell rings and setups emerge, the traders who can execute have the best performance.

Trading execution begins with research and preparation.
ALL , TRADERLION
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TraderLion
TraderLion
@TraderLion_
What to do if you are not trading well. (Thread)

Impatience and instant success are built into our minds from the get-go. We want instant wins and instant rewards.

This has as much to do with our psychological build-up as it does with the society we live in.

In this thread, we will cover:

What to do if you are not trading well.
How to stop the drawdowns when no progress is being made.
How to have a systematic process that protects you from yourself.

So what is it that drives us?

We all want the market to reward us for our hard work, the effort, and time we put into it.

We want input to equal output.

However, there is no such thing as input = output in trading.

Trading is about consistency, persistence, and hard work without the certainty of any reward.
TRADERLION
TraderLion \U0001f981
TraderLion 🦁
@TraderLion_
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%)

🧵👇


Learn How to Sell

🔹 "Most investors spend 99% of their time studying what to buy and when to buy it."
🔹 "If you don't become passionate about the art of selling, you might continually lose a majority of your gains."
🔹"Fear is NOT a profitable sell signal"

Focus on Weekly and Monthly Charts

🔹"Smart money billion dollar hedge funds and institutions base their buy and sell decisions almost exclusively on longer-term weekly and monthly charts."

To make big money, we have to know what big money is doing.

Wait Until Everything Lines Up

🔹"There's only one way to put yourself in a position to hit a grand slam. Wait, wait, & wait some more until most of the technicals line up in your favor. By waiting until EVERYTHING lines up, your odds of massive success go through the roof."

Invest on an Island

🔹"Ignore the noise and make your own decisions."
🔹"By eliminating all the 'noise', you open up the possibility of massive success."
TRADERLION
TraderLion \U0001f981
TraderLion 🦁
@TraderLion_
Ed Seykota turned $5k to $15M in just 12 years.

Here are 20 of Ed's key quotes & takeaways to maximize your trading returns 👇🧵

"If you can’t take a small loss, sooner or later you will take the mother of all losses."


"Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible."


"Having a quote machine is like having a slot machine at your desk – you end up feeding it all day long. I get my price data after the close each day."


"In order of importance to me are:

1) The long term trend
2) The current chart pattern
3) Picking a good spot to buy or sell"
ED SYKOTA

More from Traderlion

TraderLion \U0001f981
TraderLion 🦁
@TraderLion_
Building a Daily & Weekly Routine Workflow to Increase Profitability

--- Thread 🧵 ---

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.
TRADERLION
TraderLion
TraderLion
@TraderLion_
How to identify the next Market Leaders (Thread)

After a basing/corrective period in the market, new merchandise will start to emerge and show itself as the market is setting up for another uptrend.

Some leaders from the previous run may continue their moves, but often it's the new leaders which will provide the most alpha.

So keep an open mind and search for the stocks that are standing out from the crowd with the strongest combination of superior price + volume action and fundamentals.

Here is how to find these next leaders:

First, market leaders by definition lead the market. They will often be making new price and relative strength highs as the market starts moving up from a potential bottom.

Keep an eye on Relative Strength Lines especially. A Relative Strength New High Before Price is a key Leadership Blueprint. For instance, $TSLA showed this characteristic before advancing 350% in 2020

The RS Line is calculated by the Price of the stock/ SPX
ALL , TRADERLION
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TraderLion \U0001f981
TraderLion 🦁
@TraderLion_
3 Simple Steps to Quickly Grow a Small Trading Account

--- Thread 🧵 ---

1️⃣ Define a Repeatable Edge

A basis of any successful trading system is having an edge over a series of trades.

Without a well studied edge, you cannot succeed in the market.

Example of edges:

Trend system
* Trading during the power trend
* Trading stocks that are in uptrends
* Trading GROUPS that are in uptrends

High Volume Edges
* Highest Volume Ever (HVE)
* Highest Volume in > 1 Year (HV1)
* Highest Volume Since IPO (HVIPO)

2️⃣ Define Entry Tactics from that Edge

Once you have an edge, you need an entry tactic.

Entry tactics are repeatable and definable. You should know your entry and exit points before ever placing a trade.

