Stock Trading Connecting Knowledge and Execution

Zeus Lee talks on stock trading entitled Mind the Gap: Gap between knowledge and Execution

Shares 4 types of trader/ Stages of trader progression
Quadrant 1: low win rate, low reward risk ratio
Quadrant 2: High win rate low reward risk ratio
Quadrant 3: Low win rate, high reward risk ratio
Quadrant 4: High win rate, high reward risk ratio

The highly regarded trader is the Photoshopped trader
- deep understanding of his/her technicals
- proper management of risk
- application of winning intangibles

Confidence is when you know you are going to win the war and get out alive whatever the outcome of a thousand battles.

The Knowledge
understanding Trend Structure and the Momentum Line

Dow Theory (limited on what the theory says about price)
When you are on an uptrend, the price structure is you have high, low, higher low, higher high
When you are on a downtrend, the price structure is high, low, higher low, higher high
When the trend is sideways, there is ranged high and low

Price Patterns
Ascending/ Descending triangles
Head and Shoulder Pattern
Cup and Handle Pattern
Double Bottom/ Double Tops

Zeus Lee says: "There's always someone who draws the chart"

The Practice
4 Easy Steps

• Backtesting and Simulation
• backtesting: find out the winning probability of a setup by applying a specific set of rules and parameters for buy and sell actions on historical data
• actually test your skill in trading in order for you to gain experience
• for simulation, you can try out stock chart games
• Paper trades
• same with simulations but with real market data
• build your Playbook, a standard procedure when dealing with the markets
• Low volume trades
• with actual scenario, real risk
• know your profile
• analyze your emotions
• Full blown profitable trader

Stock Chart Games
Chart Mantra: no sign in, play as a guest. has indicators and even a learning module. has stop loss options and has a walkthrough on how to trade stocks
StockChartGuru to familiarize with candlestick patterns; basic and does not require you to log in.
ChartGame is also another form of stock trading game for pattern recognition but this needs log in but has better interface and more options. My recommendation

Stock Trading Planning

Money Growers PH shares how to plan your trades in stock trading

• set entry point
• set sell point
• set stop loss or stop profit
• risk computation (risk reward ratio of 2:1)
• portfolio allocation
• potential reward

He first draws a line on the chart for the lines of support and lines of resistance. Buy on support, sell on resistance

Chris Cruz shares his reasons for buying

• Uptrend
• Old resistance becomes support
• Fibonacci 23.5%
• MA 20 support

Abraham Avila Jr of Abs Trading shares

What's a trading plan?

Trading plan helps you to organize your thoughts and takes the emotion of the stock trading

Structure of set of guidelines, define your trading activity, and what and when and how to trade

Why create a trading plan?

manages your risk better

streamline decision making

helps you enter and exit based on strategy and not emotion

maintain disciple

How to develop a trading plan?

Answer the 7 questions

1. what markets are you trading?

- US market? Futures? Crypto currency? Commodities? Stocks or Equities?

- mastery or focus; pick one market then once mastered that's when you pick another. There is also a saying not to limit to once income vehicle

2. what time frame?

- as newbie, focus on one thing. Pick on the set-up most suitable to you. Position trading? Momentum trading?

- as a newbie, master daily candle or daily time frame for now

3. how much are you risking one each trade?

- risk first before profit; how much are you willing to loss to lose?

- started with 25,000; newbies advised to risk at 5 digit amount to as much as 100,000

- biggest lost placed at 2,000

4. What are the conditions of your trading set-up?

- what are the criteria to enter a stock

5. How will you enter your trade?

- breakout? retracement? pullback?

6. Where is your stop loss?

- 5%? Break of resistance?

7. Where is your profit target?

What markets are you trading?

PSE Market capitalization

Blue chip (top 10 companies): Investors; mabagal ang returns

2nd liners (good fundamentals): Investors/ Traders;

3rd liners (Basura stocks): Traders

What is your time frame

Position trader:

- look at big picture--weekly

- Entry/ Exit--daily

Swing trader:

- look at big picture--daily

- Entry/Exit--intraday (minute chart/5 or 15 

Day trader

- Entry/Exit: intraday

How much as you risking on each trade?

Risk should no more than -1% of total portfolio per trade e.g. 100K portfolio lose only 1K

Position sizing and allocation. Avoid buying a lot of varied stocks with low volume.

