Silver Fox

How to Build A Winning Trading Strategy (free ebook)
Answer these 5 questions correctly and instantly think and trade like the top 10%.

[Silver Fox @TPayne]

@ohiain When you sell your options at the low of the day, are you referring to the LoD on the stock price or the LoD in the option price?

In other words, do you use a stop on the option price, or do you use a market conditional order to sell option at market after the stock crosses “x”

[Silver Fox @TPayne]

If you think your last winner “made your money back”…

You’re still trading like you’re broke.

Winners don’t just recover.

They reload.

That trade just funded your next 5 shots.

[Silver Fox @TPayne]

@1ChartMaster Either sell some into strength, or sell all of it into weakness.

Take partial profits now and then reload after consolidation.

[Silver Fox @TPayne]

“My biggest losses have come after my biggest winners because I started to think I knew something.”

-Almost every trader on the planet

[Silver Fox @TPayne]

Trading isn't just about monster winning trades.

It's about the hundreds of losing ones in between.

Why?

Losing trades are usually the reason people quit.

The monster winners are just a carrot on a stick: Everybody wants it.

Are you willing to walk through hell to get it?

[Silver Fox @TPayne]

You have come a long way when you stop trying to find the perfect buy point and instead start focusing on:

Self growth, psychology, and discipline.

As Richard Dennis said:

“You could publish my system in the Wall Street Journal but nobody would have the sense to follow it.”

[Silver Fox @TPayne]

Think of your favorite and most successful trader:

Are they superhuman?

Do they constantly get lucky?

Do they have inside information?

Do they always win and never lose?

They are human just like you.

You have the ability to do it.
You just need to discover it.

[Silver Fox @TPayne]

Here is a mental trick:

Most traders view a big winner as “paying back the last 5 losers.”

That’s boring.

It sounds like paying back debts.

Instead, think it as “paying for 5 free trades.”

Same thing, different mindset.

[Silver Fox @TPayne]

Fools look for excuses.

Wise men look for where they went wrong.

[Silver Fox @TPayne]

Learning to trade is like putting together a 10,000 piece puzzle:

And after countless hours of trying to put it all together...

The final picture simply reads:

“MANAGE RISK”

[Silver Fox @TPayne]

@1ChartMaster Jesse Livermore: “I don’t know how you can make money in the market. I only know how I can make money in the market.”

[Silver Fox @TPayne]

Stock market shakeouts are like shaking a tree to dislodge the fruit;

The weak ones drop very easy on the first shake.

The stronger ones require a few good shakes to break them loose.

This is why bases have multiple shakeouts within their structure.

[Silver Fox @TPayne]

Most traders limit themselves to technical and fundamental analysis...

But the most important part of trading is mental analysis.

You must understand how your emotions and beliefs affect your thought process and behavior.

A winning mindset is your edge.

Champions know this.

[Silver Fox @TPayne]

The market is extremely patient;

It will continuously teach you the same lessons over and over and over as many times as it takes for you to finally learn the lessons that it is trying to teach you.

[Silver Fox @TPayne]

Once you learn how to buy strong leaders during temporary weakness…

You start enjoying market pullbacks instead of fearing them.

[Silver Fox @TPayne]

Many traders read all the books and knew what they were supposed to do...

But still failed due to a mindset that prevented them from doing what they knew they should.

When they became successful, the markets didnt change.

The tools they used didnt change.

The TRADER changed.

[Silver Fox @TPayne]

If you flip a coin, do you expect that you will be right?

Probably not, because you know its 50/50.

You dont feel “dumb” if you are wrong.

When trading stocks, most traders expect certain results for their trades, and therefore are emotionally vulnerable to the outcome.

[Silver Fox @TPayne]

You are watching TV because you are looking for hot stock tips and they recommend BUYING $AAPL stock.

You are reading internet articles for the same reason and they recommend SELLING $AAPL stock.

Who is right?

Nobody knows what will happen next.

NOBODY.

[Silver Fox @TPayne]

You’re not “getting your money back.”

That’s the wrong story.

A winning trade is you buying
5 future shots… for free.

Instead of thinking recovery, try thinking opportunity.

[Silver Fox @TPayne]

If a rookie trader makes money from a hot stock tip, he is thankful but learns nothing.

If a rookie trader loses money from his own decisions, he may be unthankful but learns something.

Finding hot stock tips online is not a strategy for success.