Continuous Learning: Markets evolve, and so should your knowledge. Read books, attend webinars, join trading forums, buy trading courses. Watch the odd YouTube video here and there but don't overload yourself and get analysis paralysis. Learn and follow a teacher and style you like, but be sure to crack on and start becoming self sufficient as soon as possible.
Pennystock Supernovas
Timothy Sykes has a great framework to focus on stocks that usually run pre-market. The step to focus on is step 3: Step #1: The Pre-Pump or Promotion Step #2: Ramp Step #3: Supernova • This step represents the peak of the stock's price increase during the pump. It's often the point where the stock achieves its highest valuation due to the cumulative effect of the promotion. At this stage, there's typically high volatility, with the price possibly fluctuating widely even within a trading day. It's a critical moment for traders to decide whether to sell or hold, as the...
Study patterns
“Price action - when looking at a chart, we're looking at a literal painting of how the entire neural network of traders as a whole reacted under certain situations.” And they may do it again and again. So spotting the patterns that repeat can give us an advantage in the market to forecast what might happen in the future.Source: Cameron Fous - https://youtu.be/5vhU7u79_as
Use Leverage Wisely (or not at all): While leverage can amplify profits, it also magnifies losses. If you use leverage, understand it fully and manage your risk accordingly.
Avoid Prediction, Focus on Probability: Instead of trying to predict the market, focus on probabilities. What are the odds that your strategy will work based on past performance? Go through the charts and backtest your strategy at least 100 times and try and see if it will work for you, then try it out.
Risk Management is Key
Never risk more than you can afford to lose. A common rule of thumb is to risk no more than 1-2% of your total trading capital on a single trade. This approach helps protect your capital and ensures that a series of losses won't devastate your account. Additionally, always use stop-loss orders to limit potential losses on each trade. This discipline is crucial in maintaining a sustainable trading strategy.
Understand What You're Trading
Whether it's stocks, forex, commodities, or cryptocurrencies, know the specifics of what you're dealing with. Each market has its own dynamics, trading hours, and influencing factors.
Twitter (x) is a great tool to gauge market sentiment and research projects to invest in. Sometimes you can spot counter trends and get a sense of things like greed and fear in the market. But it shouldn't be a place to blindly follow advice. Do your own research and be careful. My account to connect: https://x.com/coinstare
There's more than one way to skin a cat. We don't need to get bogged down watching gazillions of YouTube videos to end up with analysis paralysis. It's an endless battle trying to find the perfect timeframe or strategy. Just pick one indicator or strategy and stick with that.
Based on several brokers’ studies, as many as 90% (more likely 95%) of traders are estimated to lose money in the markets. So take what you can get and prepare for a rainy day.
Wait for the trade to come to you
Using support and resistance levels I drew a squiggle of where I think the price will go. My bids are set in the yellow box around (1). But if the token decides to run and break resistance then I can enter on the retest of (2) or (3) and ride the breakout. Both are better places than where the price is right now. There's no need to rush into a trade. This is the same as avoiding FOMO (Fear of Missing Out).
How to pocket watch cryptos
1. Use Dexscreener or GMGM 2. Scan a token you like or something under filters such as > $20k minimum liquidity, > $1m market cap, > 48 hours pair age 3. Look 👀 at the "Top Traders" with a > 30% win rate and >80% 30-day PNL 4. Follow their activity with your own bags 💰 Make the crypto swaps using your favourite exchange or use a Crypto Swap site like Ghosty.
Rules to short a stock
Other tips: • TradingView: Add VWAP (blue line), 200 SMA (purple line), Volume • Watch on 5 mins at pre-open • Use TradeZero for shorting or a crypto exchange for crypto futures • Yahoo Finance • Stock Screener look for green or https://finviz.com/ or use my free screener • Buy $3 month Nasdaq for solid data in TradingView
Remember: all crypto and penny stocks are going to zero one day so be sure to lock in gains or be ready to short after a huge run-up in price.
Close your trades
Risk management is the hardest thing to learn - despite planning the trade 100%, I round-tripped all the profit by not closing the trade near targets.
