• SHOP breaking out on the weekly, not sure if it’s a good setup.
• VCEL yeah looks pretty decent, orhs was the play.
• QFIN, surfing the 50day getting tighter, not bad.
• I’m still excited about the crypto trade, BTC had a little bit of a dip yesterday but it’s still in a range, building hls, I really hope this thing breaks out and goes to 90k or something.
• Put your hand in your pants and squeeze your balls, that’s how you deal with it, drawdowns are an inevitable part of the financial markets. 30% drawdowns even for the best funds is normal, it happens now and then. If you wanna make really big money, guess what, you have to endure some pain now and then.
• How many day traders are in the market wizards books? And now look around you, how many of the people you know or read about are day traders vs swing and position traders? Do your own thinking. If you have a big account it’s easier to compound it swing/position trading. The big moves take weeks and months to unfold, that’s why I started swing trading, bc I realised ok yeah you have these periods where micro and small cap stocks go nuts and you have these doubles/triples in one day, but for every one of them there’s like 50 that don’t go up 100% in a day. But finding like non pump stocks that 2/3x over weeks and months is much much easier, you don’t have to constantly fight near your entry, and look for trades every second.
• If I had to do it all over again I wouldn’t day trade at all, I would do short term swing trading 3-5days, I think you can even with a small account compound better with short term swing trading. If you have a longer term timeframe your returns are gonna be more spotty, if you have a shorter term timeframe they’re gonna be more linear, so the amount of time where you can make money per year increases if you have a shorter term swing trading timeframe.
• Every morning when you turn on your computer you can expect a market pullback, it doesn’t matter if they market has been going up or down the past few weeks or days or whatever, anytime you come into the market expect a possible market pullback, you always have to be prepared for a possible market pullback, it can happen any time. That’s why it’s so important to have an exit strategy on all trades.
• All the best trades I’ve had on the long side are on stocks that have already doubled and tripled in the past few months. And all the best shorts I’ve had are well my parabolic short setup, that’s the criteria you know really really strong stocks.
• If you swing trade on the long side is when the market takes out a multi month range to the upside or when coming out of a multi month correction, that’s when you should be sizing up, when you see a lot of setups emerge.
• TME, looks how it undercut and reclaimed the 200day, and now it’s testing the 200day again and building hls, it is potentially bottoming here. BIDU is much stronger, had a big bounce and now it’s kinda going sideways, I think it needs more time. Not really my types of setups, I like them when they’re above all the MAs, that’s where I’ve found the big money is, those types of setups, htfs, channels, breakouts etc.
• Shorting is an extremely hard game, even if you ask some of the best hedge fund managers that run long short funds, most of them have said it doesn’t even add any alpha, all shorting does is help smoothen out the volatility of the fund. If dampens the returns in raging bull markets and it dampens the drawdowns in bear markets. Unless you’re a daytrader/swing trader and trade these very specific setups, shorting is not really a thing, it just doesn’t make sense.
• I’m actively working on being inactive, waiting for those perfect opps, that’s where the big money is. Those perfect opps only come around maybe a couple of times per Q, so it doesn’t really make sense to force trades 90% of the time, or do some mediocre setups, like I know what type of stocks where my big money comes from. It’s EPs, like earnings EPs that gap up over multi month and sometimes multi year ranges. It’s htfs of different types like TSLA or these channel breakouts, or stuff like like CELH, DQ was another, and all of these stocks had already 2/3x before I bought them. And then we have also these parabolic shorts, stuff like LAZR, EYES, MRNA, GME obviously parabolic short then the channel breakout and then the flag breakout. Those 2-3 setups that’s where my big money has come from, everything else is pretty much noise.
• That’s what Darvas did too, he figured out the best way to find big winners is to wait for a stock to double, bc a stock that’s gonna go up 1000%, it has to double first, and he built a trading methodology around that concept. Fast growing stocks in new emerging industries, that have already doubled, it’s genius.
• What I usually do is skim through seeking alpha, like 90% of the articles are bs but you can read up on these companies, especially when a new company is coming to the market, I just skim through them so like if you find a ticker let’s say NVCR, big earnings big move going up for years and years, so what’s the driving force, you can quickly go through that’s interesting, that’s how you learn about these companies, and you will learn about trends and themes. Bc if you find something that’s really intriguing, maybe there’s 100 multi billion dollar funds out there who think the stock is equally intriguing and they’re gonna buy it. Pro tip.
• Before every single market crash that I’ve traded through, all my stops get triggered before the crash. Before the corona sell off mid Feb2020, I got stopped out of pretty much everything, before the big move down. Same here Apr/May2019 before the sell off everything stopped me out. Same here, Sep/Oct2018 before this multi month pullback, all of my stocks stopped me out before the pullback. And if the best of the best are pulling back, you don’t wanna buy some random stock that happens to look good.
• TSLA if the 50day can come down a little bit more, it’s setting up, it had this big retrace, undercut the 150day, reclaimed, retested it, bounced perfectly off the 150day, bounced a little bit more, started failing at the 20day, tested the 150day once more bounced perfectly off of it, and now it’s kinda building a flag here. This could be a great setup for next week, look at the flag on the weekly, been building hls and it has this range here, not bad at all, similar to how it looked here [Nov2020] if it can go sideways a few more weeks would be ideal. These are the patterns you’re always looking for in the strongest stocks, these types of triangles and channels, it’s the same things over and over again.
• Let’s look at something like CSCO for eg, look at this thing had hls pretty much all the time, then it was chop chop chop, then we got into bear market and you got these kinda opposite, lhs. Forgive me, you shouldn’t swear in church, but, there will be a time when TSLA will look like this.

Misc:

• 100M when I get there I’m gonna say adios and I’m gonna delete the stream, adios suckers.
• Thinking about adding a testimonials page to my blog. I got you into a Nocco addiction? Sorry, didn’t mean to.