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#trading
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#stocks
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10
#traders
you should know and study:
1) Jesse Livermore
2) Richard Wyckoff
3) Bernard Baruch
4) Nicolas Darvas
5) William O'Neil
6) Stan Weinstein
7) Mark Minervini
8) Paul Tudor Jones
9) Marty Schwartz
10) Tom Basso
Who's missing?
10 deadly
#trading
sins:
1) Removing your stop loss
2) Chasing extended stocks
3) Buying a rumor
4) Extending a stop loss
5) Adding to a pos before earnings
6) Average down
7) Spontaneous trades
8) Shorting volatility
9) Big pos sizes in biotech
10) Shorting momentum stocks
#Institutions
don't buy a
#stock
because the
#chart
looks good. They are the reason why the chart looks good!
Institutions buy based on
#fundamentals
and stories. Their buying and selling activity creates the chart
#patterns
you look at.
90% of all traders would have better results if they β¦
1) follow the trend of the general market
2) remove ego
3) trade only liquid stocks
4) learn to use charts
5) apply simple position sizing and risk management
6) shut down PC after placing orders
What to add?
#Institutions
don't buy a
#stock
because the
#chart
looks good. They are the reason why the chart looks good! Institutions buy based on
#fundamentals
and stories. Their buying and selling activity creates the chart
#patterns
you look at.
MY ABSOLUTE FAVORITE STOCK FILTER: >70% distance from 52 week low Almost all stocks which are 70% above their 52 week low are in strong uptrends and show outstanding momentum. You can use this criteria in the free version of FinViz.
10 deadly
#trading
sins:
1) Removing your stop loss
2) Chasing extended stocks
3) Buying a rumor
4) Extending a stop loss
5) Adding to a pos before earnings
6) Average down
7) Spontaneous trades
8) Shorting volatility
9) Big pos sizes in biotech
10) Shorting momentum stocks
#Trading
tip: If you see a
#stock
exploding to the upside with huge volume (300% or more above the 50 day average volume), put it on a watchlist. It is often the begin of a big, new trend.
A
#trader
must be like a lion.
#Trading
is a waiting game and you have to wait for the best opportunities. Then take action. If you want action all the time, go to Las Vegas.
MY ABSOLUTE FAVORITE STOCK FILTER: >70% distance from 52 week low
Almost all stocks which are 70% above their 52 week low are in strong uptrends and show outstanding momentum.
You can use this criteria in the free version of FinViz.
MY ABSOLUTE FAVORITE STOCK FILTER: >70% distance from 52 week low. Almost all stocks which are 70% above their 52 week low are in strong uptrends and show outstanding momentum. You can use this criteria in the free version of FinViz.
90% of all traders would have better results if they β¦
1) follow the trend of the general market
2) remove ego
3) trade only liquid stocks
4) learn to use charts
5) apply simple position sizing and risk management
6) shut down PC after placing orders
What to add?
I only buy
#stocks
which are in a clear uptrend. A stock in a downtrend or after a 50% correction has too much overhead resistance. It needs a lot of demand to push prices back to a new high. A lot of those stocks fail. Go with the market, not against it.
10
#traders
you should know and study:
1) Jesse Livermore
2) Richard Wyckoff
3) Bernard Baruch
4) Nicolas Darvas
5) William O'Neil
6) Stan Weinstein
7) Mark Minervini
8) Paul Tudor Jones
9) Marty Schwartz
10) Tom Basso
Who's missing?
#Trading
tip: If you see a
#stock
exploding to the upside with huge volume (300% or more above the 50 day average volume), put it on a watchlist. It is often the begin of a big, new trend.
Why a trader loses money in
#trading
:
1) No plan
2) No stop loss
3) No backtested strategy
4) No education
5) No patience
6) No time
7) No discipline
8) No willingness to learn
9) No mindset work
10) No mentor
What else?
MY ABSOLUTE FAVORITE STOCK FILTER: >70% distance from 52 week low. Almost all stocks which are 70% above their 52 week low are in strong uptrends and show outstanding momentum. You can use this criteria in the free version of FinViz.
#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.
5
#trading
rules from William O'Neil:
1) Cut losses at 7%.
2) Take most profits at 20-25%.
