I started trading stocks when I was 21 years old.
Since then, I've...
โข Lost $32,000 overnight
โข Gained it all back (and more)
โข Started trading full time
โข Created a trading YouTube channel
If I had to do it all over again, here are 5 things I'd do differently.
Even excluding
@markminervini
top 3 months he'd have a 9 month return of 91%. The big take away for me is he never had a losing month where he had to dig himself out of a hole.
If you take care of the downside the upside will resolve itselfโผ๏ธ
#3
: Read these books in order:
โข How I made $2 Million in the Stock Market - Nicolas Darvas
โข How to Make Money in Stocks - William O'Neil
โข Think and Trade like a Champion-
@markminervini
The best ROI is the knowledge these books instill for just $65.
#3
: Read these books in order:
โข How I made $2 Million in the Stock Market - Nicolas Darvas
โข How to Make Money in Stocks - William O'Neil
โข Think and Trade like a Champion-
@markminervini
The best ROI is the knowledge these books instill for just $65.
Stan Weinstein has saved me so much money in 2021 and 2022.
Learning stage analysis will help you avoid disasters in the market. This is a must read for investors and traders alike.
TL;DR: 5 things I'd do differently to improve as a trader, faster.
โข Turn off the Financial News
โข Keep your Charts Clean
โข Read the Best Trading Books
โข Stop Copying Twitter Trades
โข Always Prioritize Risk Management
#5
: Always prioritize risk management.
It has taken me many years to realize risk management matters most.
Don't pay attention to the winners you missed.
Don't feel the need to trade every day.
Just focus on managing the downside risk and the upside will take care of itself.
TL;DR: 5 things I'd do differently to improve as a trader, faster.
โข Turn off the Financial News
โข Keep your Charts Clean
โข Read the Best Trading Books
โข Stop Copying Twitter Trades
โขย Always Prioritize Risk Management
#2
: Keep your charts clean; stop adding indicators!
I thought the more indicators I used, the better I'd trade.
I was wrong.
Instead, start with the basics; Price, Volume & Moving Averages. By doing this you:
โข Avoid overtrading
โข Limit signal noise
โข Simplify your trading
๐ A look at how the leaders acted 5/7/24:
๐ 3/9 Up on the day
๐ $CPNG $TMDX $VRT New Highs!
๐ฎโ๐จ Rally losing a bit of steam and leaders pull in
๐ Be on the hunt for Relative Strength New Highs
$APP $CAVA $CPNG $CRS $CVNA $FUTU $NVDA $TMDX $VRT
#1
: Don't listen to financial news, or any news for that matter.
When I started trading I thought I had to know every piece of breaking news to make money.
I didn't.
It led to overtrading, closing positions early, & random results.
Instead, stick to your pre-market plan.
41 years, 6 days a week, 10 hour days.
Couldnโt be more proud of my Dad finally retiring from Waste Management as a garbage driver. Heโs sacrificed so much to provide for our family & teach my brother an I what hard work looks like. Time for nap ๐
Only 39 stocks made relative strength new highs today re-confirming the strength coming from the stocks off the lows.
BUT Semiconductor stocks emerging as a potential leadership group:
$ON $TXN $MCHP $AEHR $AMKR $MTSI $COHU $AEIS
Learn how to short stocks from US Investing Champ
@LeifSoreide
!
๐ฝ๏ธ In the video we cover:
๐ Ideal Market Conditions for Shorting
๐ His Favorite Setups
๐ฏ Entry & Exit Tactics
โ Real Trade Examples
๐ Like and Retweet! ๐
#5
: Always prioritize risk management.
It has taken me many years to realize risk management matters most.
Don't pay attention to the winners you missed.
Don't feel the need to trade every day.
Just focus on managing the downside risk and the upside will take care of itself.
#4
: Stop copying trades you see on Twitter.
"If I'm in the stocks that the pros are trading, I'll make big money!"
No. I don't have the same strategy, position size, stop, entry or exit as them.
Copying trades delays your trading education, ownership of results, and success.
Two traders I greatly respect with different takes on the market respectfully communicating.
This is what Fintwit can be if you leave your ego out and strive for understanding, instead of putting others down ๐๐ป
#2
: Keep your charts clean; stop adding indicators!
I thought the more indicators I used, the better I'd trade.
I was wrong.
Instead, start with the basics; Price, Volume & Moving Averages. By doing this you:
โขย Avoid overtrading
โขย Limit signal noise
โข Simplify your trading
Overlapping themes from the
@TraderLion_
conference:
1. Focus on stocks with relative strength lines in uptrends
2. Identify groups showing strength
3. Don't fight the fed
4. ALWAYS manage risk
5. NEVER give up
#1
: Don't listen to financial news, or any news for that matter.
When I started trading I thought I had to know every piece of breaking news to make money.
