148 [If you don’t spend time studying historical stock moves over the weekend, you won’t make it trading. Jul 2, 2020]

  • WKHS yesterday did the exact same this as INO last week, I just can’t win on these shorts. It did its extended parabolic move, pulled back 31%, found support on the rising 20ema on the 60min, then it just had this big big rip and took out the previous day’s highs. Exactly the same thing as INO did; had its parabolic move, had a 22% pullback, found support on the rising 20ema, then it had a rip rally, took out the highs, then it kinda chopped around for a while and then it cracked lower. I really hope WKHS keeps going higher.
  • TSLA, so happy I bought again at 1000, it’s up 20% since. This is such a perfect stock to trade, always obeys the 10/20day. If this thing can keep going straight up to like 1400/1500, if all these charts can keep going for another 3-5days, we get some nice parabolics, there’s gonna be some epic shorting opps next week. TSLA could be a good short setup here, idk, I sold 1/3 so far, now I’m down to half size on this.
  • I have lost so much money shorting frontside, I have almost blown up several times. It’s a really important concept to understand. Either you get a real parabolic, or you short the backside.
  • PDD stopped out of adds yday but may add back today, may go heavy on it if I see a tight setup. Just bought 20kshares, so have 27500shares now, my biggest position.
  • NKLA shorted 13kshares, all I could borrow. Shorted another 8kshares [lods], feel like this thing wants to go lower. This thing had a big big breakdown today, warrants gonna be exercisable. This is a perfect chart breakdown, one of the hottest momo stocks, if the borrow wasn’t so expensive I would be in twice this size.
  • The smart money like the funds, they buy when they want to buy, most of them don’t even look at the charts at all, they just look at valuations, and sometimes not even that.
  • SHLL, this thing cramer bashed it and it’s not going down, rebuying it. Going straight up, only got filled 27kshares.
  • Position sizing, well it’s very simple, you determine how big a part of your portfolio you want to make the position, in my case say 7-10%, then you also look at the range on the chart, it’s gonna be a decent risk, am I willing to risk that much? IT has to do with the amount you want to risk and how big a part of your portfolio you want. Sometimes I buy full size immediately and sometimes I add to my positions, depends. My position sizes used to be bigger, but now usually my swings they’re around 10%, 15% if it’s a big position, they used to be bigger when my account was smaller, but now my accounts are larger I don’t give a sh*t, I made my money now I’m just trying to get by with as few headaches as possible.
  • If it’s an institutional quality stock I use the 10/20day, but if it’s like a pump or a smallcap or like a total hype stock, those trade a bit differently, then I use the intraday, the 20/65ema more aggressively, so it depends on the stock.
  • Remember guys the key to big money is not trading all the time, it’s trading right and then waiting.
  • There’s really only three setups I trade, and some variations of those. Three setups that occur over and over and over again. They occurred 10 years ago, they occurred 50 years ago and they occurred 100 years ago, and I have the proof, bc I’ve done my research. For some reason people don’t do their research, they just keep trading and doing these random things, like I realised after the first year or two, I did these random things, I followed other traders, but thankfully I realised, I need to figure out how stocks move, I need to go back historically look at 1000s of charts, actually get a feel for what do stocks move on, how do stocks move. I’m still working on it, I’ve done it for 7 years now. Most people are not willing to do that, they do a bunch of random stuff and they get a bunch of random results.
  • Markets are not a zero sum game, like poker, if one guys wins another guy loses. Markets are a wealth creation mechanism. If you make $100 doesn’t mean someone else lost $100. How? I’ll tell you how. If you have two wheels, and another guy has a frame, and you put those two wheels on that frame, now you have something more valuable than those separately. That’s how the markets work, that’s literally what companies do, and the market consists of companies, and there’s a few super companies that pretty much drive all market returns and those companies create a lot of value. The stock market grows much faster than inflation, bc as a group stocks create free cash flow. And that free cash flow gets distributed to shareholders either in the form of buybacks or dividends, and some of that cashflow gets invested in the business either in the form of acquisitions of r&d. It’s not a zero sum game, it’s not poker.
  • Yeah undercut and rally, works really well. If you get an undercut of a previous low that gets bought up immediately, in an uptrend, that’s a bullish sign. That’s very bullish. But the key is it has to be in an uptrend, can’t be some random stock. FMCI this one I was long all the way, had a big big dip, undercut the rising 20day, but immediately got bought back up, that’s a bullish sign. MELI too, look at this, had a big big rally, undercut the 10day here, immediately got bought back up and closed above the 10day. Those kinds of things happen all the time.
  • I just can’t believe some people have been trading for 10/15 years and they’re still daytrading. It took me two years to figure out I don’t wanna be a daytrader, to figure out the big money is in swing trading. Bc I went back, I looked at thousands of charts over many different decades, and I realised the big moves in stocks take weeks and months to develop. The big money is in the big moves, and it’s very hard to get a big move if you’re daytrading, easier on the short side imo, bc it’s easier to find a parabolic stock that you know is gonna have a pullback eventually, rather than finding something that’s gonna go up 50/100% intraday.
  • Most stocks I go long are not near aths, some of them are bc that’s the type of market we’re in rn, but when I went long a bunch of stocks a couple of months ago none of them were at aths or even close to it.
  • That’s your homework, 1000 stocks this weekend. If you’re gonna spend the weekend chilling, you’re doing it wrong, I’m telling you guys, you wanna make it in this business you gotta put in the work.


  • Listen to Powell, all the politicians are his bitch. Powell is god.
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