Trade Management by @finallynitin
While trading
Flag (Swing): All-in All-out/All-in Scale-out. Urgent move no time to build positions.
Big Base (Positional): Scale-in All-out. A lot of opportunities for various kinds of entries.
Base (Swing/Positional): Can handle it both ways.
Law of Action vs Reaction in Trading
This law suggests that the true strength of any action is revealed through the reaction it creates. The important point to remember is that a reaction should always be viewed in the context of its action. If you lose that frame of reference, the interpretation can change completely.
A good example is the Indian Women’s Cricket Team’s reaction after their World Cup win. The joy and emotion they showed told us how much that victory meant. The reaction reflected the depth of the achievement.
The same idea applies to trading. A shakeout becomes meaningful only when it is followed by a decisive response from buyers. When the price pushes past key breakout points with energy and urgency, it confirms that genuine demand has returned. But before such clear signs appear, a shakeout can easily turn into a trap.
Every shakeout contains both action and reaction. The action is the price decline that challenges the bulls. The reaction shows whether the bulls are ready to step up and fight for control.
Just like how a person’s true strength is revealed when tested under pressure, the conviction of bulls is revealed in how they respond. A strong and confident reaction can turn the tide and remind the market of the bulls’ power. A weak or hesitant response shows lack of belief and gives bears the confidence to push prices lower.
In the end, a shakeout without a strong reaction from buyers is incomplete. The stock can continue to drift down, often with less volatility, until real demand appears and the bulls take charge again.
1. Build a process and keep refining it with feedback. Improvement is a loop, not a one-time effort.
2. Don’t chase outliers, and don’t modify your process based on exceptional trades. Missing them is not a failure.
3. Novices seek perfection. Professionals seek consistency. Getting things done is more important than getting them done perfectly.
4. Have a dream big enough to change your life and a fire strong enough to make you show up every day. It’s easy to slip into inactivity.
Without a purpose that inspires you, consistency is impossible.
5. Cut the noise. Let your vision guide your path. Don’t run after every new buzzword someone introduces.
6. Believe in yourself. Every market wizard was once just a normal person. Get inspired by others, but also believe that you, too, can inspire someone someday.
7. A man without ambition is lifeless. And a man without self-leadership may become a good follower, but never a leader.
#Gabriel
Long from 1031. On Thursday, I survived this trade because I wasn’t active during the first 5–7 minutes. This reminded me that sometimes it’s better to wait and observe rather than react immediately.
Profitable traders sound boring because they’re patient and they keep it simple.
Unprofitable traders sound exciting because they complicate everything and are always extremely bearish or bullish.
One makes money, and one doesn’t.
The market doesn’t care about your opinion. Successful traders focus on making money, not being right. Every time you need to be “correct,” you set yourself up for emotional disaster.
Think in terms of performance over a series of trades.
@Anuragg_CA@finallynitin Wow, you have done this so quickly.
Congratulations Sir!
Although I’ve compiled your work as well, I’ll still buy this one too.
While reading charts, focus on three things:
a) Continuity of liquidity flow
b) Growth in liquidity flow
c) Risk to liquidity flow
Many factors can drive liquidity, but only liquidity drives price. The entire art and science of technical analysis / chart reading have one purpose: to show you the probabilities of these three situations.
-In a young trend, keep buying & building positions, and be prepared to lose that amount.
-Add on every buying opportunity, but when the trend gets old, you can go all-in all-out for a climactic move.
-Hold your positions, move your SL to breakeven, & let the market stop you out.
The most important strategy begins with your mind. Your mind will dictate your success. The more focused you are on your targets, the more successful and profitable you will become.
- @LarryConnors1#TradingTip