The Coffee Addict Trader

observing mathematical behaviors of market

[Usman Ashraf @usmanashraff]

The strategy is a piece of cake if you can master these 4 things on the emotional side of trading.

Most traders never work on this side of the business.

That's why they stay stuck. 🧵

[Lone @lonextrades]

Qullamaggie on You Need a Special Type of Mentality for Trading

“Oh man it’s so funny, the one I stay patient on goes down and the two ones I get impatient on, CODX and VTI, they go up 60% and 80% respectively in a few days. I mean, you really need to be a special type of person to make it in trading. It’s constant mind fucks. They can really get to you, constantly get fucked all over. Like every day you get fucked on something. Variance, okay. I call it getting fucked. Oh, so there is a word for it: variance. Okay, it sounds like your specialty. Yeah yeah exactly.

It pisses you off, it frustrates you. I mean yeah. You really need a special type of mentality for trading, absolutely.”

[Lance Breitstein 🇺🇸🌎 @TheOneLanceB]

most haven’t made chris camillo money. most don’t have chris camillo risk tolerance. and most shouldn’t.

one cannot judge whether a risk management decision was right for someone else.

one can all only judge if the decision would be right for them.

[The Coffee Addict Trader @OkakoTrading]

@TheOneLanceB How they manage risk based on their intuition is what separates beginners from experienced traders.

[The Coffee Addict Trader @OkakoTrading]

And how they risk on the intuition that's create the difference between beginner and experienced trader..

:

[Lance Breitstein 🇺🇸🌎 @TheOneLanceB]

How to fail at trading:

Trust your intuition when you are a beginner trader.

How to succeed at trading:

Trust your intuition when you are an experienced trader.

[Lance Breitstein 🇺🇸🌎 @TheOneLanceB]

When @Qullamaggie famously says: “Nobody is smarter than the moving averages.”

What he is really saying is:
“Nobody is smarter than the prevailing trend.”

And that principle has remained true now for decades, likely centuries, if we had the data.

[The Coffee Addict Trader @OkakoTrading]

@TradersConf I can feel you bro

[Lance Breitstein 🇺🇸🌎 @TheOneLanceB]

END OF THE MONTH REMINDER FOR TRADERS!

Every single trader you see on here posting their big months and big wins is subject to selection bias. Most of the traders who underperformed or lost money are invisible.

Much of the PNL that gets posted comes from a position of insecurity, seeking the affirmation of others. For most of them, you do not see their losses or their struggles. You do not see their PNL on the bad months. I know from behind the curtain, many of even the most respected traders fall victim to this. This dynamic is part of the toxicity of social media and the comparison game.

This reminder is to focus on your own game. Become your best self. And that there is a whole lot more to life when you step away from the screens. PNL should not define you. Get outdoors, spend time with others, and give back. Remember how lucky you are to be pursuing an incredible job, but also remember that once you step off the field, this game doesn’t matter at all.

[Ted Zhang @TedHZhang]

I suspect @Qullamaggie, even as good as he is, started trailing stocks on longer timeframes late 2021 into 2022, which led to massive open PnLs being given back.

When the going gets good, our minds start extrapolating deep into the future precisely when we should be bringing oursleves back to reality.

[Alex Hormozi @AlexHormozi]

You feel lost because you’re not who you once were but you’re also not who you want to be yet.The middle is when the work matters most. You're not on the wrong path, you're just not done yet.

[Ajibola @4jibola]

nobody warns you how quickly you go from 18 to 25.

[The Coffee Addict Trader @OkakoTrading]

Position sizing is the saddle of your trading mind

know your mental capital, respect it, and stay below it.

[The Coffee Addict Trader @OkakoTrading]

https://t.co/6zrZFSCSPB

[Lone @lonextrades]

Qullamaggie on Everything That Happens to You in Trading Is Your Fault

“Mindset — a rant on mindset. Oh, I don’t know, what should I say about mindset? It’s easy to be in that victim mentality, always looking for reasons for everything, or something to blame, or someone to blame. You can see it in the chat every single day — a bunch of whining, moaning, bitching. There’s always something.