Buy 8,000 per share to save on transaction fees

Risk Reward ratio 1:2 or better

What are the conditions of your trading setup? Parameters

downtrend? range? uptrend?

Range trend better for experienced trader; buy on support sell on resistance

Uptrend: you just enjoy the ride; recommended (trend or swing) for newbies

Downtrend: avoid for newbies; may be done by experienced traders with success

If price > 20 MA >50 MA > 100 MA then the trend is bullish; AOTS by ZeeFreaks

How will you enter your trade? Triggers

buy on support, sell on resistance

buy on breakout: recommended

buy on retracement

if trend is bullish, then identify the resistance where price could breakout to

if price break the resistance at near end of day, enter an allocation 50% max of total accounts

Where is your stop loss?

If price return back below the previous resistance or reached -3% to -5% loss then cut loss

Where is your profit target?

If price snaps the 20 MA, then take profit

Sample Trading Plan

Trade setup: breakout play

Trade objective: trend following

Primary Criteria

- prior consolidation

- breakout of resistance of the consolidation

- volume spike

Secondary criteria

- longest range in the past 10 days or 2 weeks

- new 2 month price high

- price closed above the upper 50% of the day's range or better

Indicators

- AOTS

- RSI 71

- MACD crossover

Abs Trading checklist for Breakout Play (old study)

AOTS
Breakout of resistance

Supply and demand

Prior consolidation

Longest range in the past 10 days

Price closed above pivot point of the day's range 50%+

RSI above 70

Stock Trader's Tool and Set-up

ZF shares
On trading tools commonly used:

• Moving Averages (MAs), 
• Darvas Box Method, 
• Fibonacci 
• RSI (Relative Strength Index)

On buying and timing

• buy in tranches - 3 tranches to be exact : Before, During, and After breakout point.The tranches can be done in weeks, several days or all in one day. 
• The safest to buy is during the matching or run-off at 3:15-3:20 PM since at that point, the possibility of a whipsaw is close to none.
• If you're an active trader, probably 2-5 times a week. 
• If you like to diversify and do low volume trades, then you can do 5 trades a week. 
• A Trend follower can trade once every month or even 2 months

Trend Following and Darvas

On a personal note, after learning about technical analysis, I have purge my stock to let go of the old mindset and apply the new effective system.

Time for execution. Practice and practice until mastery is attained. It will be "Plan. Execute. Reflect"

I decided to shift to reading the blog of another successful trader who has the setup I prefer: part-time and trend following. I got into that conclusion after I read about how much portfolio you should have to earn comfortable. Small trades for now when I haven't reached that desired portfolio.

It starts with a post on the career of Nicholas Darvas. He was a dance foremost then trader second. He was dancing all over the world when he earned $2 million. But his quotable quote includes: " I am the captain of my ship." And goes on to share who he relentlessly study until he got is own style.

Different trading styles and styles, Trading 212 shares on chart time frames

• for trend following: daily >> weekly >>3 to 6 months; low maintenance
• for breakout trader: 
• for swing trader: 3 every 3-4 hours
• for day trader: 10-15 mins char; requires more attention; high frequency trade

ZF shares that trend following

• easy to learn and master
• does not require a lot of indicators
• uses mainly 20/50/100 MA

Elements of Trend Following as derived from Ed Seykota

• initiation
• holding 
• liquidation

Pitfalls of Trend Following as shared by Kay Sebastian; she begins that it is not for everyone

• initiation
• good periods of the market has little movement and may bore trader
• never getting the earliest entry
• goal of trend following is to enter the trend not finding the lowest of lows
• holding
• getting stuck in consolidation; other traders like momentum are gaining more
• hanging on to large profits; when your profits, greed creeps in
• liquidation
• cannot sell at the highest level

Key to trend following

• asymmetric nature of trading; upside is way higher than downside
• trend followers manage their downside through position sizing and tight stop loss but trend follows do not set target prices

Fibonacci and Breakouts

Yggrasil shares how he spent 10-15 hours a day trying to learn stock trading. I have the same story. I am learning from the sidelines. Learning from the free stuff and then I got hold of the Blueprint. It has enlightened me greatly of the ways of stock trading.