I didn't.
It led to overtrading, closing positions early, & random results.
Instead, stick to your pre-market plan.
This year 80% of the trades I've made have been undercut & rallies or pullbacks to support gaps. It feels like I've finally found the system that fits me that I can take 100% ownership on, & my results have been my best so far.
Here's my current portfolio with entry examples ๐
$SMCI Largest position currently and weekly chart shows big potential. Not many stocks can have monstrous rallies like SMCI did and correct less than 40% (See $AMR)
$NVDA to me is still the leader in the group (acting well) but $SMCI
#2
with higher ADR.
Quick snapshot of how potential leaders are holding up. Pretty strong across the board! Those that broke out early are resting a bit, while semi names join the party.
$MU one of the strongest names in the market now. Take note; MU above all key moving averages, and pushing new highs while the $QQQ is under all its MAs pushing new lows.
Once market firms up $MU will be a main focus.
#IBDPartner
@IBDinvestors
If you enjoyed this thread please:
1. Retweet the tweet below to pass it on
2. Follow
@NickDrendel
3. Subscribe to my YouTube channel for more trading content! -
I started trading stocks when I was 21 years old.
Since then, I've...
โข Lost $32,000 overnight
โข Gained it all back (and more)
โข Started trading full time
โข Created a trading YouTube channel
If I had to do it all over again, here are 5 things I'd do differently.
Marine Shippers seem to be an emerging theme to focus on. Many of these names are emerging from two year bases. Chart of $GSL but other names to watch $CMRE $DAC $GNK $GOGL $GSL $MATX $SBLK $ZIM
One of the mistakes I made often in 2021 was continuing to build exposure as the market rally got late in it's move. Then during the pullback I'd get flushed out of everything for a loss.
Learn when to press the gas and when to take a step back and let the market consolidate.
๐ข Exciting Announcement!
After 2 years working on the
@TraderLion_
team I've been brought on the
@Deepvue
project as a Data Integrity Analyst!
As a former Actuary, I know the importance of clean data & I'm excited to help build this revolutionary tool!
#4
: Stop copying trades you see on Twitter.
"If I'm in the stocks that the pros are trading, I'll make big money!"
No. I don't have the same strategy, position size, stop, entry or exit as them.
Copying trades delays your trading education, ownership of results, and success.
$QQQ Every time we've come to the 20EMA the next day we've gapped up & rallied from there. This morning we are getting a gap up after testing the 20EMA yesterday.
If we rally through the opening range, trend continues. If we gap & fade that's a huge character change.
Semis went from leading group to taken to the cleaners:
๐ด $GFS 79.50 โก๏ธ 59.50 (-25%)
๐ด $AOSL 70.00 โก๏ธ 51.50 (-25%)
๐ด $ON 68.70 โก๏ธ 58.60 (-15%)
๐ด $AMD 125.50 โก๏ธ 106.50 (-15%)
๐ด $NVDA 289.50โก๏ธ 263 (-9%)
My retirement accounts with day trading restrictions have outperformed my margin trading account over the last 2 years.
Mathematically evidence that less trading leads to better results. Yet, overtrading is still what I struggle with the most.
"The thing about trading, is that you can follow the rules perfectly for 99 trades in a row and have huge success.
But if on that 100th trade you violate one or more rules with a big position you can unravel all your previous success in no time at all."
-
@chasharris1025
๐ A look at how the leaders acted:
๐ 4/12 Up on the day
๐ $CELH $ENPH new 52 week highs
๐ Shakeout & strong close $AEHR $GFS $PI
๐ This is the best the leaders have looked IMO.
Seeing potential in a setup is one skill. Squeezing all the value out of one is another. Caught $SMCI with size to start the year but sold too early which continues to be my
#1
weakness as a trader. Just a perfect chart.
$SMCI Largest position currently and weekly chart shows big potential. Not many stocks can have monstrous rallies like SMCI did and correct less than 40% (See $AMR)
$NVDA to me is still the leader in the group (acting well) but $SMCI
#2
with higher ADR.
Something I've learned from
@OliverKell_
- Leading stocks trade ahead of the indexes in their price cycle. The stocks having wedge pops while the indexes put in their reversal extensions should be the focus.
Now's the time to put in the work! What're the leading stocks/themes?
๐ A look at how the leaders acted 1/16/24:
โ๏ธ 7/12 Up on the day
๐ $AMD $ANET $MOD $NTNX $NVDA New Highs
๐ $CCJ $SMCI Reverse early gains
๐ค Might replace $PDD, but with what?
$AMD $AMR $ANF $ANET $CCJ $CRWD $MOD $NTNX $NVDA $PDD $PINS $SMCI
๐ A look at how the leaders acted 5/24/24:
๐ฅ 9/9 Up on the day
๐ $CAVA $FSLR $NVDA $ONON $TMDX $VRT New Highs!