Examples of entry tactics:

Trend system
🟢 Enter on two closes above a KMA
🔴 Exit on two closes below a KMA

High Volume Edge
📊 High Volume Close
📊 High Volume Support

Edges & Entry tactics have to be repeated CONSISTENTLY to reduce randomness when trading a small account.
TRADERLION
TraderLion
TraderLion
@TraderLion_
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.
TRADERLION
Richard Moglen \U0001f4fd\ufe0f\U0001f981\U0001f6a2
Richard Moglen 📽️🦁🚢...
@RichardMoglen
The Importance of Trading Rules (Quick thread)

Last week I sent out this poll asking if people have a written


Over 60% of people said they did not have one.

It's now one of my main goals to get as many people as possible to commit to writing their own rules which codify their goals and methods.

I strongly believe that writing down your strategy especially if you are a new trader/investor will lead to improved and more consistent performance in the stock market.

Trading the markets is a tough business, money is on the line and emotions can run high.

Preparing ahead of time is essential so that in the moment you are just executing your plan.

This is the best way to stay in the game for the long haul
TRADERLION

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Shy people are either overthinking or highly observant of the social setting.

And in many cases it can be both.

'So what do I do?'

You learn the 75/25 law.

'What is that?'

The law of charisma...👇

Let's address the over thinkers first.

Do you have any idea why you overthink?

'Yea. Because others are judging how shy I am.'

Incorrect.

Others are thinking about themselves, not you.

But the fact that you think they are thinking about you, you fuck up the interaction.

Now you stay in your head too much & avoid the present moment.

A major no no in the social world.

Your tendency to think that others are judging you for being shy, coincidentally makes you more shy.

And that's when you start giving off a strange vibration to the social setting.

This is when you begin attracting comments like 'why are you so quiet?'
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👇Thread.

Published a new essay: The red flags and magic numbers that investors look for in your startup’s metrics – 80 slide deck included!


This was a deck that I created on my (longish) interview process with @a16z. It was a long path, starting with meeting folks at the firm 10 years ago. But the purpose of the deck was to explain how I would use my superpower in an investing context

Here's what I explain in the deck. As investors (whether angel or VC) we're often confronted with an up-and-to-the-right graph. Is it going to go up? Or down?


One solution to forecast these growth curves is the Growth Accounting Framework, where you add up New+Reactivated and subtract churned users. In each time period that gives you the difference in monthly actives.


The problem with this is that it's a lagging metric, not a leading one. We need to go one level deeper and look at the underlying loops that drive these numbers, to understand the quality.
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2) We were down in the lobby and I was kind of crushed. I don’t know what I expected, The Thing and the Yancy Street Gang to be sitting around smoking cigars? Anyway, my Dad was taking a beat to figure where we were going next and a guy came up to us.

3) He was wearing a white shirt and tie and said to Dad “Is he disappointed because. The Marvel offices were just offices?” My Dad said yes and then the guy who had gray around his temples and a mustache said “hold on a second” and opened one of those office mailboxes with a key.

4) He then handed me a thick stack of EVERY SINGLE MARVEL COMIC COMING OUT THE NEXT MONTH. “Here you go. Keep reading Marvel comics” he said and then walked off. I left in a daze and about 15 minutes later it hit me “Gray around the temples, mustache... That was Stan Lee!”

5) Later when I wrote on the Ant Man movie I told Kevin Feige the story, the year, look of the guy etc and Kevin said “That’s exactly the kind of thing Stan would do and he would have been there then. That was him.” Rest In Peace Stan Lee and thank you for the comics.
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Corey Haines \U0001f4a1
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I think I'm giving up on mainstream marketing content.

I'm giving up on social media consumption too.

So little substance.

Need to devote more time doing. More time creating.

Who needs another "5 ways to boost growth" post? I click and am disappointed every time. Not again.

I don't want to poop on content marketing, but marketers need to step it up.

Or at least, founders need to know that doing something is not always better than doing nothing.

Why is content marketing not as effective as it used to be? An innumerable amount of factors...

But one things for damn sure.

Things have to change.

Two of the chief sins:
1. Unoriginal research/story/study/etc
2. Not having anything more to add that's meaningful

Why blog/podcast/vlog/etc about something that's already been said? Already been done?

Do we really need another interview with founder of x hot startup? Do we really need another ultimate guide about facebook ads?

Not all content is like this...

Sometimes, you get an occasional piece that truly leaves you better off than you were before. That doesn't make you want to skim.

An original case study. A first time interview with a founder. An honest account of an experiment. An explanation of a change, shift, or realization.
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