Karan Doshi

[Karan Doshi @karanmdoshi]

@aaditsh AI

[Karan Doshi @karanmdoshi]

@iramyram Scanner

[AsymTrading @AsymTrading]

There are multiple paths to positive expectancy.

Avg gain * win % - avg loss * loss %

Large profit factor, low accuracy: ($5 * .3) - ($1 * .7) = $.80

High accuracy, low profit factor: ($1.5 *. 7) - ($1 * .3) = $.75

Mid accuracy, mid profit factor: ($2.5 * .5) - ($1 * .5) = $.75

While these are just hypothetical examples, it's important to understand the trade-offs.

Low accuracy system stop out A LOT. In many cases, the profit factor is so skewed because these systems tend to employ very tight stops, so the avg loss is very small, but maybe 10-20% of the runners account for most of the profit. Think Qullamaggie or Zanger with very aggressive stops, looking for those 5, 10, and 20:1 trades. Or the long-term trend traders that try to ride large, multi-month/year trends.

Low profit factor systems, where the average gain vs avg loss isn't much different, make money through high turnover and locking in gains relatively quickly. I've even seen systems where the avg loss was bigger than the average gain, but the accuracy was very high, so overall it was profitable. Scalpers and short-term day traders tend to fall into this category.

Mid-profit factor systems tend to be a balance of both. Think of Minervini's characterization of a 2:1 50% trader. These systems focus a little more on timing, taking partial profits, and tend to use slightly looser stops, which helps keep the BA higher. Swing traders tend to fall in this category.

Personally, I've had a lot of trouble with low batting average methods. It fucks with my head and I start to sabotage my trading. To combat this, I've often employed wider stops and smaller positions, which reduces my stopouts and increases my batting average to stay in more trades.

This dynamic is literally the reason I even started the experimental account - to do the work to handle tighter stops and lower BAs. I'm trying to get comfortable in that space. Guys like Zanger and Qullamaggie swear by tight stops (in the right backdrop of course). So my goal was to work on my psychological hangups with the approach.

There are multiple routes to positive expectancy and there's more than one way to skin a cat. Don't let anyone tell you that you "have" to trade with super tight stops. They are professing their ignorance of basic expectancy math. My trading improved dramatically when I stopped trying to squeeze my stops as tight as possible.

Take it from Dave Landry: "If you are constantly getting stopped out right before markets make a big move, then your stops are probably too tight. I have worked with many traders who have done just this. All that stood between them and becoming profitable was to loosen their stops a bit. This can be counter intuitive for many, especially since tight stops seem to be universally preached."

Maybe it's less than "optimal", but who cares, to be honest. What's the point of optimal if you can't stick with it? Better to make progress doing something less than optimal than to force something inconsistently and haphazardly just for the sake of optimal.

[AsymTrading @AsymTrading]

Eight-Step Momentum Trading Method:

1. Scan the weekly charts of the top 10% 1, 3, and 6-month relative strength stocks within 25% of recent highs - 30-day highs, 60-day highs, 52-week highs. It doesn't matter - pick one. The point is that the stock has retained recent momentum. Don't obsess about it. You want stocks with trend, momentum, volatility, liquidity, and relative strength.

Examples:

Trend - xavgc10>xavgc20 and xavgc20>xavgc50 Momentum - c/c60 > 1.30
Relative strength - c/c60 ranks top 10%
Retaining RS - c>maxh60*.75 Volatility (ADR %) - avg((h-l)/c, 20)*100 > 4
Liquidity - avgv20>300000 and avgv20*c>5000000

This is just an example but offers a simple, scannable way to narrow your universe of stocks down to things with technical potential. If you want to add fundamental criteria to that, be my guest.

2. Flag all the ones with 1-3+ weeks consolidations and are pulled back near their 20-day EMA. If you need help to understand what solid setups look like, then compare those stocks to the model setups in the attached images. There may be none that match. That's ok. It may take another week or four. You'll track these stocks until they look like the picture - or shit the bed and break through the MAs. These are setups, not buys. They only become buys once they break through the pivot on solid price/volume action.

3) Whittle the flagged items down to those with an orderly, constructive consolidation where the volatility is contracting for 3-5 days, the stock is building higher lows, and getting tight. Could be two days, could be 6 or 7; 3-5 days is just a general rule of thumb to help you avoid chasing things that haven't consolidated long enough. It's like a contraction/consolidation/tightening within a bigger picture base or pullback. If using the image, ideally you want points 2 and 3 getting closer together with each up mini-rally and selloff.

4) Identify the pivot or breakout point where the stock would have to breakout of to trigger you into the trade. Typically, this will be highest points of the 3-5 day tight range you identified in the last setup. Using the model image, the pivot point is point 2.

5) Track these stocks until they look like the picture - or shit the bed and break through the MAs. These are setups, not buys. The plurality and presence of these setups is almost as important as the setup itself. If there are scant setups, that's often a bad omen. It means the mkt has already meaningfully taken off and you missed the boat or the mkt is in a poor backdrop and the odds are low for breakouts. Breakouts and momentum tends to happen in clusters.

6) At a minimum, make sure that the group/sector you're trading is in an uptrend - 10 over 20EMA and both trending up on the group chart. Preferably, you also want the major indices to be in an uptrend. $QQQ for tech and $SPY for consumer/stuff stocks. If these are in downtrends, the odds of anything you do working is much much lower. Your batting average will be pitiful, and most of your stocks won't follow through.