๐ Market bounces back strong after yesterday
๐ Have a great long weekend!
$CAVA $CRS $FSLR $FUTU $MSTR $NVDA $ONON $TMDX $VRT
๐ A look at how the leaders acted 6/4/24:
โ๏ธ 5/9 Up on the day
๐ $HIMS $NVDA New Closing Highs!
๐ค $ANF $FSLR $TMDX Getting Tight
โ ๏ธ $CLS Close under 20EMA
$ANF $CAVA $CRS $FSLR $HIMS $NVDA $ONON $TMDX $ZIM
Don't buy breakouts in a bear market!
Clear pivots will attract more eyes. More eyes = more liquidity that institutions use to exit positions without moving the price.
Watch the full Trading Audit episode with
@traderCharlieM
๐
โ ๏ธ It's astonishing how quickly the leaders broke down.
You can't just buy the stocks showing relative strength & hope things work out. This is a market that's out to hurt you the second you allow a loss to build.
In 3 week:
$CELH -19%
$CPRX -30%
$LNTH -24%
$TMDX -30%
$VRT a few days away from my favorite setup - HL50Pop.
Undercut the low of the pullback, rallied through the downtrend line & had it's first test of the 50SMA. Watching for a higher low pivot to form for the entry. Leader reseting in a short base.
I will never live down my girlfriend telling me to buy $ELF at $40, stating clearly "Nick, you just don't understand."
$ELF +17% today, +240% since her comment
$TTD Monthly chart. Huge base = Huge potential
Earnings/Sales growth estimates could be better though. Only thing keeping this from being a top idea & a more concentrated position.
๐ A look at how the leaders acted 11/24/23:
๐ 8/12 Up on the day
๐ $CRWD $DKNG $LRN $UBER New Highs
๐ค $ANF $AVGO $DKNG Tightening Up
๐ $DUOL On Focus Next Week
$ANF $AVGO $CCJ $CRWD $DKNG $DUOL $LRN $MSFT $NTNX $PLTR $TNK $UBER
$CELH New Highs
$SWAV New Highs
$LNTH Strong action after pullback
$ENPH constructive bounce off 21EMA
$TH Breakout squatted, still >$14
Biotech setups working
Indexes can do what they want. That's not what I trade. The leading stocks and quality setups are still working.
๐ A look at how the leaders acted:
๐ 2/12 Up on the day
๐ฅ $DGII $FSLR new 52 week highs
๐ท $AEHR $ENPH $GFS $ON $PI constructive action
โ ๏ธ $RYTM loses 50SMA
Don't buy stocks that show relative strength on a day where market breadth is deteriorating
The more losing trades pile up in the market the odds that the leading stock fails increases, as people sell winners to pay for losers.
Find RS and execute on days the market finds a bid
$IREN one of the most powerful setups is the gap up back through the 20EMA AFTER the first close underneath that MA, especially if the pullback happens on lighter volume. 23% in 2 days, nice move.
๐ 29 Trading Lessons I've learned for my 29th birthday! ๐
1) Trading is a game of probability and risk management.
2) Don't argue with the market, you're wrong.
3) Time in the market is risky. Be out of the market as much as possible.
๐ A look at how the leaders acted 6/11/24:
๐ช 7/9 Up on the day
๐ $AAPL $FSLR $HIMS $ONON New Highs!
๐จ $COIN $SG $CAVA Hammer Candles Everywhere
๐ $CRS Out $AAPL In
$AAPL $ANF $CAVA $COIN $FSLR $HIMS $NVDA $ONON $SG
Leaders have been falling apart at an accelerating rate. Solar really the only leading group left & many of these charts look 1 day away from rolling over.
$ZIM $SBLK $EGLE $GNK Four shipping stocks setting up while there are others within the group breaking into new highs ( $GOGL). Let's see if this group can get moving here.
#IBDPartner
๐ A look at how the leaders acted:
๐ฅ 11/12 Up on the day
โ๏ธ $CELH starting to trade consistently over 50SMA
๐ $AEHR $PI $SMCI new highs & $FSLR very close
๐ค $EXTR $ON $RYTM tightening
๐ $SGML selloff stopped at 50SMA
$SMCI - All eyes were on this name with the Nasdaq inclusion and gap up today so the weakness/shakeout makes sense. Watching this for an undercut of the 20EMA/gap up zone to the 50SMA as a tight risk entry that I'd size up on (exactly like last base).
๐ A look at how the leaders acted 8/9/24:
๐ฅ 6/6 Up on the day
๐ $MELI $PLTR $SN New Closing Highs!
๐ช Market rally continues after yesterday's gap & go
๐ค $RKT $ZETA Tightening up near highs
$MELI $PLTR $RKT $SN $SPOT $ZETA
Promised my wife Iโd take a break from the market while in Spainโฆ. This wasnโt my fault.
