The setup for growth stocks is pretty straightforward:
• The $QQQ gets back above the 50-day moving average.
OR
• We get a correction of 10%+ followed by a legitimate Follow-Through Day.
Until one of those happens, I view this as chop.
That doesn’t mean there aren’t opportunities elsewhere. Railroads, financials, REITs, Energy and other groups can absolutely have their own setups.
But that’s not what I’m talking about.
I’m talking about software, semis, neo-cloud, photonics, memory and data center names. For those groups, I’d rather wait for one of those two conditions than force trades in an environment that hasn’t yet proven itself.
Patience is the single most difficult skill to master for investing well. Too, the most impactful.
Position sizing trails patience. The more patience, the largera a position can be.
One must not mistake patience for foolhardiness.
A hardy fool is just a hardy fool.
RS is not your friend right now in market themes that are under pressure. If a sector is selling off (like AI/Data) and one or two stocks are ''holding up well'' that does not mean they are the next leaders. It probably means they're just waiting until last to get shot.
And if you bought any of the relative strength yesterday you got your ass kicked today.
Track leaders and wait for the market to turn. Don't anticipate the turn.
@ohiain Always nice to see another trading brother in Christ. God bless Iain.
Always remember "Unless the Lord builds the house, those who build it labor in vain." - Psalm 127. And that when we seek Jesus first He'll add all the other things to you (Matt 6:33).
Quote of the Day:
"Take what the market offers, when it offers. She is very generous to those who choose to capitalize on her terms..., when she's ready, not on your terms, not just when you want it.
~ @Peoplewish
@ForteCharts And what does he post that makes you want to insult him for being 'wrong'? (Which as traders we're wrong a lot and we dont have to be ashamed with being wrong as long as we dont stay wrong - this is my 2c maybe u disagree)
the previous COO of Shopify, who took over a company months from bankruptcy, was asked if he agreed that "excellence is the capacity to take pain."
Kaz Nejatian:
"yeah. over a very long period of time. the person who can hold their hand over the fire the longest tends to be the winner."
"the difference between doing something incredibly well and doing it poorly is not that high. but people just give up too soon."
"the sugar rush of easy satisfaction in the modern world has underprepared people for pain."
every profitable strategy has a stretch that makes you want to turn it off. often the edge and the giving-up point sit right next to each other. to be a great trader you often have to have a very high pain tolerance.
No one ever internalised anything from a soundbite alone.
Quotes on walls are supposed to remind you of the right thing, not teach it.
For example, @Qullamaggie quotes and clips are great — as reminders. But they aren’t enough on their own. Not if you want to learn how to think like a top performer.
How did Kristjan arrive at his output? What questions did he ask? What are his processes? What did he do when he was in your position to get to his current level?
Actions always speak louder than words.
Observing those actions in the people to whom you’re most exposed, whether through extensive study or frequent direct contact, is the best way to make them stick.
True ‘aha’ moments require internalisation — and that takes time, repetition and depth.
***
Which Thinking Patterns Are You Internalising?
Curating your environment
🔗 https://t.co/tPIXDhanBn
If you want to be a professional trader, you gotta get used to being wrong all the time and not letting that impact your ability to still put on appropriate risk for the next opportunity.
I take just as much pride in NOT trading when my edge isn't there as I do when it is.
I've taken 2 trades in the last 2 weeks.
Looking at my feed, some of you don't actually enjoy trading... you enjoy clicking buttons.
I have a gut feeling that a lot of traders have been donating a good chunk of their YTD gains as of the last few weeks.
And I wouldn't be surprised if data shows that more traders blow up from boredom than from bad market conditions.
Trading addiction is real, so please don't confuse being busy with making money.