ZF shares on the interpretation of Fibonacci retracements

• as long as FIBO is 38.% and above, bull territory (more money)
• between 38-50 is bullish bias
• between 61-50 is bearish territory: dumping or accumulating time
• 61.8-76.4% is last chance area; possible bounce play
• below 76.4% is death zone

Rayner Teo shares how to trade on breakout

• breakout with buildup: buildup he means a period of sideways trend
• higher lows into resistance or ascending triangle on trendlines (price going up)
• lower highs into support of descending triangles on trendlines (price going down)
• re-test where he illustrates when the previous support because the new resistance

Trading 212 shares on how to trade on breakout

• breakout means price moves and closes ABOVE resistance levels ad BELOW support levels
• trade range: support + resistance levels
• enter on actual breakout
• pre-set level before the breakout at previous high
• enter when candle closes above the trade range
• false breakout: when price breaks support and resistance and return back to trading range

Here is tutorial on trading retracements by Trading 212

Stop Signs and End of Trails

This post continues on how to set trail stops and when to sell. The aim of which is to avoid loss.

Rayner Teo, a Singaporean independent trader, shares on 5 stop loss techniques

• moving average: exit your position when price closes below 20 SMA
• martket structure: exit when swing low is hit
• percentage: exit with 10% change in  high is hit
• average true range: 5 ATR from the lows; slash chandelier stop
• Previous candle: trail based on the previous candle high or low

MoneyGrowers shares how to set stop loss; it is based on trade objective: momentum or bounce

• for momentum play, place stop loss at confluence of support (read below)
• bearish engulfing candle signals potential sell; the opposite bullish engulfing candle signals potential buy 
• if prices glide in 20 MA, momentum might build up

RKay shares places to place an stop loss

• recent swing high
• recent swing low

ZF shares

• During parabolic runs, hold until candle goes below the previous days's closing price
• Buy on Breakout and Set Trailing Stops
• 3rd day red candle with gap (abadoned baby sign)
• FastK at buy levels with RSI at 53 *on sample chart analysis
• It is also common to set trail stop at previous green candle or moving average or retracement

RKay shares about confluence Confluence Trading Price Action Techniques

• Confluence:  two or more levels  come together at a certain point on your chart 
• It can be a a trendline coming together at at 61.8% or 50% fibonacci level
• it can be a support level meeting a rising trendline
• it can be a Fibonacci level meeting a support level where price meet

RKay shares further that there are 4 areas or levels confluence trading can happen

1. support levels
2. resistance levels
3. fibonacci levels
4. trendlines

Sandbagging, Money Management for Trader

This post is for trend followers and how to manage their money for trades. There is another article on portfolio allocation in an earlier post.

This suggestion on how much money to place per trade is made in comparison to the easy investment plan or regular subscription plan offered by certain broker. In the easy investment plan, you put in a specified amount of money to buy stocks of a certain company on a designated date. In this new sandbagging technique, ZF suggest you have four tranches/slices or periods to invest more in stocks. Two or three tranches are also acceptable but one tranche is risky.

Once you decided on the number of tranche, you decide to place your money

• Equal tranche: first half on the first breakout, and the 2nd half on the next
• Pyramid tranche: lower the price, the bigger the volume or budget

ZF continues: 

The inverse pyramid is usually done when selling. The higher the prices go, the bigger the volume

Alignments, Strikes and Parallel Universe

There are important conditions to remember and they also have creative terms

• Zeus strike (ZS)
•  price pierces or is above 100 MA; 
• signals trend reveral
• also known as death cross?
•  Inverse Zeus Strike (iZS)
• price is below the 100 MA
• signals downtrend
• Alignment of the star (AOTS)
• where price is above 20/50/10 MA and
• 20MA > 50MA > 100MA
• signals uptrend; but not completely a buy signal as it also needs other trigger points
• Reverse Alignment or inverted AOTS
• 100 MA > 50 MA > 20 MA
• signal downtrend
• Parallel Universe Alignment (PUA)
• ZS should happen or should have happened in the daily + ZS on weekly chart; 
• signals the beginning of a major trend shift from down to up,
   or up to down

Mixing Trading and Traveling

The sun has dawned today. As I continue with self-studying the system of a successful trader, I finally came across an outline of the trading lessons.

Anyway, a question hit me if you need to be on the watch every time the market opens to watch your stock?