Stock Market bar in Madrid where drink prices change based on demand.
$QQQ - Today reminds me of 2/24/22 where after a big selloff we started with a massive gap down, when Russia invaded Ukraine, then ripped 7% from the open. We quickly retested those lows, bounced then eventually rolled over further.
Today's a great start, but stay flexible.
Stocks that seemed to beloved to fall as hard as they did:
$AMD -67%
$META -65%
$NVDA -68%
$NFLX -76%
By studying past market leaders cycle, you know it happens. But watching this for the first time in real time is something else.
๐ A look at how the leaders acted 5/17/24:
๐ 3/9 Up on the day
๐ $FUTU $ONON $TMDX New Highs!
๐ค $APP $CAVA $CVNA $CRS Tightening up!
๐ $TOST Out, $ONON in per my wife's suggestions
^ she nailed $ELF '22 and $ANF '23
$APP $CAVA $CRS $CVNA $FUTU $NVDA $ONON $TMDX $VRT
DV - Market Trend is an awesome new indicator on
@Deepvue
that let's you color the background of charts whether the price of an index is above/below a rising/declining MA of your choice.
This helps you review past leaders and honestly decide whether you would have bought or not!
$MSFT - Outside of $NVDA's weekly chart that just broke out, this looks the best to me. $GOOGL looking nice as well.
If institutions can make money on their main names YTD then they'll have more risk appetite to trade the higher beta names.
๐ A look at how the leaders acted 6/5/24:
๐ฅ 9/9 Up on the day
๐ $HIMS $NVDA $ZIM New Highs!
๐ Leaders held up great while markets pulled back
๐ค Might replace $TMDX with $SG
$ANF $CAVA $CRS $FSLR $HIMS $NVDA $ONON $TMDX $ZIM
You'll make more money trading poorly in a strong environment than trading strong in a poor environment.
Poor environments punish ANY mistake you make.
๐ A look at how the leaders acted 8/9/23:
๐ 4/12 Up on the day
๐ $CELH $EXTR $FRSH New Closing Highs
โ ๏ธ $AVGO $DKNG $NVDA $UBER on their 50SMA
๐ฅ $AEHR $EXTR $ELF Relative Strength
๐ $PLTR $SMCI $SYM Out
๐ $ANF $CELH $FRSH In
๐ A look at how the leaders acted 12/18/23:
๐ 8/12 Up on the day
๐ $ANF $AVGO $COIN $CRWD $DUOL $NET $NTNX $PINS New Highs
๐ค $AMD $ESTC $PDD $UBER Tightening
$AMD $ANF $AVGO $COIN $CRWD $DUOL $ESTC $NET $NTNX $PDD $PINS $UBER
โ ๏ธ NAAIM numbers explode into triple digits right as $QQQ sells through and closes under the 20EMA.
Each time this metric has hit over 95% we've had a pullback the following week. Maybe next one will be a correction to the 50 day SMA.
NAAIM numbers continue to climb back, but not at the level (95+) that has preceded a pullback week.
Big day from $QQQ and $SPY to get back to highs and closing overhead gap downs today.
๐ A look at how the leaders acted 11/30/23:
โ๏ธ 7/12 Up on the day
๐ $CCJ $CRWD $LRN $NTNX $PDD $PINS New Highs
๐ค $DKNG getting tight after shakeout
๐ Leaders acting better than indexes
$ANF $CCJ $COIN $CRWD $DKNG $DUOL $LRN $MSFT $NTNX $PDD $PINS $UBER
๐ A look at how the leaders acted 1/8/24:
๐ฅ 11/12 Up on the day
๐ $ANET $ANF $NVDA New Highs
๐ $CELH +1.5% after being down 5.7%
๐ป Bad day to be a bear
๐ $UBER Out, $ANET in
$AMD $ANF $AVGO $CELH $COIN $CRWD $DUOL $NET $NTNX $PDD $PINS $UBER
๐ A look at how the leaders acted 12/1/23:
๐ 9/12 Up on the day
๐ $CCJ $COIN $ESTC $LRN $PINS $UBER New Highs
๐ฅ $ESTC +37% on HVE
๐ $MSFT Out, $ESTC In
$ANF $CCJ $COIN $CRWD $DKNG $DUOL $ESTC $LRN $NTNX $PDD $PINS $UBER
Any names I should add/replace this weekend?
๐ A look at how the leaders acted:
๐ 10/12 Up on the day
๐ 8/12 Now back above 20SMAs
๐ $TMDX New Highs!
๐ $ELF $ARHS shaping up nicely
Seems like I am overweight semiconductors. Which stock would you drop?
$ACLS $AEHR $ALGM $GFS $PI