Learn to Fish II Sections 1-4 Flashcards
Day trading involves trades that take 5 - 10 - 15 __________. Sometime a trade can last __________.
Day trading involves trades that take 5 - 10 - 15 minutes. Sometime a trade can last hours.
No Worries about the changing ____________ of the market.
No Worries about the changing sentiment of the market.
The amount of cash you ____________ with is what you ______ with.
The amount of cash you closed with is what you open with.
It can be done ___________, with far less risk than some long-term investing
It can be done safely, with far less risk than some long-term investing
Based on an __________ and _____________ method. Not ____________.
Based on an organized and repeatable method. Not Guesswork.
It gives you the ability to repeat it over and over and over again.
Skip the Fear, Focus on the Why
- ____________ Decision Making
- ______ entry/exit
- Buying _______, or _____
- No ______ Controls
- Poor ________ Plan or Objective
- Can’t _____ Charts/Indicators
- ___ Holding
- ______ Selling
- __________ Buying
- D_____________
- Poor _________ Sizing
- ___________ Decision Making
Skip the Fear, Focus on the Why
- Emotional Decision Making
- Poor entry/exit
- Buying Hype, or News
- No Risk Controls
- Poor Trading Plan or Objective
- Can’t read Charts/Indicators
- Bag Holding
- Panic Selling
- FOMO Buying
- Diversification
- Poor Position Sizing
- Emotional Decision Making
The number one challenge you’ll face in trading is ______.
The number one challenge you’ll face in trading is YOU.
Alot of info focuses on _____ & ________. You should focus on the ‘____’ people fail to avoid that.
Alot of info focuses on fear & failure. You should focus on the ‘why’ people fail to avoid that.
How to make sure the __________ is confirmed
- MACD moves from _______ red to ______ red (________ pressure giving way to _________ pressure)
- There is a ______ in the MACD lines - This is critical
- MA Lines _________ in the next candles
Lesson: Wait for bottoms to confirm before entry
How to make sure the bottom is confirmed
- MACD moves from bright red to dark red (selling pressure giving way to buying pressure)
- There is a Curl in the MACD lines - This is critical
- MA Lines Confirm in the next candles
Lesson: Wait for bottoms to confirm before entry
Common Error #1
Diversification
- __________ spread way too thin
- Any ‘win’ is ____________
- Any ‘loss’ ____________ benefit of the ‘wins’
- Inability to monitor individual ____________
- Inability to manage _____________ changes
- Too many ____________ to monitor
- More trades = More _______
- Probability of 1 or 2 ‘___ ____’ every day is slim to zero
Common Error #1
Diversification
- Capital spread way too thin
- Any ‘win’ is immaterial
- Any ‘loss’ removes benefit of the ‘wins’
- Inability to monitor individual positions
- Inability to manage emerging changes
- Too many charts to monitor
- More trades = More Risk
- Probability of 1 or 2 ‘Big Wins’ every day is slim to zero
Common Error #1
D______________
Lesson: Confine your trades to one or two positions, and go in ___________ on those
Common Error #1
Diversification
Lesson: Confine your trades to one or two positions, and go in heavier on those
Common Error #2
FOMO - The Greater Fool Theory
- RSI is massively ______ ______
- FOMO Chasing - Creating ______ up
- No understanding of where buying will ____.
- Detached from any ___________ _________ of business performance/news
5 Eventually you always run out of ________
Lesson: Don’t chase when RSI is _____ _______…..ever.
Common Error #2
FOMO - The Greater Fool Theory
- RSI is massively overbought
- FOMO Chasing - Creating gaps up
- No understanding of where buying will end_._ .
- 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.
Nothing stays in an ___________ or an ____________ area for long.
Nothing stays in an Overbought or an Oversold area for long.
Common Error #2
The Greater _______ and/or ________
Don’t Chase when RSI is ____ ________ …. ever.
Common Error #2
The Greater Fool and/or FOMO
Don’t Chase when RSI is overbought …. ever.