Get out of that mindset. Everything that happens to you in trading, is your fault. If you lose money on a trade, it’s your fault. It’s not the market makers that were gunning for your stops. It’s not Biden who announced something, blah blah — no, it’s your fault. Yes, responsibility and fault.”

[Ted Zhang @TedHZhang]

Kristjan Kullamagi @Qullamaggie going over Jesse Livermore's 21 Trading Rules, written in 1940.

[Lone @lonextrades]

Qullamaggie on Why He Makes Millions Trading and Others Don’t

“The difference between me and everyone else not making millions? Yeah, study time setups. The people not making millions, they don’t have a setup. They don’t have a profitable setup because they haven’t studied the markets.”

[Ankur Patel @AnkurPatel59]

Qullamaggie's 3 Timeless Setups Simplified

Kristjan Qullamaggie has made tens of millions trading 3 simple setups. These setups occurred last year, 10 years ago, 50 years ago, and 100+ years ago. They occur over and over again.

1. Breakouts

Big move higher in the past 1-3 months. Orderly pullback with higher lows. Range expansion out of that consolidation.
How to trade it:
Enter on opening range highs when the stock breaks out
Stop at lows of the day (not wider than ATR/ADR)
Sell 1/3 to 1/2 after 3-5 days, move stop to breakeven
Trail the rest with 10-day or 20-day moving average
In bullish markets, these can give you 10-20x+ your initial risk if you're good at setup selection.

2. Parabolic Short (or Long)

Stocks are like rubber bands. When they get stretched short-term, they snap back hard.
How to trade it:
Stock up 50-100%+ in days/weeks (larger cap) or 300-1000%+ (smaller cap)
Up 3-5+ days in a row
Short on opening range lows or wait for first crack and fail at VWAP
Target is 10-day and 20-day moving averages
5-10x risk/reward, but higher win rate than other setups

3. Episodic Pivot (EP)

When unexpected good news hits a neglected stock, it can trigger multi-month or multi-year moves. Usually earnings or guidance that surprises the market.
How to trade it:
Big move (or gap up) in price 10%+
Big volume (preferably average daily volume traded in first 15-30 minutes)
Big growth numbers with significant beat to analyst expectations
Best if the stock hasn't rallied in the past 3-6 months
Enter on opening range highs. Stop at lows of the day. Trail with 10-day or 20-day moving average.

All of these setups are about finding low-risk entries on fast-moving stocks. Tight, high-probability areas to enter. High risk/reward on trades. You can be profitable with just a 25-30% win rate if you have small losses and big winners. Qullamaggie built an Evernote database over 7-8 years tracking thousands of these setups. He went back decades on thousands of stocks to find recurring patterns.

#Trading

[Qullamaggie Wisdom @QullamaggieHQ]

Q showing how momentum stocks move.
He then shows his full strategy.

I'm gonna show you like, this is the basic premise.
You have a strong stock makes a big move, it doesn't matter if this is a one month move or a three month move or a six month move doesn't matter the time frame but it has to be in the top one or two percent of the strongest stocks in that time frame and then what happens is they usually pull back, so then you have a moving average, this may be the 10sma or the 20sma or the 50sma. the best ones are the 10 and 20.
And then it gets tight, it starts getting tighter and tighter goes sideways starts building higher lows and it's just surfing the moving average.
then they break out of this tight range and the best ones are the ones that show relative strength like the ones that can't break that can't go lower even if the indices overall are showing weakness and going lower and these things just you know they can't break lower or they may even be building higher lows.

I'm gonna show you like a perfect perfect perfect perfect one like this $SHOP this is a perfect looking entry this is had a big big move......

[Ted Zhang @TedHZhang]

"Opinions are shit" ~ @Qullamaggie

Source: Swing Trader Master Class playlist video 1

[The Coffee Addict Trader @OkakoTrading]

26 pairs. 4 scans a day. That’s 520 chart scans a week — and people still say Forex lacks swing trading opportunities. The issue isn’t the market, it’s your ability to spot them.