ZF shares how you can several vacations or hold a day job and still do well on the stock market

1. Create a trading plan
• are you for the small swings or big waves?
• what are your entry price, cut loss and trailing stops?
• do you have time stops when the stock you are watching isn't moving?
2. Plan ahead
• requirements of line trading is a phone/laptop and Internet connection (as most have an online broker) and so if you go to places with no Internet access then do not trade
3. Set triggers and alerts
• install a mobile app that sends you an SMS once your trigger and cut loss points are hit. Then at the time you have access to the Internet/ laptop can you post an Off-Hours (OH) order for the next trading day
• ZF used PSE Watch for this. There is also the Investagram InvestaWatcher. It's a subscription which alerts you via SMS for triggers and FB messenger for Dividend reports. It comes with a monthly subscription rate of P167 to P267 per month but paid yearly on subscribing.

Warrior Trading shares how he sets up his traveling trading station (plus vlogging gadgets?)

• 2 Lenovo gaming laptop: fast hardware; 1 laptop for all trading; 1 laptop for streaming/ chatrooms/ Youtube
• 2 Asus USB monitor
• HDMI mini monitor
• Capture card for his online streaming (HDMI port)
• Logitech Headset
• Logitech webcam 1080

Madaz Trader also shares his travel trading station

• Asus gaming laptop
• 2 Asus USB monitor; monitor stands to hold
• Logitech USB mouse
• USB Expansion hub
• Travel adapter
• prefers ethernet cable
• Logitech mechanical keyboard
• Blue Yeti microphone (if traveling locally)

You can have a minimalist traveling trading setup:

• laptop
• 1 extra USB monitor
• Internet connection

Bounce Balls and Stock Trading

Bounce play or buy a bounce is buying/ selling stocks to profit from temporary price reversal during price corrections. These are short term trades. Bounce play does not affect the direction of the larger trend.

David Jones of Trading 212 tells about Fibonacci retracements

Lifted from Investopedia

• Traders who "buy a bounce" attempt to profit from a short-term correction or "bounce" off of the identified support.

Steps shared by MoneyGrowers

• find a beaten up stock
• plot the Fibonacci
• let the market do its work
• choose your tools: there are other tools used for bounce plays

Metatrader 4.0 shares how to correctly draw the Fibonacci Retracement

• the top of a downtrend or the bottom of an uptrend is the starting point

Trading 212 shares show to trade Fibonacci Retracement

When to enter in upward trend? After price goes down then price increases and reaches 50% and this goes on in the next 2 days, buy on 3rd day

When to enter in downward trend? When price  goes up to 50%, buy.

Exit strategy

• Stop loss
• upward trend: place stop loss just below support
• downward trend: place stop loss just above resistance
• Target profit: using Fibonacci extension

Notes from ZF

• 3rd day rule:  take profit on the 3rd day of a stock's ascent or buy a stock on its 3rd day decline
• 61.8% and 76.4% Retracements would be the ideal crash-point for pickup
• As long as 38% Fibo holds, expect your money to make MORE money.
• The best candles to watch for when playing the bounce are
•  the abandoned baby:  Doji on the second day whose shadows gap above the previous day’s upper shadow
•  the hammer: lower shadow of this candlestick is at least twice as long as the body
• and some variations of dojis

Shapes of Boxes and Darvas

Continuing with my self-study of stock trading, I came across Darvas Box Theory

Lifted from Investopedia

• Darvas' trading technique involves buying into stocks that are trading at new highs 
• The strategy traces its origins to 1956, when Nicolas Darvas turned a $10,000 investment into $2 million over an 18-month period using this theory.  
• type of momentum strategy
• to determine when to enter and exit the market 
• If the price breaks out of the Darvas box, the investor takes this as a sign of a breakout

MoneyGrowers advise to use Dravas Box in  stocks with a.) 52 week high and b.) high volume.
How to plot: 1. highest point, check next forward 3 candles if this point is not superseded; this will be the top border; then 2. mark the lowest point in the next 3 candles.  The ends of the candles measured may be body to body or wick to wick.

Notes:

• Once the price pierces the upper border by 1-2% then it is a buy signal
• Stop loss price is the lower border
• Once the lower border is pierced, the lower border is plotted first before the top border
• After a series of making boxes, you have a price range

ZF wrote

• successful breakouts are usually in a form of solid long green candles with high volume
• break from the border sends the price flying or falling into the border's direction
• if the price touches the border but does not break it, the border is said to be tried and tested

Trading is a Jungle and Trading Setup Up

This must be the third time I will say I got all the more puzzled about stock trading; I was self studying the system of a successful stock trader. Again, the flaw of not having a mentor.

