The Importance of Trading Rules (Quick thread)

Last week I sent out this poll asking if people have a written plan:

https://t.co/ZSlPJOGHG1
Over 60% of people said they did not have one.

It's now one of my main goals to get as many people as possible to commit to writing their own rules which codify their goals and methods.
I strongly believe that writing down your strategy especially if you are a new trader/investor will lead to improved and more consistent performance in the stock market.
Trading the markets is a tough business, money is on the line and emotions can run high.

Preparing ahead of time is essential so that in the moment you are just executing your plan.

This is the best way to stay in the game for the long haul
And funnily enough, even though 60% of respondents did not have a written plan, almost 85% believed having one would improve their performance.

That means people need to put in the work. Do it.

https://t.co/XQhpBeShOu
Rules should be personal, based on your own experiences, style, and timeframe.

However, the most important thing is that you have them and update them regularly based on post-analysis of your own trading and studying past winners
In my view, any set of trading rules should cover these main topics at the least:

Determining Market Conditions
Stock Selection
Entry Setups
Stop Loss Management
Position Management/ Sell Rules
Mindset/Psychology
Post Analysis
Routines
Dealing with earnings
Crisis Management
They should also outline your own personal goals when it comes to investing.

Your rules should be granular enough that someone with a similar amount of knowledge could follow your strategy.
Get started this weekend if you haven't already, get something down on paper.

It should take about an hour to get your main thoughts across and it's worth it believe me.
For trading rules guidance, I highly suggest you check out the Youtube Webinar @RayTL_ and I hosted on the @TraderLion_ channel

Ray walks through so many important concepts when it comes to rules and how to write them

#Absorb #Study #Apply #Repeat

https://t.co/Cf3LOB3Zu9

More from Richard Moglen 📽️🦁🚢

How to time the market (thread)

There is the old saying that “Time in the market beats timing the market” The chart below from Dr. Wish’s @WishingWealth presentation at the @TraderLion_ conference shows that to be false.

Full presentation:
https://t.co/o2f21GBXci


The green line is unattainable realistically, however, missing volatile times during corrections yields better performance than buy and hold and we can aim for the green line.

Investors usually only show the gray and red results.

More

There are many strategies for investing/trading in the stock market operating within different timeframes and with different objectives.

That is of course what creates a market and opportunity. Timing the market may not be what works for you or what fits your goals/lifestyle.

However, everyone involved in the market is here to make money over time and corrections can cause huge drawdowns in the high alpha names negating incredible performance during strong market uptrends.

More from Traderlion

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Trading view scanner process -

1 - open trading view in your browser and select stock scanner in left corner down side .

2 - touch the percentage% gain change ( and u can see higest gainer of today)


3. Then, start with 6% gainer to 20% gainer and look charts of everyone in daily Timeframe . (For fno selection u can choose 1% to 4% )

4. Then manually select the stocks which are going to give all time high BO or 52 high BO or already given.

5. U can also select those stocks which are going to give range breakout or already given range BO

6 . If in 15 min chart📊 any stock sustaing near BO zone or after BO then select it on your watchlist

7 . Now next day if any stock show momentum u can take trade in it with RM

This looks very easy & simple but,

U will amazed to see it's result if you follow proper risk management.

I did 4x my capital by trading in only momentum stocks.

I will keep sharing such learning thread 🧵 for you 🙏💞🙏

Keep learning / keep sharing 🙏
@AdityaTodmal
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