Over trading is one of the top reasons I failed for 2 years

Here's how to stop overtrading and get rid of your trading addicition:🧵

The first key to stop overtrading is establishing a set of rules

Create a set of rules so you know when you SHOULD stop over-trading

It can be based on $ gain/loss or just the amount of trades taken

Either way, there needs to be a written list you can follow

The second key is having a hobby.

Something you can do once you've stopped trading

It could be...

-Working out
-Doing chores
-Talking to a friend
-Writing

As long as you have SOMETHING you can do everyday after trading

It should help you out

Adding market structure to your trading could literally turn you into a $10k/month trader

But learning what a real structure break is can take months...

So here's a thread on how to identify a break of structure:👇

A structure break is simply when price breaks a pivot high/low

But there are a few rules that help determine if that break is a real BOS

Because the opposite of a BOS is a stop hunt

Let's first go over what a stop hunt is.

A stop hunt is when price takes out a pivot and immediately reverses.

Here's an example on $NQ

Stop hunts are typically wicks and result in a strong move in the opposite direction

A break of structure is simply the opposite

And can be comprised of 2 different rules:

1. Continuation

After price breaks a pivot, look for continuation in that direction

You'll also want to see price stay above the pivot line

Here's an example on $TSLA

Every successful trader has a pre-market routine

Here's a premarket routine coming from a full-time trader:

I usually start my routine at 8:00am EST.

The first thing I do is check $ES and $NQ futures to see how the market moved overnight.

After that, I'll check to see how my open swing positions are if I have any

I'll also check the swing watchlist that I make every weekend

To see if any setups are getting close to my entries

After trading for 22 years (buy side & sell side institutionally), here are my thoughts about the current market. With social media being full of 'experts' who've never traded a bear market, I'd like to share a few decades worth of experience in this thread

1/ Last week $SPY rallied about 6%. Many social media 'experts' were calling for an end to the bear market (not us, we called it a 'short covering rally')

With that being said, remember this fact below about bear markets...

2/ 90% of traders MISS THE BOTTOM in a bear market. If the majority are calling it a bottom, you can be confident its likely NOT THE BOTTOM

3/ If you've only been trading since 2010, u don't know what the 'F' you're talking about RE: bear markets. You've had one, and it was a fly-by (5 weeks). GFC/2001 = ~2yrs bear markets

If you're from this generation, ur learning how to trade a bear market for the 1st time

4/ Also, if you've been trading since 10', you had one of the best decades in history w/some of the lowest volatility of any decade.

If u have been pandering the "buy the dip" theme last 2 years, you're likely from this generation.

99% of traders look at volume...

yet the majority of traders are using it WRONG

Here's how I used volume to make 6 figures trading last year:🧵

We all know the classic volume tips that we were told in the penny stock era...

Wait for a run up, then look for a pullback on LOW volume to get an entry

This isn't how you should be looking at volume...

First, let's start with what do I mean by volume

Volume Profile?

# of shares?

No.

I look at the volume BARS

The key is to look at relative volume compared to the previous candle bars

Low volume bars don't matter

The secret is in the high volume bars

Why?

Because high volume bars indicate REVERSALS (in most cases)

Take a look at $SPY

Notice the volume on each bottom?

I've been trading full-time for the past 3 years using my supply/demand strategy

Here's the ONE reason why you're supply/demand strategy isn't working: 🧵

Supply/Demand zones don't work by themselves.

You can't just buy every demand zone and sell every supply zone, otherwise the price would just wedge the whole time

Eventually one side has to break....

The key is following trend

Meaning you should only be buying demand zones that TAKE OUT the corresponding supply zone

Why?

It shows that demand exceeds supply

Buyers are stronger than sellers

Let's take a look at an example👇

Here's $RIVN

You can see that price failed to take out the corresponding high (supply zone)

This shows that sellers are still in control so you DON'T want to be buying at this demand zone

Here's $CRM

Demand is able to take out the previous supply zone (swing high)

This shows buyers are in control, so you want to be buying demand zones

I made $55,000 in 6 months on ONE trade.

A 600% return

Here's how you can turn typical 10% returns into 200%+ using long term options:

Let's not waste any time and get right into it👇

Long Term Options are simply a way to "invest" on a more aggressive way

There's a specific strategy that I use to pick stocks for long term options, but first...

let's talk about WHICH options to select:

With typical swing trades I always prefer going ITM.

Not the case for LEAPS.

With longer term options, I love going OTM

Decay isn't that much a factor and you'll be paying less per contract since leaps are already pretty expensive

Depending on the stock, I'd recommend going 20-30% OTM of the current share price

This is pretty loose, but the main concept to recognize is that you want the contracts to be ITM within 6 months

There will be a point where decay will kick in and for that you'd want to be ITM.

If you aren't sure about the strike, then go more ITM. It's always better to get closer to ITM then OTM.

Okay, let's move onto date to expiry:

12 tweets that will teach you more than a $4,997 trading course:

1) Relative Strength

Watch which stocks are green while the market is red

Institutions are most likely buying those up

2) Less is more

If you disagree with this, you're probably not a profitable trader

Take 1/2 the amount of trades you normally do and see what happens

3) The Market Doesn't Care About Indicators

You really think the funds putting millions of dollars into the market are "buying off a 9 ema"???

