Learn to Fish 1 Flashcards
Success
______% of traders lose it all
_______% quit in the first 2 years
Success
90% of traders lose it all
80% quit in the first 2 years
Why do traders fail?
____________ decision making
Lack of _____ Controls
Buying _________
_______ entry/Exit Strategy
No ________ Plan
Can’t read ______/Indicators
_______ Selling
________ Buying
Why do traders fail?
Emotional decision making
Lack of Risk Controls
Buying Hype
Poor entry/Exit Strategy
No trading Plan
Can’t read Charts/Indicators
Panic Selling
FOMO Buying
What are we looking for?
__________ valued plays
_________ value is less than market value
Future _________ unaccounted for
Gaps ________/Market _____ Reactions
______ sold/Neglected areas of the market
Price/Cash and Price Sales Correction
What are we looking for?
Under valued plays
Market value is less than intrinsic value
Future Demand unaccounted for
Gaps Down/Market Over Reactions
Over sold/Neglected areas of the market
Price/Cash and Price Sales Correction
It’s important to think for yourself
If everyone agrees on the ____________ of a stock
you will get ________ returns
You need to be where ________ will _____
It’s important to think for yourself
If everyone agrees on the Direction of a stock
you will get crappy returns
You need to be where money will go
Oversold
Any stock with an ___ of ______ or less
Oversold
Any stock with an RSI of 30 or less
Oversold plays
- Sort by ? Industry?
Sort by whatever you like
Go __ __ on one position
Go All In on one position
Do NOT ______________.
Do NOT Diversify
Target ___% return of my ________ Account Value
Target 1.5% return of my Total Account Value
Always Enter at ___________.
Always enter at Bottom.
Stop when I hit my ________ _________
Stop when I hit my daily target
I don’t trade ________ ____________ at once.
I don’t trade multiple positions at once.
I don’t _______ my resources/attention
I don’t split my resources/attention
I don’t need to __________ against losses.
I don’t need to balance against losses.
I don’t __________ an entry.
I don’t chase an entry
I don’t _______ trade, ________ trade, or think I can’t _____ it_____.
I don’t overtrade, revenge trade, or think i can’t lose it all.
I reduce ________ by going all in and needing only a _______ movement to have a material ________.
I reduce risk by going all in and needing only a small movement to have a material gain.
I am consistently _______
Win Rate is ___%
I will often trade the _______ Ticker ______ and _______ again
AT 1.5% 145k to 1M in 6-7 months
Compounding - No withdrawals
I am consistently Profitable
Win Rate is 80%
I will often trade the Same Ticker Over and Over again
AT 1.5% 145k to 1M in 6-7 months
Compounding - No withdrawals
Keep charts clean and _________
Keep charts clean and simple
3 Markers
- H________
- C_________
- Relative _________ _________
- Histogram - Color change, where selling pressure is giving way to buying pressure
- Crossover line - Typically happens next
- RSI - Oversold and climbing
Exit
__________ starts to change color - ____________ pressure overtaken by __________ pressure
Histogram starts to _________
_________ lines start to move closer together
RSI starts to _________ ___ or _______
Time to _______!
Exit
Histogram starts to change color - buying pressure overtaken by selling pressure
Histogram starts to decline
MACD lines start to move closer together
RSI starts to flatten out or decline
Time to EXIT!
Size Matters
On Lower ________ per_____________ Scale In
on Lower __________ per __________ Scale out
Size Matters
On Lower price per Share Scale In
on Lower Price per Share Scale out
Do not think you can ___ _________ your indicators
Do not think you can out smart your indicators
Most Profitable time is first thing in the morning at the ________ of trading
Often make target right on the ________ ________
Premarket ________
Dip from ________/Taking Profits
________ is still there
________ is still there
Volume = ________ ________
Most Profitable time is first thing in the morning at the beginning of trading
Often make target right on the morning dip
Premarket hype
Dip from Selloff
Hype is still there
Volume is still there
Volume = Price Appreciation
The goal is to ______ __________ on each trade
Protect my ________
The goal is to make money on each trade
Protect my profits
Make sure you exit __________.
