LAI

Trading since 2019 Dec

[Ariel Hernandez @RealSimpleAriel]

Gap-ups in a weak tape tend to invite more selling.

First, you have trapped longs who finally get a chance to unload shares at better prices.

Then you have savvy short sellers who recognize we’re still in a sell cycle and use that gap-up into supply to initiate or add to positions, expecting further downside.

That’s why chasing gap-ups in a weak market is rarely a high-probability trade. Let the morning shake out, let supply get absorbed, and then see if buyers can actually reclaim control.

[Nathan Bancroft @n_bancroft2]

Whenever the market slows down and doesn’t suit my style I always go back and listen to Amrit Sall’s chapter in Unknown Market Wizards to keep myself in check and remind myself of the importance of waiting for better times.

The ‘Unicorn Sniper’ known for his incredible patience to sit and wait for the next fat pitch.

His results are absolutely mindblowing, an average annual compounded return of 337% over 13 years.

Some of my favourite quotes from his interview below:

‘The big trades are pretty simple, you don’t have to go looking for them, but you do have to wait for them.
Trading opportunities in the market ebb and flow, there will be periods in the market where the opportunities dry up and there will be nothing to do. In those nothing periods if you’re looking for something to do, that is when you can create real damage to your account.’

‘I now know that 90% of the time the market is not going to provide any opportunities, and 10% of the time I am going to make 90% of my profits.’

‘It’s what you don’t do that counts. Patience is the key word, successful trading is the art of doing nothing, it’s what you don’t do between the real trade opportunities that will determine your success in the long run. You can do so much damage to your mental capital between trades that when the big trades turn up , you’re not ready for it.’

[dnap @dnapway]

Martin Shkreli reveals what separates great traders from everyone else

"Traders are risk managers, fundamentally. Alpha is critical, but you cannot be a trader without excellent risk management."

"You have to be able to get out of a losing position, which for so many people is really hard to do. To a great trader, it's very easy. But you also have to be able to resist lots of different impulses. You can't be impulsive.

"That's why not many people are great traders. If anybody could be a great trader, you could easily get to a billion dollars in your personal account, but it's very hard."

"Bad traders will either change their mind too quickly, or never at all. Eventually, enough stubbornness will lead you to bankruptcy. But if you unloosen that screw too much, that's not very good for stocks you really believe in that could go up 10 or 20 or 30X."

"Good traders know when to get off the ride and not overstay their welcome, which I recommend after a 10x, 20x, 30x. You don't need the last 2x, you got most of it."

"You're not paid to calculate, analyzing, channel checks, modeling, research. You're paid to make this line of PnL go up. That's the only part of the job that matters. It doesn't matter if you were right in the long run. All that matters is this line going up."

[ludoonchart @ludoonchart]

Paul Tudor Jones on trading through chaos:

"if you're going to bet big, you have to be ruthlessly objective about your position. you can't sit down in there and double down."

in this interview Paul Tudor jones talks with Stan Druckenmiller about what separates the top guys from the rest

bookmark and watch the video below

[LAI @LAITHEGUY]

@mossada30 @TheShortBear Or you can skip the entitlement & pocket-watching, pay the subscription and extract as much knowledge & value as you can from it. Only thing that matters is if their service/product actually provides true value. These aren't Furus.

[Qullamaggie Wisdom @QullamaggieHQ]

𝘿𝙤𝙣'𝙩 𝙗𝙪𝙮 𝙗𝙧𝙚𝙖𝙠𝙤𝙪𝙩𝙨 𝙞𝙣 𝙘𝙤𝙧𝙧𝙚𝙘𝙩𝙞𝙫𝙚 𝙢𝙖𝙧𝙠𝙚𝙩𝙨.

So I'm down 120k on my longs. I should have just not bought any breakouts. Don't buy breakouts in corrective markets. Just remember that mantra. I just get so tempted sometimes. I get so tempted, man. I really get tempted. No bueno.

[Adam Shuaib @adamshuaib]

You can grind your way to the top 10% of most fields, but the top 0.1% works differently; it's reserved for people who've found their work so absorbing they've stopped noticing the grind at all.

Tesla often forgot to eat. Edisons assistants said he couldn't understand why his employees got tired. He'd hammer at a problem for 30hrs, then look up confused that everyone had gone home and assumed they were sick. Buffett, in his nineties, reads 500 pages of annual reports a day for fun.

People assume these people had super-human willpower, but they actually had a completely different relationship with effort; the effort in itself was the reward. Forcing yourself to work hard is exhausting, but not being able to stop is something totally different. The biggest rewards in life come to the people who don't experience hard work as work at all.