On reading the blog posts, I realized that reading it from the earlier post to the latest is NOT the way to go. One post may have a more detailed explanation later on in another blog post or that there is a difficult concept might be introduced early and the explanation is on a later post. I decided to approach it in another way through labels or tags.

ZF said there are two types of play

• Momentum
• Sell on Target And Trailing Stop
• Bounce
• Sell on Resistance

Technical Analysis versus Fundamental Analysis

Lifted from Investopedia

• technical analysis
• looks at the price movement of a security and uses this data to predict future price movements
• begin their analysis with charts 
• short term approach 

• Fundamental analysis
• instead looks at economic and financial factors that influence a business
• start with a company’s financial statements 
•  long-term approach to investing 

In a Twitter twit, ZF posted the classic trend following starter setup

• 20/50/100 SMA
• MACD
• RSI 

Cookies Laws and Rules of Trading

I got stuck on a concept on stock trading I did not understand again. This is the flaw of self-studying, you may go on a zigzag pattern trying to learn the concept. Learning is accelerated if you have a mentor. And so when times like this strikes, I go watch MoneyGrowers YouTube for awhile before getting back to studying.

 On the side, I am thinking about getting into online marketing instead instead of stock trading. And with this I recalled my earlier days of Blogspot ( which is now Blogger). I did several trial and error of earning from blogging using Blogspot + Adsense. No good result. While I was starting to learn about blogging, I was slowly introduced to Wordpress and continue to use it until this day. I set aside Adsense for the longest time.

 And after forgetting about my blog for a long while, I was greeted with the new laws on cookies notification when I logged in.   I decided to purge all those other blogs and retained the very first blog for sentimental reasons.

Back to stock trading, there are questions (as asked by Yggdrasil)

Why do you enter trade?
What made you buy or sell a position?
Is it because (insert name here) says so?
How can you win a battle when you don’t even know what’s your Target Price or your Stop Loss?

Answers to those questions in the coming posts.

And now the cardinal rules of trading as shared by Yggdrasil

Do not engage without a plan, unless you plan to lose.Do not enter without a proper setup.Do not enter a stock without a chart.Do not be greedy, Take profits whenever happy.Do not listen to noise or hype, It will blur your decisions.Do not lose what you can’t afford to lose.Do not trade and learn nothing.Do not trade when in doubt.Do not hold a stock that doesn’t go with your bias.Do not lose greater than what you gain.Do not trade if risk outweighs the reward.Do not chase a stock. be prepared to catch the next.Do not break a rule, unless winning is absolute. 

Skipping Lessons and Moving Averages

 

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I am self-studying a system to succeed at stock trading. I have zero knowledge in finance, banking or business. But I have seen a lot of people in various walks of life doing well at stock market so I decided to try it for myself. As I was reading to through the blog posts, some concepts are still hard to grasps for me. At first, I thought I would tackle them head on like MACD but it just made me more confused and I can't seem to move forward. This takes me back to the post of Yggdrasil where he quickly transitioned to a master chartist in a week. It begins with a gratitude to a mentor with a portfolio screenshot  of gains. Then 7 days later, he presented a complex stock chart analysis. I want to learn and be like him, but getting it all in in 7 days, I am not sure. So for now, let's start with moving averages. Lifted from Investopedia

simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks or any time period the trader chooses. Moving average crossovers are a popular strategy for both entries and exits. Common moving average lengths are 10, 20, 50, 100 and 200. When the shorter-term MA crosses above the longer-term MA, it's a buy signal, as it indicates that the trend is shifting up. This is known as a "golden cross." when the shorter-term MA crosses below the longer-term MA, it's a sell signal, as it indicates that the trend is shifting down. This is known as a "dead/death cross."

ZeeFreaks (ZF) would describe moving averages as linemen. He has other terms for the golden cross and dead cross. And I quote ZF

When your "linemen" are above the candles, the trend is down.

When your "linemen" are below the candles, the trend is up.

In Patintero, once a lineman catches you, you're out! Period.

In stocks, I can choose which lineman tells me when I'm out.