Make sure you exit profitably
What to day trade?
- H_____
- S______
- S______
What to day trade?
- Hype
- Scanner
- Standby’s
Hype
Huge ________
Large followings on any _______
Large ___ _________Movement
Typically ___ at open while maintaining __________
Hype
Huge Volume
Large followings on any news
Large Pre Market Movement
Typically dip at open while maintaining volume
Scanner
Stocks with an _____ of less than ____
Sort by _______
Sort by ______ Change
Scanner
Stocks with an RSI of less than 29
Sort by Volume
Sort by Percentage Change
Stand by’s
2-4 Stocks you trade ___________
__________ is predictable
Enter at _______
Sell at ________
Stand by’s
2-4 Stocks you trade consistently
Movement is predictable
Enter at Dips
Sell at Highs
Enter at the ___________.
Not in the ___________
And absolutely NEVER at the __________
Enter at the Bottom.
Not in the Middle
And absolutely NEVER at the Top
You are not smarter than your __________
Disobey them at your own ____________
You are not smarter than your Indicators
Disobey them at your own Peril
Exit at ______ ____, or if the bottom is not able to ________
Exit at peak RSI, or if the bottom is not able to hold
Do not leave a Day Trade ______________
Do not leave a Day Trade Unattended!
Go for ___________ _____________ at size as they are easier to get, and more ____________ to execute
Go for smaller movements at size as they are easier to get, and more consistent to execute
Trade the same tickers _____________
Trade the same tickers repeatedly
Trade ________ at a _______
Trade one at a time
Look __________ to see potential
Look Left to see potential
I enter at key ___________ ____________ Indicators
I enter at key Technical Analysis Indicators
Finding Swing Trades
Finviz
Techical Tab
20 SMA 200 SMA
Finding Swing Trades
Finviz
Techical Tab
20 SMA 200 SMA
The further away from the _____________you get
the higher your risk becomes of ___________
The further away from the bottom you get
the higher your risk becomes of losing
Enter at the _________
OR
as the ____day SMA is crossing over
Enter at the bottom
OR
as the 20 Day SMA is crossing over
Know what ________ _________ or _______ you are after
Know what Price Target or Exit you are after.
If the trade changes on bad news/event
_________
You can always re-enter at a _________ point
If the trade changes on bad news/event
EXIT
You can always re-enter at a Lower point
Manage your ___________ costs
Manage your Opportunity costs
__________ as first targets are hit, the ___________of hitting the second,
______ if your are not confident
Reassess as first targets are hit, the likelihood of hitting the second,
Exit if your are not confident
Do your own ______ ______________
Don’t rely on someone else’s
Do your own Due Diligence
Don’t rely on someone else’s
Manage your _________ ______ relative to your confidence and thesis on the play
Manage your position size relative to your confidence and thesis on the play
Basics of establishing Price Targets - TA
Look _____ as history loves to repeat
Look at _________ time frames
___________ becomes _______ on a drop
Basics of establishing Price Targets - TA
Look Left as history loves to repeat
Look at Multiple time frames
Support becomes Resistance on a drop
Ignorance is ____________
Ignorance is voluntary
Valuing a stock involves understanding what it is __________
Not what it is ____________ ____
Valuing a stock involves understanding what it is worth
Not what it is selling for.
Basics of Valuation
- D__________ C_____ F_____ (DCF) - Calculates future cash flows discounted to present value and sums those to arrive at a business value
- D______D________ M_____ - Calculates the present-day price as a sum of all of its future dividend payments when discounted back to their present value
- P____ C__________ - Calculates a relative value through comparison of the current value of a business to other similar businesses by looking at trading multiples like P/E, EV/EBITDA or similar ratios
Basics of Valuation
- Discounted Cash Flow (DCF) - Calculates future cash flows discounted to present value and sums those to arrive at a business value
- Dividend Discount Model - Calculates the present-day price as a sum of all of its future dividend payments when discounted back to their present value
- Peer Comparative - Calculates a relative value through comparison of the current value of a business to other similar businesses by looking at trading multiples like P/E, EV/EBITDA or similar ratios