[LAI @LAITHEGUY]

@Maximum2893 @terencecrawford Honestly.. i was thinking your profile screamed wanna-be, but you prob have more experience than me w/ your reasoning level & temperament, must be CTE 🤣

[LAI @LAITHEGUY]

@Maximum2893 @terencecrawford Sure you have. Even Arman admitted boxing is more difficult. Proof is in the starting age of world champs. Get your emotional ass to therapy & start meditating lol

[LAI @LAITHEGUY]

@Maximum2893 @terencecrawford Can prob agree MMA is more difficult PHYSICALLY since MMA deals more with broken bones, sprains, tears, etc. But boxing ain't no walk in the park. It's way more volume damage to the brain. It's the technicality difference that makes boxing way more difficult at the top level.

[LAI @LAITHEGUY]

@Maximum2893 @terencecrawford Now that comparison is a dumb take. You have a lot of bias and discount TECHNICALITY difference. Boxing combines both technical & physical which makes it the most difficult. You try getting in a boxing ring with some elite teenagers & you'll get washed even with ur MMA exp.

[LAI @LAITHEGUY]

@Maximum2893 @terencecrawford Boxing is the hardest sport to do at top level. That's why all world champ boxers started very young like 5-8. And why MMA fighters can start at 18-20 and become world champ

[stockbee @PradeepBonde]

I am half way through the new Market Wizards book, and few things stand out insane work ethics, self leadership, self belief bordering on delusion and ability to go deep once they found setup ideas.

[Kyna Kosling @KynaKosling]

Dan Zanger made $42 million in 23 months.

…then lost 75% of it.

Since Dan made his record run in the dot-com bubble, he must have given his gains back when the bubble popped… right?

Not exactly.

Lessons on environment:

[Kyna Kosling @KynaKosling]

@anandragn

[Anand @anandragn]

This might be the best 30 seconds one can spend this weekend.

2005 or 2026, some things just remain timeless.

Also, it’s summer right? ☀️

[Tito A @GnT_Trades]

Good morning fam

Thursday reminder: the best traders aren't the ones who trade every day. They're the ones who know which days are theirs. If today isn't yours, let it go. Tomorrow might be.

Take care of yourselves.

[Qullamaggie Wisdom @QullamaggieHQ]

𝗤 𝗼𝗻 𝗽𝘀𝘆𝗰𝗵𝗼𝗹𝗼𝗴𝘆 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗯𝗼𝗼𝗸𝘀, "𝗷𝘂𝘀𝘁 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻 𝘆𝗼𝘂𝗿 𝘀𝘆𝘀𝘁𝗲𝗺 𝗮𝗻𝗱 𝗺𝗮𝗸𝗶𝗻𝗴 𝗶𝘁 𝘄𝗼𝗿𝗸 𝗳𝗼𝗿 𝘆𝗼𝘂."

The problem is I'm not a fan of these psychology books. The thing is, if you have a successful trading methodology, if you have a system that works, you don't need any trading psychology. I've read a few of these; I've read the Kiev books. There's another trading psychology, Brett Steenbarger, and there's one more I think that's pretty famous.

But the thing is, just focus on the system and focus, try to understand when it works, when it doesn't work, when you should push, when you shouldn't push. All of these trading psychology books are pretty unnecessary. You don't need any of them. Just focus on the setups and the systems, develop something that works for you.

[J Law @JLawStock]

After a market correction is over, don’t be too quick to sell the stocks that rally first and show the strongest relative strength.

That is not always “risk management.”

In many cases, it actually increases the risk of missing a potentially massive winner.

Even today, I still make this mistake sometimes.

Why?

Because the stocks that recover first after a correction are often not just random bounce plays.

They are usually the names where money is flowing back first.

They show relative strength before the crowd fully realizes the market has turned.

They may be the next leaders of the new uptrend.

Real risk management is not selling a strong stock simply because it has gone up.

Real risk management is managing position size, knowing your invalidation level, and watching whether the price action actually breaks down.

If a stock remains strong, money is still flowing in, and the fundamentals and narrative are still intact, selling too early can actually be poor risk management.

So the key is not “never sell.”

The key is:

Don’t sell the strongest market leaders too easily just because you are afraid of giving back existing profits.

Many times, what truly changes your trading return curve is not taking small profits again and again.

It is whether you can sit through the right leaders long enough during a real market uptrend.

[Lone @lonextrades]

Qullamaggie on You Cannot Be a Mediocre Trader

“You can’t be a mediocre trader. You can be a mediocre lawyer, you can be a mediocre doctor, you can be a mediocre firefighter — but you cannot be a mediocre trader. Because a mediocre trader doesn’t make money. You’re not gonna make money — you’re gonna lose money.

To get good at this game, you need to put in a lot of work. I used to put in a lot of work outside of market hours — studying past setups, studying market leaders, studying many other markets, reading articles, reading books, trading finance. You have to absorb it all: studying other successful traders, what methods they used, what principles they had.

Nowadays I don’t do it as much, but I still do it. I can spend the whole weekend just reading and studying market-related stuff, trading-related stuff.”