MachineLisa

Dev 💻 & Trade 📈

[Mark Minervini @markminervini]

The rules I built a 41-year career and a personal fortune on.
1. always use a stop loss
2. define your stop before you enter a trade
3. never risk more than you expect to gain
4. nail down decent profits
5. never let a good size gain turn into a loss
6. never average down
7. never get bold when running cold
8. Have a system that trades the largest when you're trading your best and the smallest when you are trading your worst.
9. As a trade progresses and improves, so does your worst-case scenario
10. Avoid style drift
https://t.co/JXzFFTmMtn

[MachineLisa @cosmic936]

@PradeepBonde EG good going!! 💪🔥

[Dan Cheung @wannabechamp]

Successful traders are not afraid of losing.

They are afriad of losing their discipline.

[Theo Gustincic (Sila) @TheoGustincic]

It's been a while since I've seen such an obsession with being fully invested at all costs. There's nothing wrong with holding cash during periods of uncertainty or when the market doesn’t confirm your thesis. Patience is key, wait for the right environment to buy aggressively. Cash is a position in itself and serves as the cornerstone of all profitable traders. Don’t chase setups; let them come to you.

[Nick Schmidt @NickSchmidt]

For the first few years I was trading I felt like I had to prove I was smart and i had to justify every trade with some deep insight.

I would argue with the market and double down on losers just to prove I wasn’t wrong. i’d hold past my stop because I believed it would come back. I was fighting the market everyday if it didn’t fit my narrative.

I was making things harder than they needed to be and trying to make sense of everything instead of just watching literally what’s right in front of me.

I basically had to get out of my own head and stop myself from creating narratives of how things should play out… or at least strict ones.

I can have a loosely held narrative that changes based on what i’m seeing in front of me on the chart but I’m not attached to it anymore at all. My motivation now is strictly progress.

All of my best trades didn’t require hard thinking. The ones where I’ve put a ton of thought and energy into and got attached to it playing out have all been my worst.

Think less and listen more.

[kyce @kycefn]

An update on small cap market cycles: (long post)

By my objective measures (gap/runners/liquidity/multiday stats), the market is actually on the hotter side compared to 22', 23', and early/mid 24'.

However, the small cap market has become extremely competitive. Short sellers are experiencing repeated outlier (not so outlier anymore) moves that their back tests can not prepare them for, and long traders are either missing moves completely or fighting each other for the same exact fills all day long.

If you have been a member of small cap markets for the last 3-5 years, my guess is you have felt this shift in price action in the last 6-12 months. It has become especially noticeable in the last 4-5 months.

I do not believe this is just another cycle. I believe we are witnessing the beginnings of a permanent change to small cap markets that was simply not possible before 0 commission trading. (circa 2020)

Let me explain:

It has been 2-3 years since the emergence of the first public hyper scalpers (500-1000 trades/day).

Since then, the hyper scalping niche has grown exponentially due to the amount of educational rooms and live streamers literally giving away the strategy completely free.

Relentless, Warrior, Farmer, Moon. These are just a few of the educators with hundreds+ of people each chasing their trades in real time every minute of the day. You can find their videos all over YouTube, their meetups on TikTok, and their pnl posts are the perfect marketing tool for a young generation who has given up on the 9-5 and is hungry for internet wealth.

Add in the low barrier to entry (0 commission brokers), stable equity curves, and lack of blowup potential has made hyper scalping the obvious choice of strategy for any new trader.

As a result, there are now literally 1000's of traders tuning in to live streams and discord rooms trading the same handful of gappers every single day.

I recently introduced a friend to trading who had absolutely 0 experience in the stock market. I gave him a technical analysis book to read and some general advice and left him on his own.

2 weeks later, he texts me that he has been watching "Ross Cameron Youtube videos", and he shows me that he is already placing trades in some of the exact spots that took me years of studying to find. It took him only 2 weeks with no direction to get funneled right into hyper scalping.

Obviously he is very small size right now, but this is the exact process that has been occurring for 3 years now. And the other traders' 6-12+ months ahead of him are already influencing price action.