Common Error #3
Bag Holding
- _________ Drop = panic/hope/fear set in
- “Losses aren’t real unless you ____”
- The Bag only fills with _____, not reality
- Set a ‘___ ____’, and stick to it
The ____________ you hold, the __________ the bag is to recover
Lesson: Cut ______ quickly, when they are __________
Common Error #3
Bag Holding
- First Drop = panic/hope/fear set in
- “Losses aren’t real unless you sell”
- The Bag only fills with hope, not reality
- 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
Common Error #3 ___ Holding
Lesson: Cut Bags ____________, when they are _________
Common Error #3 Bag Holding
Lesson: Cut Bags Quickly, when they are small
Cut the ________ when they are _________
Cut the bags when they are small
Common Error #4
Panic Selling
- Oversold - __________ stays an RSI of 15 for long
- _________ will indicate a bottom
- If _________ lines are _________ - reversal is likely
- If _______ Down - significant buying pressure should be present
- Check longer ________ frames for low point over time
Lesson: Trade the __________\_, not your fears
Common Error #4
Panic Selling
- Oversold - nothing stays an RSI of 15 for long
- MACD will indicate a bottom
- If MACD lines are curling - reversal is likely
- If Gap Down - significant buying pressure should be present
- Check longer time frames for low point over time
Lesson: Trade the Chart, not your fears
Common Error #4 - _______ Selling
Lesson: Trade the ________, not your __________
Common Error #4 - Panic Selling
Lesson: Trade the Chart, not your fears
Bad Behaviour #1
Not using the __________ time frames to confirm __________ or which time frame to watch
1 - Not using the extended time frames to confirm bottom or which time frame to watch
Bad Behaviour
Bad Behaviour #2
Not waiting until ____________ of _________ to enter
2 - Not waiting until confirmation of bottom to enter
Bad Behaviour
Bad Behaviour #3
Trying to limit the above lousy ______ losses, by selling early, usually _________ that loss
3 - Trying to limit the above lousy entry losses, by selling early, usually cementing that loss
Bad Behaviour
Bad Behaviour #4
Not trusting the _________ because your confidence is shot because of lousy ________ and ______
4 - Not trusting the process because your confidence is shot because of lousy entries and losses
Bad Behaviour
Bad Behaviour #5
Not Learning that if you correct the _________, you don’t get near the occurrence of ________
Bad Behaviour #5
Not Learning that if you correct the entries, you don’t get near the occurrence of losses
Bad Behaviour #6
Ignoring small wins that ___________ quickly, and getting _________, usually giving back small wins
Bad Behaviour #6
Ignoring small wins that accumulate quickly, and getting greedy, usually giving back small wins
Bad Behaviour #7
Not paying attention to the ‘_______’ of the trade and where to ______
Bad Behaviour #7
Not paying attention to the ‘meat’ of the trade and where to exit
Bad Behaviour #8
Not paying attention to RSI and where to ______
Bad Behaviour #8
Not paying attention to RSI and where to exit
Bad Behaviour #9
Taking chances after a __________ win or loss - either will give _________ of your money to the market
Bad Behaviour #9
Taking chances after a large win or loss - either will give more of your money to the market
Bad Behaviour #10
_________ Trading
Bad Behaviour #10
Over Trading
Bad Behaviour #11
Not cutting bags when they are _____ enough to _______ from
Bad Behaviour #11
Not cutting bags when they are small enough to recover from
Bad Behaviour #12
‘_________’ in the stock, rather than trading the ______ that’s in front of you
Bad Behaviour #12
‘Believing’ in the stock, rather than trading the chart that’s in front of you
“Captain ‘Save a Stock’…”
Bad Behaviour #13
Holding too long, or not long enough because you’re ___________ your indicators (see ‘believing’ in a stock)
Bad Behaviour #13
Holding too long, or not long enough because you’re ignoring your indicators (see ‘believing’ in a stock)
Bad Behaviour #14
Allowing D__________
Bad Behaviour #14
Allowing Distractions
Bad Behaviour #15
Not doing a _______ ___________ on your inevitable mistakes
Bad Behaviour #15
Not doing a lessons learned on your inevitable mistakes
Bad Behaviour #16
Not tracking________/losses/_________ for success/_________
Bad Behaviour #16
Not tracking progress/losses/reasons for success/failure
Bad Behaviour #17
Thinking you can always average down from a ________ entry
Bad Behaviour #17
Thinking you can always average down from a lousy entry
Bad Behaviour #18
Thinking you know more than your ___________ do. (You don’t, no matter how smart you are)
Bad Behaviour #18
Thinking you know more than your indicators do. (You don’t, no matter how smart you are)
Bad Behaviour #19
Chasing and ____________ something with an RSI >70 because someone ‘___________’ it
Bad Behaviour #19
Chasing and buying something with an RSI >70 because someone ‘alerted’ it
Bad Behaviour #20
____________ Trading
Bad Behaviour #20
Revenge Trading
Most Common Errors are __________, and entirely ___________
Most Common Errors are unforced, and entirely controllable
You’re biggest challenge will not be the Market, it will be _________.
You’re biggest challenge will not be the Market, it will be you.
Set basic trading _______ for yourself, and __________ THEM.
Set basic trading rules for yourself, and FOLLOW THEM.
The most recommended way of day trading, will virtually __________ you will lose.
The most recommended way of day trading, will virtually guarantee you will lose.
Trade the _____, Not your _________.
Trade the Chart, Not your emotions.
Reduce risk of ________ and ______ by going ‘all-in’ on just one or two trades at a time
Reduce risk of failure and loss by going ‘all-in’ on just one or two trades at a time
Finding Stocks that routinely and reliably move ___ is pretty easy.
Finding Stocks that routinely and reliably move 1% is pretty easy.
Set a ________ and Stick to it
Once you’ve hit your _____ - Walk Away
Set a Goal and Stick to it
Once you’ve hit your goal - Walk Away
1% method for ___________ growth
1% method for exponential growth
Get the __minute chart to align with either the 1 minute chart or the 15 minute chart.
Find the Bottom.
MACD
Get the 5 minute chart to align with either the 1 minute chart or the 15 minute chart.
Find the Bottom.
MACD