3) Let profits run for at least another 8 weeks if stock is up >20% in 3 weeks.
4) Wait for a follow through day to buy stocks after a market correction.
5) Respect CANSLIM.
80% of all
#stocks
I trade had a base of at least 6 weeks before I bought them.
I want to make sure that the stock had enough time to consolidate and shake out many people before I buy them.
A rule of thumb: The longer the base, the longer the trend!
10
#chart
#pattern
you should know:
1) Cup and handle
2) Volatility contraction pattern (VCP)
3) Double bottom/top
4) Rounded bottom/top
5) Flat base
6) High tight flag
7) Ascending/descending triangle
8) Head and shoulders
9) Rising/falling wedge
10) Bullish/bearish pennant
The simplest
#edge
in
#trading
? Trend following!
1) Enter in the direction of a trend
2) Risk 1% from your total capital per trade
3) Use a 7% stop loss
4) Take profits with a EMA 65 or EMA 200 trailing stop
90% of all traders would do better with this approach.
#Trading
tip: If you see a
#stock
exploding to the upside with huge volume (300% or more above the 50 day average volume), put it on a watchlist. It is often the begin of a big, new trend.
5
#trading
rules from William O'Neil:
1) Cut losses at 7%.
2) Take most profits at 20-25%.
3) Let profits run for at least another 8 weeks if stock is up >20% in 3 weeks.
4) Wait for a follow through day to buy stocks after a market correction.
5) Respect CANSLIM.
80% of all
#stocks
I trade had a base of at least 6 weeks before I bought them. I want to make sure that the stock had enough time to consolidate and shake out many people before I buy them. A rule of thumb: The longer the base, the longer the trend!
If a stock goes 7% against me, I am out. No stock should do that. If a stock needs so much room after I bought it, my timing was wrong or I selected a too volatile name. I want to see that the stock is going into my direction immediately.
#Institutions
don't buy a
#stock
because the
#chart
looks good. They are the reason why the chart looks good! Institutions buy based on
#fundamentals
and stories. Their buying and selling activity creates the chart
#patterns
you look at.
#Institutions
don't buy a
#stock
because the
#chart
looks good. They are the reason why the chart looks good! Institutions buy based on
#fundamentals
and stories. Their buying and selling activity creates the chart
#patterns
you look at.
80% of all
#traders
lose money, 90% gave up before they make
#money
and it needs 7-10 years before they make money.
The most newbies in
#trading
are too confident that they will make it in this business. It looks too easy, but it's very hard. Be humble and start small.
#Trading
tip: If a trade falls 7% or more below your entry price, something is wrong. A trade should directly go up after you bought it. Otherwise your timing was bad. Work on this and do not extend your stop loss.
80% of all
#stocks
I trade had a base of at least 6 weeks before I bought them. I want to make sure that the stock had enough time to consolidate and shake out many people before I buy them. A rule of thumb: The longer the base, the longer the trend!
Compounding matters: If you catch 3 good rallies in the stock market in 1 year and you made 20% return on your account in every situation, your capital grew by 73%! If you focus on the right situations instead of trading all the time, you can make a fortune.
I ignore all stocks below the EMA 65! I do not look at them. If a stock is not in an uptrend, I am not interested in it. No matter how innovative the company is or how good the fundamentals are. Technicals first!
#Institutions
don't buy a
#stock
because the
#chart
looks good. They are the reason why the chart looks good!
Institutions buy based on
#fundamentals
and stories. Their buying and selling activity creates the chart
#patterns
you look at.
Moving averages I use in my
#trading
:
Daily chart:
8 day EMA = Short term trend and support.
21 day EMA = Support for mid-term moves.
65 day EMA = Defense line.
Weekly chart:
13 week EMA = Watch for pullbacks.
40 week EMA = Weekly defense line.
#Trading
tip: If you see a
#stock
exploding to the upside with huge volume (300% or more above the 50 day average volume), put it on a watchlist. It is often the begin of a big, new trend.
There is no reason to hold a
#stock
which goes sideways or is showing you a loss!
Sell it quickly and rotate your
#capital
into the next best
#trade
.
Remember: Wasted time means missed opportunities!
