Thread - Self Awareness
Cut your losses, Let your winners ride.
Very few have mastered this game despite it being used so commonly on every book, youtube video or Twitter.
Looks so simple and its the toughest to execute.
#StockMarket #stocks #trading
Cut your losses, Let your winners ride.
Very few have mastered this game despite it being used so commonly on every book, youtube video or Twitter.
Looks so simple and its the toughest to execute.
#StockMarket #stocks #trading
With amount of reading that I have done, knowing several ways to ride the trend and knowing only sitting makes money in a bull market, I have never been able to sit through the trends?
Why is sitting so tough?
That's because of the following things
#StockMarket #stocks #trading
Why is sitting so tough?
That's because of the following things
#StockMarket #stocks #trading
1st Issue
Riding a long trend and aspiring for a huge return also requires you to let go of a huge profit from the top when the trend ceases. But, If you want to make a 2x,3x trade, you should be ready to give away 25-30% from the top.
Riding a long trend and aspiring for a huge return also requires you to let go of a huge profit from the top when the trend ceases. But, If you want to make a 2x,3x trade, you should be ready to give away 25-30% from the top.
Despite knowing this so well, I couldn't digest losing so much from the top. So, my entire system was selling into strength or minor weakness.
All along I have sold into strength through various methods.
#StockMarket #stocks #trading
All along I have sold into strength through various methods.
#StockMarket #stocks #trading
Every time I sold into strength is because of the doubt that I could never handle huge drawdowns from the top.
2nd Issue
It is always said that 80% of the moves happen in 20% of the time. Riding a long trend also requires you to sit through bases where there is no action.
2nd Issue
It is always said that 80% of the moves happen in 20% of the time. Riding a long trend also requires you to sit through bases where there is no action.
There are a lot of stocks which are moving when your stock is making a base. I always say the other queue always moves faster. Most people wanting action would cut the slow movers with some excuse and would see the stock making amazing moves by sitting on the sidelines.
#stocks
#stocks
This issue has never been my problem whereas most people suffer with the issue of lack of action.
5 Years down the line, I wanted to have more time for myself away from the screen and still generate a CAGR of 25%.
#StockMarket #stocks #trading
5 Years down the line, I wanted to have more time for myself away from the screen and still generate a CAGR of 25%.
#StockMarket #stocks #trading
A less Action, more sitting option can happen only if can ride the trend meaningfully. This would mean I should counter the discomfort of losing my profits from the top. A change in exit style was warranted.
A Transition plan was to be in place and how am I handling it?
#stocks
A Transition plan was to be in place and how am I handling it?
#stocks
My only issue is developing the stomach to sit through huge drawdowns from the top and leaving money on the table. To test whether, I could handle this, I moved a part of my selling into Weakness in series 16 & 17.
It takes a long time for me to make up my mind
#StockMarket
It takes a long time for me to make up my mind
#StockMarket
and put it into the rule sheet. Once I put them in a rule book, it get's really easy for me to operate. I trust the system and move forward.
This is where my discipline trumps everything else in the market.
Right before the crash, I had a portion of #BLS which had done 100%
This is where my discipline trumps everything else in the market.
Right before the crash, I had a portion of #BLS which had done 100%
from my initial entry. I had #mazdock which was up 45% from initial entry. I was riding on solid gains in these 2 counters. Apart from these, I had a few more with gains of almost 20% from Initial entry and their trailing SL was almost near cost.
During the crash, All stocks
During the crash, All stocks
Strong conviction in system cannot come through just back testing but through putting that knowledge to test through accurate execution.
Since, I did well in this transition, I am planning on altering these 2 things going forward
#StockMarket #stocks #trading
Since, I did well in this transition, I am planning on altering these 2 things going forward
#StockMarket #stocks #trading
Selling into strength - Today its done by selling 50% once the stock moves 16-20% from entry. Here, I am looking to use a Shorter Moving Average to trail or look for a huge price rejection bar to exit my 50%
Selling into weakness - Today, I close it based on 20DMA and 15% Rule
Selling into weakness - Today, I close it based on 20DMA and 15% Rule
A Rule where I look for certain price action when the stop closes below 20DMA or 15% from top, whichever is farther. This one is known for everyone on telegram. I might be planning to move the same rule to 50DMA and 15%. I will be handling deeper drawdowns.
Handling deeper drawdowns means getting ready for a longer ride.
Takeaways from the above?
Define your Strength ? Adherence to System
Define your Weakness ? Not able to Sit through Drawdowns
Define Transition Plan
Self Awareness is king.
#stocks #StockMarket #trading
Takeaways from the above?
Define your Strength ? Adherence to System
Define your Weakness ? Not able to Sit through Drawdowns
Define Transition Plan
Self Awareness is king.
#stocks #StockMarket #trading
The following are the people who I respect a lot in the market.
Please do provide your views when time permits
@StocksNerd @swing_ka_sultan @VVVStockAnalyst
@SSalim0002
A request to everyone. Please retweet if this is sensible
Please do provide your views when time permits
@StocksNerd @swing_ka_sultan @VVVStockAnalyst
@SSalim0002
A request to everyone. Please retweet if this is sensible
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