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Daniel - Invest & Be Free - Learn to Fish > Learn to Fish II Sections 1-4 > Flashcards

Learn to Fish II Sections 1-4 Flashcards

1
Q

Day trading involves trades that take 5 - 10 - 15 __________. Sometime a trade can last __________.

A

Day trading involves trades that take 5 - 10 - 15 minutes. Sometime a trade can last hours.

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2
Q

No Worries about the changing ____________ of the market.

A

No Worries about the changing sentiment of the market.

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3
Q

The amount of cash you ____________ with is what you ______ with.

A

The amount of cash you closed with is what you open with.

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4
Q

It can be done ___________, with far less risk than some long-term investing

A

It can be done safely, with far less risk than some long-term investing

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5
Q

Based on an __________ and _____________ method. Not ____________.

A

Based on an organized and repeatable method. Not Guesswork.

It gives you the ability to repeat it over and over and over again.

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6
Q

Skip the Fear, Focus on the Why

  1. ____________ Decision Making
  2. ______ entry/exit
  3. Buying _______, or _____
  4. No ______ Controls
  5. Poor ________ Plan or Objective
  6. Can’t _____ Charts/Indicators
  7. ___ Holding
  8. ______ Selling
  9. __________ Buying
  10. D_____________
  11. Poor _________ Sizing
  12. ___________ Decision Making
A

Skip the Fear, Focus on the Why

  1. Emotional Decision Making
  2. Poor entry/exit
  3. Buying Hype, or News
  4. No Risk Controls
  5. Poor Trading Plan or Objective
  6. Can’t read Charts/Indicators
  7. Bag Holding
  8. Panic Selling
  9. FOMO Buying
  10. Diversification
  11. Poor Position Sizing
  12. Emotional Decision Making
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7
Q

The number one challenge you’ll face in trading is ______.

A

The number one challenge you’ll face in trading is YOU.

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8
Q

Alot of info focuses on _____ & ________. You should focus on the ‘____’ people fail to avoid that.

A

Alot of info focuses on fear & failure. You should focus on the ‘why’ people fail to avoid that.

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9
Q

How to make sure the __________ is confirmed

  1. MACD moves from _______ red to ______ red (________ pressure giving way to _________ pressure)
  2. There is a ______ in the MACD lines - This is critical
  3. MA Lines _________ in the next candles

Lesson: Wait for bottoms to confirm before entry

A

How to make sure the bottom is confirmed

  1. MACD moves from bright red to dark red (selling pressure giving way to buying pressure)
  2. There is a Curl in the MACD lines - This is critical
  3. MA Lines Confirm in the next candles

Lesson: Wait for bottoms to confirm before entry

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10
Q

Common Error #1

Diversification

  1. __________ spread way too thin
  2. Any ‘win’ is ____________
  3. Any ‘loss’ ____________ benefit of the ‘wins’
  4. Inability to monitor individual ____________
  5. Inability to manage _____________ changes
  6. Too many ____________ to monitor
  7. More trades = More _______
  8. Probability of 1 or 2 ‘___ ____’ every day is slim to zero
A

Common Error #1

Diversification

  1. Capital spread way too thin
  2. Any ‘win’ is immaterial
  3. Any ‘loss’ removes benefit of the ‘wins’
  4. Inability to monitor individual positions
  5. Inability to manage emerging changes
  6. Too many charts to monitor
  7. More trades = More Risk
  8. Probability of 1 or 2 ‘Big Wins’ every day is slim to zero
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11
Q

Common Error #1

D______________

Lesson: Confine your trades to one or two positions, and go in ___________ on those

A

Common Error #1

Diversification

Lesson: Confine your trades to one or two positions, and go in heavier on those

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12
Q

Common Error #2

FOMO - The Greater Fool Theory

  1. RSI is massively ______ ______
  2. FOMO Chasing - Creating ______ up
  3. No understanding of where buying will ____.
  4. Detached from any ___________ _________ of business performance/news

5 Eventually you always run out of ________

Lesson: Don’t chase when RSI is _____ _______…..ever.