Stock traders often forget that 80% of all stocks move together! If the general market is weak or in a down trend, stop trading. The odds are against you! Patience is a key skill of a trader.
How to improve your chart reading skills:
1) Go through 3 charts of past big winning stocks every day
2) Study historical winners from books at the weekend
3) Look at the S&P 500 or NASDAQ too
4) Use daily and weekly charts
5) Print charts out and put them on your wall
10
#traders
you should know and study:
1) Jesse Livermore
2) Richard Wyckoff
3) Bernard Baruch
4) Nicolas Darvas
5) William O'Neil
6) Stan Weinstein
7) Mark Minervini
8) Paul Tudor Jones
9) Marty Schwartz
10) Tom Basso
Who's missing?
Paul Tudor Jones said: "Do not focus on making money; focus on protecting what you have." Means: It's not difficult to make money in the right market. It's difficult to keep it in a bad market!
#Trading
tip: If a trade falls 7% or more below your entry price, something is wrong. A trade should directly go up after you bought it. Otherwise your timing was bad. Work on this and do not extend your stop loss.
5
#trading
rules from William O'Neil:
1) Cut losses at 7%.
2) Take most profits at 20-25%.
3) Let profits run for at least another 8 weeks if stock is up >20% in 3 weeks.
4) Wait for a follow through day to buy stocks after a market correction.
5) Respect CANSLIM.
MY ABSOLUTE FAVORITE STOCK FILTER: >70% distance from 52 week low
Almost all stocks which are 70% above their 52 week low are in strong uptrends and show outstanding momentum.
You can use this criteria in the free version of FinViz.
My
#trading
looks like that:
1) Small loss
2) Small loss
3) Small loss
4) Small loss
5) Small loss
6) Huge profit
I can live with a low hit rate as long as I have huge winners! That's my way of making
#money
.
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!
I think about trading when I get up in the morning.
I think about trading when I go to bed.
I think about trading when I am driving the car.
I think about trading when I work in my garden.
I think about trading β¦
Trading is not a separate thing for me. It's a part of my life!
I ignore all stocks below the EMA 65! I do not look at them. If a stock is not in an uptrend, I am not interested in it. No matter how innovative the company is or how good the fundamentals are. Technicals first!
#Trading
is not a game for lazy people and people with too much other activities. It needs focus and time. Make a decision about your priorities and adjust your expectations accordingly. If you don't make trading your no 1 priority, don't expect too much!
#Trading
tip: A big mistake I did in the past was to continue buying breakouts while the market is a correction. After a few days, the stock returned below the breakout level and I got stopped out. Stop buying when the markets correct.
I would buy a
#stock
with outstanding
#technicals
but bad fundamentals. But I would never buy a stock with bad technicals and outstanding
#fundamentals
! Technicals are always more important than any number!
If a stock goes 7% against me, I am out. No stock should do that. If a stock needs so much room after I bought it, my timing was wrong or I selected a too volatile name. I want to see that the stock is going into my direction immediately.
"Your job as a trader is to wait for the best opportunities. Money is made stalking and sitting not being active & forcing a new trade each day."
Dan Zanger
80% of all
#stocks
I trade had a base of at least 6 weeks before I bought them. I want to make sure that the stock had enough time to consolidate and shake out many people before I buy them.
A rule of thumb: The longer the base, the longer the trend!
#Trading
tip: Count the pullbacks after a breakout:
β’ 1st pullback is a great buy.
β’ 2nd pullback is still ok.
β’ 3rd pullback should be avoided.
β’ 4th pullback never buy it.
The RELATIVE STRENGTH LINE is the most important indicator for me. I studied thousands of past winners and they all had one thing in common: They outperformed the market already before they took off!
The simplest
#edge
in
#trading
? Trend following!
1) Enter in the direction of a trend
2) Risk 1% from your total capital per trade
3) Use a 7% stop loss
4) Take profits with a EMA 65 or EMA 200 trailing stop
90% of all traders would do better with this approach.
Moving averages I use in my
#trading
:
Daily chart:
8 day EMA = Short term trend and support.
21 day EMA = Support for mid-term moves.
65 day EMA = Defense line.
Weekly chart:
13 week EMA = Watch for pullbacks.
40 week EMA = Weekly defense line.
