The absolute best trading indicator in the world is your gut.
You can spend years looking for the best trading indicator.
Or you can just read this:
The absolute best trading indicator in the world is your gut.
Your intuition only becomes finely tuned after a lot of trials and errors.
Let me explain...
As traders, intuition is how we make decisions without conscious thought.
In other words, the more you trade, the more accurate your intuition gets.
Intuition is no different from muscle memory.
...and you don't have to think or overthink how to do something.
Your intuition is familiar with how this pattern (likely) plays out.
Way more efficient. Right?
The more observant you are, the higher quality your memories will be.
The higher the quality of the memory, the more informed your intuition will be.
You always work within a framework...
It means that with proper focus, education, and TIME — your gut feelings will become incredibly accurate.
The absolute best traders don't think so much... they just execute.
1. Follow me @NickSchmidt_ for more.
2. RT the tweet below to share this thread with your audience.
https://t.co/nHS6ETwThr
3. Have an amazing Friday. 💙
You can spend years looking for the best trading indicator.
— Nick Schmidt \U0001f981 (@NickSchmidt_) April 8, 2022
Or you can just read this:
More from Traderlion
The market’s best investors have made millions from the simple saying:
“Buy right, sit tight”
Sounds simple - but what does “buying right” even mean?
Use TraderLion's 10-Step Ultimate Guide to buying right 👇
By the end of this thread, you'll know how to:
1. Build an objective list of buy criteria
2. Have 10+ real world examples to study
3. Increase your win rate.
4. Increase your profitability
Let's dive in!
Buy Rule #1: The General market must be in an uptrend.
3 out of every 4 stocks follow the market trend both to the upside and to the downside.
This means that if you are buying a breakout in a downtrend, it already has a 75% chance of failing!
It doesn't matter if the stock is in a leading group with an impressive RS line and strong fundamental story.
At the end of the day, market direction is the MOST important factor!
Here's an excerpt from How To Make Money In Stocks by stock market legend William O'Neil:
Here's another video by @richardmoglen that will help you determine if the stock market is in a downtrend:
https://t.co/shD5OjkP6s
Let's move on to #2.
“Buy right, sit tight”
Sounds simple - but what does “buying right” even mean?
Use TraderLion's 10-Step Ultimate Guide to buying right 👇
By the end of this thread, you'll know how to:
1. Build an objective list of buy criteria
2. Have 10+ real world examples to study
3. Increase your win rate.
4. Increase your profitability
Let's dive in!
Buy Rule #1: The General market must be in an uptrend.
3 out of every 4 stocks follow the market trend both to the upside and to the downside.
This means that if you are buying a breakout in a downtrend, it already has a 75% chance of failing!
It doesn't matter if the stock is in a leading group with an impressive RS line and strong fundamental story.
At the end of the day, market direction is the MOST important factor!
Here's an excerpt from How To Make Money In Stocks by stock market legend William O'Neil:
Here's another video by @richardmoglen that will help you determine if the stock market is in a downtrend:
https://t.co/shD5OjkP6s
Let's move on to #2.
How to time the market (thread)
There is the old saying that “Time in the market beats timing the market” The chart below from Dr. Wish’s @WishingWealth presentation at the @TraderLion_ conference shows that to be false.
Full presentation: https://t.co/o2f21GBXci
The green line is unattainable realistically, however, missing volatile times during corrections yields better performance than buy and hold and we can aim for the green line.
Investors usually only show the gray and red results.
More
There are many strategies for investing/trading in the stock market operating within different timeframes and with different objectives.
That is of course what creates a market and opportunity. Timing the market may not be what works for you or what fits your goals/lifestyle.
However, everyone involved in the market is here to make money over time and corrections can cause huge drawdowns in the high alpha names negating incredible performance during strong market uptrends.
There is the old saying that “Time in the market beats timing the market” The chart below from Dr. Wish’s @WishingWealth presentation at the @TraderLion_ conference shows that to be false.
Full presentation: https://t.co/o2f21GBXci
The green line is unattainable realistically, however, missing volatile times during corrections yields better performance than buy and hold and we can aim for the green line.
Investors usually only show the gray and red results.
More
There are many strategies for investing/trading in the stock market operating within different timeframes and with different objectives.
That is of course what creates a market and opportunity. Timing the market may not be what works for you or what fits your goals/lifestyle.
However, everyone involved in the market is here to make money over time and corrections can cause huge drawdowns in the high alpha names negating incredible performance during strong market uptrends.