A

Common Error #2

FOMO - The Greater Fool Theory

  1. RSI is massively overbought
  2. FOMO Chasing - Creating gaps up
  3. No understanding of where buying will end_._ .
  4. Detached from any reasonable value of business performance/news

5 Eventually you always run out of fools

Lesson: Don’t chase when RSI is overbought…..ever.

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13
Q

Nothing stays in an ___________ or an ____________ area for long.

A

Nothing stays in an Overbought or an Oversold area for long.

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14
Q

Common Error #2

The Greater _______ and/or ________

Don’t Chase when RSI is ____ ________ …. ever.

A

Common Error #2

The Greater Fool and/or FOMO

Don’t Chase when RSI is overbought …. ever.

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15
Q

Common Error #3

Bag Holding

  1. _________ Drop = panic/hope/fear set in
  2. “Losses aren’t real unless you ____”
  3. The Bag only fills with _____, not reality
  4. Set a ‘___ ____’, and stick to it

The ____________ you hold, the __________ the bag is to recover

Lesson: Cut ______ quickly, when they are __________

A

Common Error #3

Bag Holding

  1. First Drop = panic/hope/fear set in
  2. “Losses aren’t real unless you sell”
  3. The Bag only fills with hope, not reality
  4. Set a ‘bag limit’, and stick to it

The Longer you hold, the harder the bag is to recover

Lesson: Cut bags quickly, when they are small

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16
Q

Common Error #3 ___ Holding

Lesson: Cut Bags ____________, when they are _________

A

Common Error #3 Bag Holding

Lesson: Cut Bags Quickly, when they are small

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17
Q

Cut the ________ when they are _________

A

Cut the bags when they are small

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18
Q

Common Error #4

Panic Selling

  1. Oversold - __________ stays an RSI of 15 for long
  2. _________ will indicate a bottom
  3. If _________ lines are _________ - reversal is likely
  4. If _______ Down - significant buying pressure should be present
  5. Check longer ________ frames for low point over time

Lesson: Trade the __________\_, not your fears

A

Common Error #4

Panic Selling

  1. Oversold - nothing stays an RSI of 15 for long
  2. MACD will indicate a bottom
  3. If MACD lines are curling - reversal is likely
  4. If Gap Down - significant buying pressure should be present
  5. Check longer time frames for low point over time

Lesson: Trade the Chart, not your fears

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19
Q

Common Error #4 - _______ Selling

Lesson: Trade the ________, not your __________

A

Common Error #4 - Panic Selling

Lesson: Trade the Chart, not your fears

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20
Q

Bad Behaviour #1

Not using the __________ time frames to confirm __________ or which time frame to watch

A

1 - Not using the extended time frames to confirm bottom or which time frame to watch

Bad Behaviour

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21
Q

Bad Behaviour #2

Not waiting until ____________ of _________ to enter

A

2 - Not waiting until confirmation of bottom to enter

Bad Behaviour

22
Q

Bad Behaviour #3

Trying to limit the above lousy ______ losses, by selling early, usually _________ that loss

A

3 - Trying to limit the above lousy entry losses, by selling early, usually cementing that loss

Bad Behaviour

23
Q

Bad Behaviour #4

Not trusting the _________ because your confidence is shot because of lousy ________ and ______

A

4 - Not trusting the process because your confidence is shot because of lousy entries and losses

Bad Behaviour

24
Q

Bad Behaviour #5

Not Learning that if you correct the _________, you don’t get near the occurrence of ________

A

Bad Behaviour #5

Not Learning that if you correct the entries, you don’t get near the occurrence of losses

25
Q

Bad Behaviour #6

Ignoring small wins that ___________ quickly, and getting _________, usually giving back small wins

A

Bad Behaviour #6

Ignoring small wins that accumulate quickly, and getting greedy, usually giving back small wins

