Gotta love ZERO RISK in the SP500 = $$$

[Max E.]

LOL, good stuff i960..... isnt it comical how visceral these peoples reactions are when you tell them there precious gem is going down? I gave up on twitter for much the same reason, bag holders dont want to be told their stock is done, they want someone to coddle them, and support their decision to buy a stock thats already up 300% in a couple days. Most of them would rather hear that you agree with them, then hear that they are about to take a bath because they just chased some stupid runner with no hope. They would rather lose money so long as they can tell everyone else how right they were to buy a dogshit company up 300%

Some selected ST gems:

View attachment 157927 View attachment 157930

Typical retail post-2009 bulls. Then you have this guy who keeps shorting all the way up whilst "hedging" via long DOW futures (I hope this isn't one of you guys):

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So there you have it folks - the game is about being right.

 

[i960]

That's the problem with the typical retail mindset: it's 90% ego mixed with aversion to loss/being wrong (but ego overrides managing that loss and being wrong), with a healthy dose of FOMO. Once you get past all the bullshit the markets are much more simple than people imagine. At that point its simply a focus on execution, risk management, and following a plan. You won't win all the battles, that's a given - but if one follows their discipline and has any semblance of an edge they'll come out ahead.

 

[Max E.]

That's the problem with the typical retail mindset: it's 90% ego mixed with aversion to loss/being wrong (but ego overrides managing that loss and being wrong), with a healthy dose of FOMO. Once you get past all the bullshit the markets are much more simple than people imagine. At that point its simply a focus on execution, risk management, and following a plan. You won't win all the battles, that's a given - but if one follows their discipline and has any semblance of an edge they'll come out ahead.

So much wisdom in this post, thank you!!

What i particularly liked You won't win all the battles, that's a given - but if one follows their discipline and has any semblance of an edge they'll come out ahead.

Alot of people who struggle to learn to trade dont understand this, if you are disciplined, and you only buy/sell at support/resistance, you dont even need an edge, proper money management is an edge in and of itself. On the long side im barely better than a coin flip when it comes to entries, only a 53% win rate, but im gone the second the stock breaks my support level, and i hold onto winners on the long side till they prove me wrong.

Discipline is an edge in and of istelf, i only get into trouble when i decide to act undisciplined, other than that i go through times when my pnl flat lines but i never really lose money with discretionary trades.

Anyone wanting to learn, Think about this for a second, as long as you are a little better than a coin flip at picking stocks, you will definitely be profitable so long as you are disciplined enough to put yourself in the right position, AT THE RIGHT TIME. (I.E. buy support/sell resistance, dont get involved in the middle, dont risk more than you could get rewarded.)

 

[Visaria]

On the long side im barely better than a coin flip when it comes to entries, only a 53% Edge, but im gone the second the stock breaks my support level

Just a thought...when the stock breaks support, you are out...but what if you immediately shorted that breakout? Would that be a good idea?

 

[Max E.]

Just a thought...when the stock breaks support, you are out...but what if you immediately shorted that breakout? Would that be a good idea?

For a beginner, NO, because they run the risk of getting stopped out in the middle of the move, most people wont leave themselves enough room that they can handle the stock going all through the top if that move fails, so you short at the breakdown, but then are unwilling to give it enough risk to go all the way through the top, you are eliminating the 50/50 chance, and also eliminating the risk to reward edge........ Odds are a newbie gets chopped out of the position by buying highs, and selling lows.

Dont get me wrong i buy resistance, and sell support at times, but im very quick to admit im wrong in those instances, and i actually do have a big edge when i do it, so the setups got to be good. I dont think the R:R is good enough that you can make money off randomness by buying resistance, or selling support, (I.E. Buying highs, and selling lows)

 

[romik]

Look at GBP vs YEN, food for thought that

 

[classiccharts17]

That's the problem with the typical retail mindset: it's 90% ego mixed with aversion to loss/being wrong (but ego overrides managing that loss and being wrong), with a healthy dose of FOMO. Once you get past all the bullshit the markets are much more simple than people imagine. At that point its simply a focus on execution, risk management, and following a plan. You won't win all the battles, that's a given - but if one follows their discipline and has any semblance of an edge they'll come out ahead.

Very well said!!!

 

[classiccharts17]

Just a thought...when the stock breaks support, you are out...but what if you immediately shorted that breakout? Would that be a good idea?

Jack Schwager once said, good traders know when to take a loss, Great traders reverse!

Its an old interview but very interesting how every trader is different and has his/her own way. Enjoy!

 

[Max E.]

I agree with this quote but alot of people make a big mistake here, good traders dont buy support then if it goes through support they sell it and flip short, good traders flip short at that support point, when the chart tells them that its time to be short, if your buying/selling support your often buying/selling an area where it looks good to do the opposite when your wrong, but that doesnt mean you should just flip your position, it means you need to realise when your trading a volatile setup, a short turns into a potential long, and dont get too biased either way.

Jack Schwager once said, good traders know when to take a loss, Great traders reverse!

 

[classiccharts17]

Ever heard of a prop trader called Jimmy Balodimas? Min. 16.45