Fact: When a few people all buy/sell the same exact spot, price is going to respond. When 100's or 1000's are doing it, you are changing markets in real time. Here is how it is changing price action...

You can think of hyper scalpers like "exaggerators" of market movements. On the frontside, they are pushing these stocks higher and longer with less reasonable dips. On the backside, they are getting liquidated in rug candles and halt downs with less reasonable bounces. In the consolidations, they are constantly buying and selling on top of each other leading to some soaks and stuffs.

Those crazy all day halt names you see. There are 100's of hyper scalpers buying those unhalt washes and selling the halt bands and rinse repeating the whole way up. Then on the way down, they are getting crushed buying dips.

Big players still need to initiate moves, but hyper scalpers are like fuel to the fire, in both directions. And the amount of fuel entering small cap markets has been steadily growing for 2 years now.

Small cap cycles used to operate on a couple month basis. Hot, neutral, cold, neutral, hot, and so on. But now a single day of activity can ignite a frenzy of fomo buying and a couple poorly timed offerings can kill the cycle overnight.

The hyper scalpers are here to stay, and they are undeniably bringing MORE edge to the markets on both sides. A lot more edge. I personally believe hyper scalpers are a huge net POSITIVE to small cap markets.

Change does not automatically equal bad. And that is a common flaw in human nature. We instinctively are anti-change. Meanwhile, the ones who accept change and adapt the fastest remain the most competitive.

If you learn to adapt to wider ranges, quicker cycles, and more volatility, the opportunity for a small cap trader is now easily into the high 7 figure and low 8 figure range.

The action will only continue to get more competitive as time passes, so the takeaway from this post is that you must always be observing and adapting your trading.

How many top traders of 2020-2021 markets have we seen stagnate?

The current change in small cap markets is on a lesser scale than covid markets and is far more gradual, but it is still extremely noticeable and requires adaptation.

End.

Thanks for reading please drop a comment if you wanted to agree/disagree with something or just add your point of view for discussion.

Follow me on ig 'kycefn' for my personal life.

Cheers.

[THE SHORT BEAR @TheShortBear]

Getting caught up in intraday action is one of the biggest threats to successful investing.

It’s easy to get shaken by a morning flush or an afternoon reclaim, reacting to every short-term move instead of staying focused on the bigger picture.

Large-cap stocks, in particular, excel at establishing a range and hunting stops. You might be positioned correctly within the broader trend but still end up losing because intraday price action is designed to search for liquidity and shake out traders.

The more valuable the trade idea, the more important it becomes to zoom out and let the setup play out. Maximizing a trade often requires ignoring the noise and staying patient.

The same principle applies to small-cap intraday trading. More often than not, the daily candle aligns with your initial thesis, but the intraday action does everything possible to keep you from holding the trade.

When emotions run high, step back. Plan your trade premarket or after hours, and most importantly, trust that plan.

Trying to be too precise often ends up costing you in adaptability which is paramount as volatility tricks you into submitting. This is why moving averages and alike can help as tools, as they smooth out the emotions into capital flow trends.

[Mark Minervini @markminervini]

When the best setups don't work, you don't go to the worst setups... you go to cash.

[MachineLisa @cosmic936]

@KhanujaNirvair @markminervini 💯🙏🏻

[MachineLisa @cosmic936]

@AutismCapital @KhanujaNirvair

[Deniz The Trader @DenizTheTrader]

Trading Progress:

Year 1: ❌❌❌❌✅❌❌❌✅❌❌❌
Year 2: ❌✅❌❌✅❌❌❌✅❌✅❌
Year 3: ❌❌✅✅❌❌✅❌❌❌✅✅
Year 4: ✅❌✅❌✅✅❌✅❌✅❌✅
Year 5: ✅✅✅❌✅✅✅❌✅❌✅✅

Every failure teaches a lesson.
Progress takes time,
don’t quit early. 📈

[MachineLisa @cosmic936]

@Scot1andT @TRENDandMS @KhanujaNirvair

[MachineLisa @cosmic936]

@dayendtrader Long game is more important 💯

[Day End Trader @dayendtrader]

Does a fast bowler bowl spin on the day the pitch is favoring spin?