26
Q

Bad Behaviour #7

Not paying attention to the ‘_______’ of the trade and where to ______

A

Bad Behaviour #7

Not paying attention to the ‘meat’ of the trade and where to exit

27
Q

Bad Behaviour #8

Not paying attention to RSI and where to ______

A

Bad Behaviour #8

Not paying attention to RSI and where to exit

28
Q

Bad Behaviour #9

Taking chances after a __________ win or loss - either will give _________ of your money to the market

A

Bad Behaviour #9

Taking chances after a large win or loss - either will give more of your money to the market

29
Q

Bad Behaviour #10

_________ Trading

A

Bad Behaviour #10

Over Trading

30
Q

Bad Behaviour #11

Not cutting bags when they are _____ enough to _______ from

A

Bad Behaviour #11

Not cutting bags when they are small enough to recover from

31
Q

Bad Behaviour #12

‘_________’ in the stock, rather than trading the ______ that’s in front of you

A

Bad Behaviour #12

‘Believing’ in the stock, rather than trading the chart that’s in front of you

“Captain ‘Save a Stock’…”

32
Q

Bad Behaviour #13

Holding too long, or not long enough because you’re ___________ your indicators (see ‘believing’ in a stock)

A

Bad Behaviour #13

Holding too long, or not long enough because you’re ignoring your indicators (see ‘believing’ in a stock)

33
Q

Bad Behaviour #14

Allowing D__________

A

Bad Behaviour #14

Allowing Distractions

34
Q

Bad Behaviour #15

Not doing a _______ ___________ on your inevitable mistakes

A

Bad Behaviour #15

Not doing a lessons learned on your inevitable mistakes

35
Q

Bad Behaviour #16

Not tracking________/losses/_________ for success/_________

A

Bad Behaviour #16

Not tracking progress/losses/reasons for success/failure

36
Q

Bad Behaviour #17

Thinking you can always average down from a ________ entry

A

Bad Behaviour #17

Thinking you can always average down from a lousy entry

37
Q

Bad Behaviour #18

Thinking you know more than your ___________ do. (You don’t, no matter how smart you are)

A

Bad Behaviour #18

Thinking you know more than your indicators do. (You don’t, no matter how smart you are)

38
Q

Bad Behaviour #19

Chasing and ____________ something with an RSI >70 because someone ‘___________’ it

A

Bad Behaviour #19

Chasing and buying something with an RSI >70 because someone ‘alerted’ it

39
Q

Bad Behaviour #20

____________ Trading

A

Bad Behaviour #20

Revenge Trading

40
Q

Most Common Errors are __________, and entirely ___________

A

Most Common Errors are unforced, and entirely controllable

41
Q

You’re biggest challenge will not be the Market, it will be _________.

A

You’re biggest challenge will not be the Market, it will be you.

42
Q

Set basic trading _______ for yourself, and __________ THEM.

A

Set basic trading rules for yourself, and FOLLOW THEM.

43
Q

The most recommended way of day trading, will virtually __________ you will lose.

A

The most recommended way of day trading, will virtually guarantee you will lose.

44
Q

Trade the _____, Not your _________.

A

Trade the Chart, Not your emotions.

45
Q

Reduce risk of ________ and ______ by going ‘all-in’ on just one or two trades at a time

A

Reduce risk of failure and loss by going ‘all-in’ on just one or two trades at a time

46
Q

Finding Stocks that routinely and reliably move ___ is pretty easy.

A

Finding Stocks that routinely and reliably move 1% is pretty easy.

47
Q

Set a ________ and Stick to it

Once you’ve hit your _____ - Walk Away

A

Set a Goal and Stick to it

Once you’ve hit your goal - Walk Away

48
Q

1% method for ___________ growth

A

1% method for exponential growth

49
Q

Get the __minute chart to align with either the 1 minute chart or the 15 minute chart.

Find the Bottom.

MACD

A

Get the 5 minute chart to align with either the 1 minute chart or the 15 minute chart.

Find the Bottom.

MACD

50
Q
A

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

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