📈 Be Like Ted - The Science of Swing Trading ⚾
If you're a swing trader, it helps to think like Ted Williams and establish an "n-cell strike zone" i.e. a grid of setups, each with its own odds for pitch selection.
Either through rigorous backtesting or by analyzing your own results, it's extremely beneficial to know:
- what zone the pitch is in (what is the setup)
- how the stats look for that zone (historical results of that setup: avg win / avg loss, profit factor, reward-risk, Calmar ratio, etc.)
- when to "swing the bat" (take a trade)
- how big a swing to take (position sizing)
- how often they occur (setups per week / month / year)
- when to sit it out because I will strike out (stay on the sidelines)
Swinging the bat in the right zones (such as an uptrending market, leading stocks in leading industry groups) is far more beneficial to your trading and your mental health than solely focusing on picking individual stocks.
If you want to improve your trading … think like Ted. 🧠
Pic 2 is from: https://t.co/JsTlQmIHZl
I had the honor and privilege of speaking with George Coyle @gfc4 today, Co-Author of the upcoming Market Wizards book!
We spoke about what brought George into the world of writing, his connection with Jack, stories of traders mentioned in the book, and much more.
What I found most interesting was learning that not one of the market wizards need to share a similar mind set or common heuristics. Being great in this career is not one size fits all!
As traders we should all aspire to be much like the gentleman written about in this book!
Thanks again George and I look forward to speaking with you again 🤝
Backtesting Analysis With Claude - * Livestream *
I had the honor and pleasure of an impromptu* discussion with the ever excellent @RealSimpleAriel on my recent systematic algorithm backtesting and using Claude to perform the analysis.
Below is a link for anyone interested:
https://t.co/VCQiZa7SuM
Thanks to @RealSimpleAriel & @NickDrendel for running the BEST swing trading stream every market day. There is no better place to learn to trade than here (link below).
https://t.co/1UOK2zaN9M
Special shout out to Stephen for kindly recording the chat - please give him a like, subscribe and comment for all his efforts. 🤝💙
PS. Apologies if I sound sleepy or unprepared (it was 2am and I was heading off to bed 😴)
@alphacharts365 Daily reports for summarized information has cut down prep time and made it more accurate. Then personal dashboards to implement trade management software and custom indicators or different sectors and groups for monitoring
@SteveDJacobs Love this post, this would be very beneficial for my trading in this current environment, Im staying to concentrated when there are so many failed moves. Appreciate you being open with your views even if its "not the most popular" Going to try and implement to my system better!
📈The Case Against Cherry Picking Your Own Watchlist 👀
When posting a stock watchlist, sometimes the list can include quite a few names (such as the 40 tickers shown). Once you have applied all your selection criteria — dollar volume, market cap, moving averages, relative strength, ATR% and whatever else forms the backbone of your edge — the remaining names are those that have cleared every filter you believe generates alpha. That list, in its entirety, is your opportunity set.
Narrowing it down further through intuition or gut feel is, by definition, cherry picking. And here's the uncomfortable truth about cherry picking: if the logic you're using to eliminate names had genuine merit, it would already be baked into your scan. If "it looks cleaner" or "this one just feels stronger" were reliable signals, they'd be codified criteria.
The fact that they aren't means you're introducing unquantified, untested bias into a process you've otherwise worked hard to make objective.
There is also a subtler trap: survivorship bias in our own conviction. We remember the gut calls that worked, forget the ones that didn't, and almost never track the names we passed on that ran without us. Cherry picking feels like skill. Honest tracking rarely confirms it.
A more systematic — and arguably more profitable — approach is to take small pilot positions across the full eligible list rather than concentrating on your subjective favorites. Let the market tell you which names deserve more capital, rather than deciding in advance. From there, the process becomes straightforward: trim or cut the names that go nowhere or move against you, and scale meaningfully into the ones that begin to work. Your winners self-select. Position sizing becomes a function of price action and momentum rather than pre-trade opinion.