Think about it for a min…

No. A fast bowler can’t do that. He can’t change his fundamental style, his specialty, his core operating system, based on the pitch of a single match.

An amateur will say, ‘You’re a professional bowler right? So why can’t you bowl spin today? Maybe you don’t have the right skills then.’ By that measure Bhumrah isn’t a good bowler at all. (Damn, even saying it as a joke hurts 😅)

You see how ridiculous it sounds?

But wait a min. There IS something the pacer can do. He can be cognizant of the fact that the pitch favors spin. He can decide to focus on the basics, line and length. No experiments, no arrogance, no taking unnecessary risks. Just bowl the best that he can and survive the day without destroying his career bowling figures (the long game).

So to answer your question: No. I operate in a similar way. I can only work with what I have. I can’t change something fundamental. I can trim faster and add slower. But I can’t become an intraday trader. The market conditions can bend my style but they can’t change it.

So you see…I can bowl a little faster or slower, but I can’t bowl spin. Maybe it’s a skill issue 😉

[Marios Stamatoudis @stamatoudism]

''The Traders' Paradox''
I love this philosophical point because I see it inevitably growing in me through years of progression, and I'll tell you how I try to minimize it.

As you become more educated about finance and the economy, your brain inevitably starts forming a Macro View of things. Name it a company's future prospects, name it global phenomena, name it monetary policy. etc.
The problem is that if you submit to these Macro viewpoints, even if they are well-informed, the trader in you gets completely paralyzed. The more educated you become, the more holes you see, the more defaults, the more hidden risks in things.

Imagine trading in 2005 and discovering the hole in Mortgage Backed Securities. How on earth could you trade the 2005, 2006, or early 2007 market with a bullish mindset? There’s not a slight chance.
The same goes for smaller phenomena. There are companies out there you know are pure Ponzi schemes, dumb, with no management, worth nothing. If you submit to the Macro point of view, there is no way to engage with them. You get paralyzed, only for you to see these things go up 200%, 500% , 1000%.

That is why you must be sure of what you do and why you do it. You have to remind yourself that making money is more important than being right....because being right carries the burden of a lag effect, and time lost is money lost.

There is a reason many of us pick Momentum Trading as our vehicle to generate wealth. For me, it wasn’t simply because others were doing it, but because there is a hidden essence in it.

You don’t need to see how the world will look in 10 years, form educated guesses, and wait to profit from them. You let the world showcase Macro Views as estimated probabilities projected onto the NOW and profit from them. Through Momentum, you eliminate all the Macro guessing by passing that work to others until you are alerted. By trading Momentum, you take an oath to simplicity.

Every time I go deep down the rabbit hole of Macro analysis, I remind myself why I do what I do.
I remind myself that the tape made me money—even in irrational markets or assets, not my Macro view of things.
I remind myself that I am wasting energy that could be spent on refining market structure and dynamics to profit more.
I remind myself that making money in persistent irrationality is far better than simply being right in the lagged recalibration of a rational view of things.

That’s when I withdraw and focus right back on the tape.

[Deniz The Trader @DenizTheTrader]

Missing a trade is FREE.
A bad trade is EXPENSIVE.

[Connor Bates @ConnorJBates_]

@Qullamaggie Quotes on Market Awareness

"Big money is made in a good few month swing trading environment. Patience is the name of the game."

“A good setup should be obvious. You are looking at it and you are like WOW, that is an INSANE setup”

“Trading shouldn’t be hard. You shouldn’t be sitting there and working your ass off making trades all the time. You should only trade a certain setup when the conditions are good for that setup”

[MachineLisa @cosmic936]

@LindaRaschke @KhanujaNirvair

[Monis @mmonis]

Trim is essential to survive in this game

[MachineLisa @cosmic936]

@mmonis Same 😄