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Just sifting through my trading notes for 2020. Thought I would share some zingers. Hope this provides some value to you all.
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Entry is so important. It literally defines risk reward. Never overpay.
Morning session strength is an opportunity to sell not to buy,
Buying stocks on news in the open session is gambling. Stronger price action comes with no news.
Brain fades happen. It's how quickly you re-calibrate that matters.
Know your average holding time for winners and losers. Anything outside of these parameters needs to be cut loose more often than not.
When on a losing streak, keep taking trades but tighten up risk reward and position sizing.
Market indexes have very little correlation to small/mid caps. Ignore them more often than not.
Feel free to try different strategies. But if experimenting reduce risk by 50%. Most of the time there wont be enough risk on to be interested. So stick to your trading plan idiot.
If your going to pre-empt a technical pattern stock break. You may as well be a fundamental investor. You're not, so don't be a hero, wait for confirmation.
Only add to trades after consolidation with a clear break higher on volume.
Adding purely on pullbacks will kill your risk/reward.
Adding purely on pullbacks will kill your risk/reward.
Only add to trades that are FULLY financed by the incumbent trade profit.
Adding to a trade must never result in a loss. B/E if the worst case scenario for a trade that has been added too.
Volume is everything. Take a break on weak volume, you're asking for trouble 7/10.
Develop sit out power. If A+ trades are not working. SIT THE F OUT IDIOT.
Do Not Act on other traders posts. They are merely a reference point. You must run your own race. If you cannot help yourself. You must mute them. It's not sustainable to give more credit to other peoples opinions than your own.
Do not document or get caught up in trades you didn't take. The only trades that matter are the trades you enter. Run your own race.
Hold your f------ nerve. The market will be here tomorrow.
Ends
