In 2008, Malcolm Gladwell explained why some people succeed and some don't in a single 1-hour talk.
This will permanently change the way you think about talent, effort, and success.
Bookmark & watch today, no matter what.
Now, Class, repeat after me. I will never buy cyclicals at low PEs and record earnings. Say it again. I will never buy cyclicals at low PEs and record earnings.
Most traders screen for cheap stocks.
I screen for strength.
Every one of my biggest winners came from this single screener. It's the only scan I run every day and every weekend.
Here it is (free):
https://t.co/FfuBt33xQb
Here's exactly what it looks for 👇
1) 70%+ above the 52-week low
• I don't want stocks trying to recover.
• I want stocks already proving they can trend higher.
2) ADR ≥ 4.5%
Big winners need room to move. Low-volatility stocks rarely become home runs.
3) Above the EMA 8 & EMA 21
I want stocks already under institutional accumulation with strong momentum.
That's it!
Simple doesn't mean easy.
This screener is NOT a buy list. It's a research list.
Every stock still has to pass my manual analysis:
• Strong fundamentals (EPS +50% YoY or sales +20% YoY)
• A compelling growth story
• Clean price action
• A proper base
• Tight risk
• Industry leadership
Only a handful make it onto my watchlist and that's where the real work begins.
Most traders spend their time searching thousands of random stocks. I spend my time studying the strongest stocks in the market.
That one shift changed my trading.
If you consistently focus on strength instead of weakness, you'll start looking where the biggest winners are actually born.
If you find the screener useful, please Like ❤️ and Repost 🔄 so more traders can benefit from it.
You can always tell an amateur who lacks long term market experience by four simple words. They say "it's different this time." No, it's not!
Other than technology speeding things up and making market access more readily available, virtually nothing has changed other than the names.
The Big Short taught a generation the wrong lesson: it microwaved them into romanticizing trying to monetize the red circles, when the real wealth came from surviving them and riding the green.
This is Michael Burry’s fault
My cautionary posts about SpaceX/Semiconductors seem to have struck a nerve.
Receiving many enraged/offensive e-mails.
Last time I saw this was in 2021 when I was warning about the meme stock/SPAC/ARKK manias.
History doesn't repeat itself, but it often rhymes.
@michaeljburry Mike, you’re an UBER smart guy. I don’t understand why you insist on standing in front of freight trains, because you believe you have strong legs.
One should not to try to call tops in manias using reason, intellect and skill.
Because manias and crowds are … irrational.
It is kinda funny when people are trying to apply all kinda comparisons and logic to mock $spcx, when $spcx is moving AH and breaking $200.
When a market is sentiment and speculation driven no logic works.
before Nassim Taleb made his fortune shorting the 2008 collapse, an old veteran on the trading floor gave him a terrifying warning
"he grabbed me, pointed to a guy across the room and said: 'you see ed over there? he made $7 million in 7 years... and he just lost it all in exactly 7 seconds'"
that was the exact moment Taleb realized that 99% of wall street was playing a rigged game of russian roulette
"average funds hide their risk to look smart - they make small, steady profits every single day, completely blind to the fact that one rare event will eventually wipe out their entire existence"
"we do the exact opposite - we take tiny, calculated losses every day, and position our entire portfolio to make billions the second the system completely breaks"
Taleb didn't build his empire by trying to predict the market. he built it by assuming everyone else is fragile, and waiting for the inevitable hurricane to destroy them
watch his legendary stanford masterclass where he breaks down this exact realization
“Cut your losers, let your winners run.”
Quoted everywhere. Executed wrong almost everywhere.
The error is defining losers by price.
A loser is not a position that’s down. A loser is a position that fails one question:
Would I buy this today, at this price, with fresh capital?
Down but thesis intact → it stays. A drawdown alone doesn’t make something a loser.
Green but thesis stale → it goes. Dead money is a loser wearing a flat chart.
The mirror rule for winners: weight earned by appreciation is earned. The market promoting a position up your book is confirmation, not a sell order.
Price tells you what happened. Thesis tells you what to do.
Most investors don’t underperform on picks. They underperform on this question.
Top 10 things that made me $200K last year:
1. Sold puts every single red day
2. Closed every trade at 50% profit
3. Never traded earnings
4. Kept 30% cash at all times
5. Only used 3 core tickers
6. Checked IV before every trade
7. Followed green EMA clouds only
8. Funded LEAPs with house money
9. Scaled position sizes slowly
10. Never broke a single rule
Rules aren't restrictions.
They're the reason I win.
Stanley Druckenmiller has the most insane track record in finance: 30 years. 30% average returns. 0 losing years
"people think you need to win 80% of the time to get rich - i am wrong on half my bets but i still made 30% every single year"
"normal guys split their money into 30 different stocks to feel safe - when we see a great idea, we will put 100% of our money into 1 single trade"
"when regular guys lose they hold the stock for 2 years praying it goes back up - we take a 5% loss and walk away instantly, but when we are right we push it to make 200%"
bookmark and watch him explain how he actually plays the game
I cannot emphasize this enough. If you score 2-3 times a year- you can make a decade’s worth of return in a year. Do this for 5 years- You can literally change the entire trajectory of your new few generations.
Every year one big correction comes, you nail down that dip. Easiest money you will make.
Then you have the mini pullback, when price drops below key EMAs and reclaims. Thats when you enter fav stocks at key levels.
Feb to April- Big correction
April to June- Easy money
June - The first dip
Next? You see money moving around but market gets back to an uptrend.
Thats fuckin it guys.