MY personal biggest
#trading
mistakes:
1) Looking for a short term approach with more profits
2) Spontaneous trades because the chart looks good
3) Trade too much because I want to recover faster from losses
4) Try to catch a top in the market
5) Get distracted by social media
Paul Tudor Jones said: "Do not focus on making money; focus on protecting what you have." Means: It's not difficult to make money in the right market. It's difficult to keep it in a bad market!
10
#chart
#pattern
you should know:
1) Cup and handle
2) Volatility contraction pattern (VCP)
3) Double bottom/top
4) Rounded bottom/top
5) Flat base
6) High tight flag
7) Ascending/descending triangle
8) Head and shoulders
9) Rising/falling wedge
10) Bullish/bearish pennant
MY ABSOLUTE FAVORITE STOCK FILTER:
>70% distance from 52 week low
Almost all stocks which are 70% above their 52 week low are in strong uptrends and show outstanding momentum.
You can use this criteria in the free version of FinViz.
#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.
80% of all
#stocks
I trade had a base of at least 6 weeks before I bought them. I want to make sure that the stock had enough time to consolidate and shake out many people before I buy them. A rule of thumb: The longer the base, the longer the trend!
Moving averages I use in my
#trading
:
Daily chart:
8 day EMA = Short term trend and support.
21 day EMA = Support for mid-term moves.
65 day EMA = Defense line.
Weekly chart:
13 week EMA = Watch for pullbacks.
40 week EMA = Weekly defense line.
#Institutions
don't buy a
#stock
because the
#chart
looks good. They are the reason why the chart looks good! Institutions buy based on
#fundamentals
and stories. Their buying and selling activity creates the chart
#patterns
you look at.
Before your give up
#trading
β¦
- remember that the most traders needed 5-10 years before they became consistently profitable
- that there are many ways to trade successful
- investing into a mentor or coach can help you
- hard times makes you stronger
What else?
5 inspiring books for
#traders
:
1) The Richest Man in Babylon (Clason)
2) The Alchemist (Coelho)
3) Outliers (Gladwell)
4) Atomic Habits (Clear)
5) Power of Habit (Duhigg)
What else?
Compounding matters: If you catch 3 good rallies in the stock market in 1 year and you made 20% return on your account in every situation, your capital grew by 73%! If you focus on the right situations instead of trading all the time, you can make a fortune.
I ignore all stocks below the EMA 65! I do not look at them. If a stock is not in an uptrend, I am not interested in it. No matter how innovative the company is or how good the fundamentals are. Technicals first!
βThe whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when youβre wrong.β William J. O'Neil
Compounding matters: If you catch 3 good rallies in the stock market in 1 year and you made 20% return on your account in every situation, your capital grew by 73%! If you focus on the right situations instead of trading all the time, you can make a fortune.
#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.
#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.
5
#trading
rules from William O'Neil:
1) Cut losses at 7%.
2) Take most profits at 20-25%.
3) Let profits run for at least another 8 weeks if stock is up >20% in 3 weeks.
4) Wait for a follow through day to buy stocks after a market correction.
5) Respect CANSLIM.
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!
I ignore all stocks below the EMA 65! I do not look at them. If a stock is not in an uptrend, I am not interested in it. No matter how innovative the company is or how good the fundamentals are. Technicals first!
Don't ask what moving average you should use, test it!
Don't ask for a stock tip, create your own selection process!
Don't ask where to start trading, do research!
Don't ask what is the best book, read them!
Lazy people will never be
#successful
. STOP asking and START doing!
5
#trading
rules from William O'Neil:
1) Cut losses at 7%.
2) Take most profits at 20-25%.
3) Let profits run for at least another 8 weeks if stock is up >20% in 3 weeks.
4) Wait for a follow through day to buy stocks after a market correction.
5) Respect CANSLIM.
#Trading
tip: The strongest
#stocks
never revisit their breakout level. They move strongly direct after the breakout. That's how you recognize a potential big winner.
8 ways to destroy your
#trading
capital:
1) Trading too big.
2) Trade without a plan.
3) Listen to other traders tips.
4) No stop loss.
5) Take profits too soon.
6) Trade markets without liquidity.
7) Use a shady broker.
8) Trade against the trend.
What else?