This is where the real edge lives — not in the selection, but in the scaling. The best traders are not necessarily the best stock pickers; they are the best sizers. Identifying when a pilot deserves to become a full position, driven purely by what the tape is telling you rather than what you believed before the trade, is the skill that separates consistent performers from those who get lucky occasionally. The scan finds the candidates. Price action promotes them.
The asymmetry of this approach also deserves attention. A pilot position in a name that fails costs you very little if you are disciplined about cutting losses — the downside on any single name is capped by the small initial size. But the upside on the names that begin to work is uncapped as you scale in. You are structuring your book so that your worst case across any individual position is small and defined, while your best case — the name that breaks out and runs — gets fed aggressively. Cherry picking inverts this asymmetry. By concentrating in fewer names based on pre-trade conviction, you increase your exposure to being wrong while simultaneously reducing the probability that you are holding the names that actually move.
When you cherry pick and your chosen names underperform while the ones you skipped run, the regret and second-guessing can erode your confidence. Taking pilots across the board largely eliminates that problem — you will have a foot in the door on whatever works, and your job simply becomes managing the book as information arrives rather than defending decisions made before the market had a chance to weigh in.
The scan did the hard work. Trust it, and see if the names that made the watchlist continue higher during the next market session then size small across the output, and let the tape do the rest of the filtering for you... or apply the concept of "levers and switches" :
https://t.co/3sMzXy0hQD
$SIG $AEM $CGON $CW $CRS $JBL $CROX $AGI $COHR $FN $PRAX $TSM $LRCX $KLAC $SCCO $FCX $WPM $AU $EL $EQT $TECK $PAAS $GFS $CHRW $CX $SN $CDE $AA $LSCC $TTMI $OR $VSAT $LGN $CAKE $CALY $OSW $SEDG $WERN $MU $SSRM
During SMB monthly reviews many traders expressed disappointment that they did not perform better in the Silver and Gold opportunities. They made money but they lamented they should have made more. Perhaps many of you feel the same.
What I am going to say next I hope changes how you look at last month's trading experience.
The PnL you "missed" in Gold and Silver doesn't matter.
What really matters is that you gained 6 career-altering experiences:
1) Commodity Mastery: You moved beyond equities.
2) Deep Analysis: You performed extensive reviews of "A+" setups.
3) Collaboration: You leaned on your trading teammates to navigate the historic opportunity.
4) PlayBook Expansion: Now you have added commodities to your quiver.
5) Risk Control: You survived and managed a historically volatile move.
6) Tech Growth: You built the tools to capture more next time.
The profit wasn't the point. The experience was.
You are now a better trader!
From my seat, for those who keep learning, pushing, and gain experience that ten thousand you left on the table will become 100k one day. That 100k you left on the table will become 1m. That 1m you just missed capturing will become 10m.
The market will pay you for the trader you become.
It is not how good you were last month. It is how good you will be.
The lessons compound. There is always a next big opportunity. The real reward is just getting better.
Train and trade well.
Bella
#TradingPsychology #Gold #Silver #SMBTraining #DayTrading #PropTrading
As tens of thousands across America protest the violence that ICE sows with impunity, federal agents shot and killed another person in Minneapolis today. ICE terrorizes our cities. ICE puts us all in danger. Abolish ICE.
Can’t wait for the most braindead fucking influencers on the planet to come out and run defense for a federal organization actively slaughtering American citizens in the streets. Super based!
@traderlion Love deepvue &the book, thanks for the amazing resource!! One question, is there a way to make it so you can see every stock listed in a certain industry or group? It tells you the number of stocks but I can not click that number to see all the stocks included.
@RealSimpleAriel Really appreciate your morning live streams! You always mention that you look at if the stock is above or below the 200sma and 50 sma for overall feel of trend. Which time frame are you looking at those SMA's on? The 1 year?