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Daniel - Invest & Be Free - Learn to Fish > Learn to Fish 1 > Flashcards

Learn to Fish 1 Flashcards

1
Q

Success

______% of traders lose it all

_______% quit in the first 2 years

A

Success

90% of traders lose it all

80% quit in the first 2 years

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2
Q

Why do traders fail?

____________ decision making

Lack of _____ Controls

Buying _________

_______ entry/Exit Strategy

No ________ Plan

Can’t read ______/Indicators

_______ Selling

________ Buying

A

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

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3
Q

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

A

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

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4
Q

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 _____

A

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

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5
Q

Oversold

Any stock with an ___ of ______ or less

A

Oversold

Any stock with an RSI of 30 or less

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6
Q

Oversold plays

  1. Sort by ? Industry?
A

Sort by whatever you like

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7
Q

Go __ __ on one position

A

Go All In on one position

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8
Q

Do NOT ______________.

A

Do NOT Diversify

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9
Q

Target ___% return of my ________ Account Value

A

Target 1.5% return of my Total Account Value

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10
Q

Always Enter at ___________.

A

Always enter at Bottom.

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11
Q

Stop when I hit my ________ _________

A

Stop when I hit my daily target

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12
Q

I don’t trade ________ ____________ at once.

A

I don’t trade multiple positions at once.

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13
Q

I don’t _______ my resources/attention

A

I don’t split my resources/attention

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14
Q

I don’t need to __________ against losses.

A

I don’t need to balance against losses.

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15
Q

I don’t __________ an entry.

A

I don’t chase an entry

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16
Q

I don’t _______ trade, ________ trade, or think I can’t _____ it_____.

A

I don’t overtrade, revenge trade, or think i can’t lose it all.

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17
Q

I reduce ________ by going all in and needing only a _______ movement to have a material ________.

A

I reduce risk by going all in and needing only a small movement to have a material gain.

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18
Q

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

A

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

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19
Q

Keep charts clean and _________

A

Keep charts clean and simple

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20
Q

3 Markers

  1. H________
  2. C_________
  3. Relative _________ _________
A
  1. Histogram - Color change, where selling pressure is giving way to buying pressure
  2. Crossover line - Typically happens next
  3. RSI - Oversold and climbing
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21
Q

Exit

__________ starts to change color - ____________ pressure overtaken by __________ pressure

Histogram starts to _________

_________ lines start to move closer together

RSI starts to _________ ___ or _______

Time to _______!

A

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!

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22
Q

Size Matters

On Lower ________ per_____________ Scale In

on Lower __________ per __________ Scale out

A

Size Matters

On Lower price per Share Scale In

on Lower Price per Share Scale out

23
Q

Do not think you can ___ _________ your indicators

A

Do not think you can out smart your indicators

24
Q

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 = ________ ________

A

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

25
Q

The goal is to ______ __________ on each trade

Protect my ________

A

The goal is to make money on each trade

Protect my profits

26
Q

Make sure you exit __________.

A

Make sure you exit profitably

27
Q

What to day trade?

  1. H_____
  2. S______
  3. S______
A

What to day trade?

  1. Hype
  2. Scanner
  3. Standby’s
28
Q

Hype

Huge ________

Large followings on any _______

Large ___ _________Movement

Typically ___ at open while maintaining __________

A

Hype

Huge Volume

Large followings on any news

Large Pre Market Movement

Typically dip at open while maintaining volume

29
Q

Scanner

Stocks with an _____ of less than ____

Sort by _______

Sort by ______ Change

A

Scanner

Stocks with an RSI of less than 29

Sort by Volume

Sort by Percentage Change

30
Q

Stand by’s

2-4 Stocks you trade ___________

__________ is predictable

Enter at _______

Sell at ________

A

Stand by’s

2-4 Stocks you trade consistently

Movement is predictable

Enter at Dips

Sell at Highs

31
Q

Enter at the ___________.

Not in the ___________

And absolutely NEVER at the __________

A

Enter at the Bottom.

Not in the Middle

And absolutely NEVER at the Top

32
Q

You are not smarter than your __________

Disobey them at your own ____________

A

You are not smarter than your Indicators

Disobey them at your own Peril

33
Q

Exit at ______ ____, or if the bottom is not able to ________

A

Exit at peak RSI, or if the bottom is not able to hold

34
Q

Do not leave a Day Trade ______________

A

Do not leave a Day Trade Unattended!

35
Q

Go for ___________ _____________ at size as they are easier to get, and more ____________ to execute

A

Go for smaller movements at size as they are easier to get, and more consistent to execute

36
Q

Trade the same tickers _____________

A

Trade the same tickers repeatedly

37
Q

Trade ________ at a _______

A

Trade one at a time

38
Q

Look __________ to see potential

A

Look Left to see potential

39
Q

I enter at key ___________ ____________ Indicators

A

I enter at key Technical Analysis Indicators

40
Q

Finding Swing Trades

Finviz

Techical Tab

20 SMA 200 SMA

A

Finding Swing Trades

Finviz

Techical Tab

20 SMA 200 SMA

41
Q

The further away from the _____________you get

the higher your risk becomes of ___________

A

The further away from the bottom you get

the higher your risk becomes of losing

42
Q

Enter at the _________

OR

as the ____day SMA is crossing over

A

Enter at the bottom

OR

as the 20 Day SMA is crossing over

43
Q

Know what ________ _________ or _______ you are after

A

Know what Price Target or Exit you are after.

44
Q

If the trade changes on bad news/event

_________

You can always re-enter at a _________ point

A

If the trade changes on bad news/event

EXIT

You can always re-enter at a Lower point

45
Q

Manage your ___________ costs

A

Manage your Opportunity costs

46
Q

__________ as first targets are hit, the ___________of hitting the second,

______ if your are not confident

A

Reassess as first targets are hit, the likelihood of hitting the second,

Exit if your are not confident

47
Q

Do your own ______ ______________

Don’t rely on someone else’s

A

Do your own Due Diligence

Don’t rely on someone else’s

48
Q

Manage your _________ ______ relative to your confidence and thesis on the play

A

Manage your position size relative to your confidence and thesis on the play

49
Q

Basics of establishing Price Targets - TA

Look _____ as history loves to repeat

Look at _________ time frames

___________ becomes _______ on a drop

A

Basics of establishing Price Targets - TA

Look Left as history loves to repeat

Look at Multiple time frames

Support becomes Resistance on a drop

50
Q

Ignorance is ____________

A

Ignorance is voluntary

51
Q

Valuing a stock involves understanding what it is __________

Not what it is ____________ ____

A

Valuing a stock involves understanding what it is worth

Not what it is selling for.

52
Q

Basics of Valuation

  1. D__________ C_____ F_____ (DCF) - Calculates future cash flows discounted to present value and sums those to arrive at a business value
  2. 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
  3. 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
A

Basics of Valuation

  1. Discounted Cash Flow (DCF) - Calculates future cash flows discounted to present value and sums those to arrive at a business value
  2. 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
  3. 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
53
Q
A

Daniel - Invest & Be Free - Learn to Fish (7 decks)

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