Get rid of your indicators

Just watch price and volume

4) Sell Options

Market makers, funds, banks, pretty much everyone other than retail is on the opposite side of your weekly OTM option

Collect premium and make money every week

Balance Theory is LITERALLY how stocks move

It can be used in all types of trading

Here's a breakdown of what it is and how I made close to $2,000 using it👇

Balance Theory is based upon the thesis that stocks are either trading in "balance" or out of "balance"

So what exactly is balance?

Balance can also be considered fair value. A price area where buyers and sellers are both comfortable trading.

You will see a balance area in zones where price is typically choppy.

You should be able to see clear support and resistance areas.

Here's an example on $BA

So how do we use this in our trading?

There's 2 ways that a stock will react to balance.

I'll go in depth on both.

The first one is a breakout👇

A breakout of balance is fairly simple.

Price is in fair value. Over time, one side (either the buyers or sellers) has to give up and the stock breaks out of balance.

It's no different than any other breakout.

Here's the example on $BA

@putcall8 Hello! This thread is older than a week. To save it, please reply to the last tweet in the thread with the "save" keyword. Thanks!

Ever wonder what the best tools for trading are? 🔨

Here are the top tools I use as a full-time trader🧵

👇👇👇

Before you read this, please RT the first tweet above this.

There's room for everyone to make 6 figures in 2022 and I want this to reach everyone that aspires to do so🙏

Here we go 👇

1. Tradingview - @tradingview

Tradingview is the main charting platform I use.

It’s very clean and easy to use.

Also free for anyone wanting a basic charting platform with all the best features👏

2. Thinkorswim - @thinkorswim

Thinkorswim is an amazing charting platform similar to tradingview.

Everything is free and the possibilities are endless with this platform.

The main reason I love it?

The ability to chart individual options👇

3. TD Ameritrade - @TDAmeritrade

TD Ameritrade is the best overall broker in my opinion.
Customer service is great, commissions are low, and you have free access to thinkorswim.

Can’t be better than that🤌

Do you hop from strategy to strategy?

Can’t find consistent results?

Here's a step by step plan to fix that
👇👇👇

Before we dive into how to fix it, we need to understand WHY we do this.

I’ve done it before, most people do it. It’s a common fault of trading.

The reason we do this is because we don’t have the confidence in a strategy that actually works.

What do I mean by works?🧐

I mean something that has been PROVEN and BACKTESTED to be profitable✅

For example, you may be trading inside day breakouts. What is the win% of that strategy?

What’s the average risk/reward ratio?

If there’s no way to define those numbers, you are gambling 🎲

Now we have addressed the problem.

Let’s get into how we fix it👇

If you're thinking of giving up on trading...

read this first👇

(my story)

During the beginning of my trading journey, there were many times where I thought of giving up.

The first year I really was committed.

Then towards the second year, I really started thinking, “Is this really for me?”

I knew I had a strong passion for trading.
It’s what kept me in the game for so long.

But after 2 years of losses, I thought maybe I was meant for another business.

But there was always that “What if” thought running through my head.

What if I’m right there?

What if tomorrow starts the day where I become consistently profitable?

That thought never left…

It wasn’t until I found Supply and Demand Trading.

It changed the game for me.

It simply just made sense.

I cut out all the useless indicators I was using and started studying.

Slowly but surely, it started working

I turned $500→ $2,200 in 10 days🤯

Here’s how I did it 👇

Before we dig into the strategy breakdown, let’s first look at the results

In 10 trading days, I turned $500→ $2,200 with only ONE of those days resulting in a loss💰

Out of 11 trades, only 2 of them were losses💪

I had an 81% win rate. Not too shabby right? 😆

To see my daily results (proof), search my name on twitter with the tag #SAC

Ok, let’s breakdown the strategy now👇

For this challenge, I focused on scalping options using my institutional levels💰

(I will have more info on how I find institutional levels in the future)

My goal everyday was to get a quick 10-30% gain and then get out🏃‍♂️

For the most part, I succeeded in that. There were only a few times where I got greedy and went for a higher % gain

This strategy made it so I was done for the day in usually an hour after market open⏳

10 hours MAX of “work” led to ~$1,700 in profit 🔥

Making $1k/month is great, but $10k/month is even better💰

Here are 5 things you NEED to master to grow your trading to $10k per month🚀
👇👇👇

1. Trading a Proven System
Trading with a winning and proven system is key to consistency in the markets 🔑

In order to scale to $10k/month, you’ll need to have a strategy that can make you $1k/month🎯

Consistency is the most important aspect for growing a trading account, and a proven strategy will help you get there👇

2. Controlling Emotions
Trading is a marathon, not a sprint. If you go from using $5k for each trade, to using $50k for each trade, your emotions will play a role.

You CANNOT trade with money that you aren’t willing to lose 🙏

Slowly build your account by increasing your size each week 🦥

Going from $1k - $10k shouldn’t be overnight❌

It should take months for that to happen so you are COMFORTABLE trading with a bigger size✅