Only move to step 7 and 8 if step 6 is met.

7) Buy stocks breaking out through the previously identified pivots with an expansion of price and volume on a stock-by-stock basis. Don't predict which ones will breakout. Many never will. Don't go crazy and buy 10 stocks in a day, even if they are all breaking out. If there are 10 breaking out, go with the highest ADR, strongest group, strongest volume, best setup. I know, subjective af, but trust me, don't try to buy everything on one day. There will be more setups.

8) Sell 1/3 to 1/2 of your position after 3-5 days or once up 2R or even use a close below the 20EMA on the hourly. Trail the rest with the 10 or 20 EMA, depending on your preferences and ability to hold. The main exception is a climax run-up that stretches the stock far above the MAs. In this case, use the 5 EMA, bar-by-bar lows, or switch to the 20EMA on the hourly.

[Mark Minervini @markminervini]

Every time you make an excuse and blame outside forces for your problems and failures, you resign yourself to helplessness.
The market isn't rigged. There isn't a conspiracy against the "little guy." And yes, you can beat the market and surpass even your own dreams. But first, you must take 100% ownership of your results. You must acknowledge your role in the situation you are experiencing. Then, you can at least acknowledge that you have control. You must admit that... right now... I SUCK! Until you admit you suck, you will just keep looking for reasons and people to blame, and you will never improve to a high level because you have already relinquished and given up your personal power.... choice. It's ok to suck. I sucked at trading for almost 6 consecutive years. But I didn't give up my personal power by blaming. I took responsibility and worked on my weaknesses until they became strengths. You can, too. It all starts with living a life of no excuses.

[Sahil Khetpal @skhetpal]

Billionaire investor Dan Loeb believes studying this one company is worth more than a 2-year MBA.

Surprisingly, it isn’t Amazon, Apple, or Berkshire Hathaway.

As one of the all-time best-performing stocks, it’s delivered 4,500%+ returns over the last 25 years.

Let’s dive in!

[Aaraynsh @aaraynsh]

Low-key manifesting a girl who brings flowers on a date, sings a song to cheer up, writes a letter when we are apart, takes me on a drive, expresses her feelings, sorts out issues and differences, and loves me unconditionally for the real me.

Is this enough to ask for? :')

[Mark Minervini @markminervini]

14 things that will help you become successful that require zero talent:
Being honest
Being kind
Being on time
Being prepared
Being open-minded and coachable
Doing extra
Reading and learning
Being a good listener
Having a positive attitude
Commitment
Passion
Being grateful 🙏
Having humility

[Mark Minervini @markminervini]

The world is littered with talented people who don't commit, don't persist, and don't believe in themselves. Talent means nothing without discipline, willingness and self-confidence. That confidence comes from knowing you put in the work and knowing that you are willing to do what it takes, and that makes you feel deserving. Which is the most important mindset necessary for lasting success.

[Wilson Wilson @euboid]

This is insane??!!!

It took 3 minutes to build this fully responsive site using a paragraph-long prompt in @framer.

This is the first integration of AI in a product I've seen that doesn't feel like a gimmick.

[Mark Minervini @markminervini]

5 Principles to Build Your Trading Career On
1. Get off the money, get off results and concentrate purely on perfecting process.
2. Commit to just one style. Commit to just one mentor; someone who has already achieved what you are aiming to accomplish.
3. Don’t judge too soon. Turn off the clock. Commit to unconditional persistence. Give yourself time to succeed.
4. Embrace all results as valuable teachers – get curious about your losses or mistakes and look for lessons.
5. Make your trading a priority that you focus on EVERY DAY!

[Grant Miller @AIGuide_]

8 Tricks to be confident wherever you are:

1.

[Photography 📸 Tips & Trick @CameraTrickTips]

Cool Stairs Photo Idea 💡📲

[Jas Singh @TheJasSingh]

Custom GPT-4 chatbots are the NEW kid on the block.

Here’s how you can have your own with zero coding in two minutes…

Introducing Dante: the AI chatbot that anyone can build in 5 minutes:

[Barsee 🐶 @heyBarsee]

This week is another big leap forward in AI.

New "Godly" photo manipulation
ChatGPT rival released for free
AI can understand animal
Wearable AI to see world
Adobe text-to-3d Image
ChatGPT driven NPCs
ChatGPT Portfolio
Sam Altman villain

Everything you need to know: 🧵

[Sharyph @sharyph_]

17 year old kids are making $100,000/month with AI tools.

This is the trend and the future is bright with these tools.

Here are 7 free AI tools to start making money online.
(No certificates required, No course to complete). 👇

[Dr. Nicole LePera @Theholisticpsyc]

You Can Tell A Lot About A Person By:
1. How they treat someone who can't give them anything in return
2. How they react when disappointed
3. How they speak about ex partners
4. How they speak about themselves
5. How they react when unexpected things happen
6. What they do when they feel wronged by someone
7. How they react when you go to them for support
8. How they speak to people in conflict

The most powerful communication is behavior.

[Hasan Toor @hasantoxr]

ChatGPT is everywhere, and everyone is using it.

But AutoGPT will be the next big thing in AI.

Here's everything you need to know about AutoGPT:

[Ashwin Porwal @ashwinp3]

HOW TO BECOME RICH BY @markminervini
Awesome writing ✍️ 👌