Here is a video from Trading 212 to illustrate about moving averages

And here is part two of moving averages which illustrates that when a shorter-term MA crosses above the longer-term MA, it's a buy signal and when the shorter-term MA crosses below the longer-term MA, it's a sell signal

Questions and Answers from ZF

•  When can you use moving averages in stock trading?
  • Moving averages can be used with Blue Chips, some 2nd Liners, but rarely on 3rd Liners [more about blue chips, 2nd liners and 3rd liner below]
• What SMA numbers do you use?
  • The simple moving averages I use  20/50/100 MAs; But sometimes I use 30/60/90 For Blue Chips.
• Which linemen or SMA tells you sell/quit that stock?
  • For blue chips, I use 90MA. But usually, I'm already out once 50 MA snaps
• What are Blue chips, 2nd liners etc?
  • Index stocks = Blue Chips 2nd Liners = Good fundamentals But Lacks Liquidity 3rd Liners = Good/Bad Fundamentals. Very Low Liquidity
  • Yue Kai commented to checl PSE EDGE, if the market capital is below 10 billion and below consider that company as 3rd liner
  • Liquidity means you can buy and sell shares easily, no need to wait for a long time for your buy or sell to match
• Is it better use DAILY or WEEKLY movements?
  • Daily is better

Original post: Moving Averages and Patintero

Full Time Stock Trading Needs Dedication

 

Photo by Scott Webb on Pexels.com 

 Profiting from stock trading is just like any profession, it takes time and lots of effort. Sirius Lee here shared that technical analysis can be learned by anyone with zero knowledge and dedication. He has shared his success too on how he purged stocks to make way for new learning. He cut losses and had almost all gains. His post inspired me to take on trading, that I can learn it despite not having a degree in finance or business. Initially his blog was in Tagalog then succeeding posts were in English. I feel it would be better in English for SEO purposes. Sirius Lee mentioned he started reading about ZeeFreaks January 2015 and when full time trading October 2015 after finishing ZF + Kidlat formal course. His initial reason to shift to full time trading was

ticket to free myself from corporate slavery

Stock Gamit here shares that life felt like

works on weekdays like zombies and laugh like clowns on weekends

And he ventured into several other ways to make money like freelancing, pay-per-click, multilevel marketing (MLM) before coming across stock trading. Self education on stock trading felt like

portfolio grew not with my gains rather by adding funds into my account... and kept throwing my cards blindly hoping for a lucky strike...

Stock gambit had a realization, stock trading

is NOT to buy cheap and let my money sleep BUT rather wait sufficiently, trade efficiently...Failure is an outcome of a poor execution

ZeeFreaks advised full time stock trading when,

1. Disciple
   • can you cut your losses?
   • can you take a loss without being too emotional?
   • do you have a trading journal?
   • do you have a routine in checking charts and doing analysis?
2. Capital
   • do you have 300-500K in your portfolio?
   • can you achieve 10% gain per month in your portfolio?
3. Specialty and Identify
   • do you have a bread and butter set up?
   • do you know what kind of trader are you, swing trader or trend following?

Identifying Trader Personality and Portfolio

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 There are 2 types of investor,
1. Swing trader: big gain, heavy risks
2. Trend following: most followed strategy

 A robot from Alpha Cantauri shares information regarding his ideas on each trader techniques

For melee: unplanned attacks and are the result of one stock rising above the rest, forcing you to drop laggard stocks to focus on it in full force

For sleeper cells: dormant stock that may earn big time at the right time. Waiting game.

On portfolios, ZF shares

he has 3 portfolio and every 3 or 6 months profits are withdrawn and the port gets reset to 2.0 million. If within the 6 months no profits have been made, no additional funds will be added into the trading port

ZF talks about portfolio allocation like an RPG game based on the level of risk and rewards attained. Based on this story of portfolio, it seems ZF has 4 portfolios

Main portfolio which he calls Knight
Capital Preservation
75% divided into 3 stocks equally
25% cash
Yields the highest rewards with the least stress
But extreme discipline

Second Portfolio which he call Elven Archer

100% of portfolio is in cash or tsupita

strong mental capacity is required

Third portfolio which  he calls Swordman: balanced
Trend following 50%
Sleeper 25%
Cash 25%
This is the class of most traders

Fourth portfolio which he calls Mage
Time is money
All stocks are sleeper
Specialty is dividends

With this game-like ecology, Yggdrasil makes a creative DOTA-like character to personalities in stock trader along with creative RPG skills. It ends with a funny note

How much capital does it take to live off from earning from stock trading?
It depends on your lifestyle. ZF shares the cost of living from stock trading

Identifying Chart Trends

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Trends tell about the direction of the stock, it will signal traders when to buy and when to sell.

 There are 3 trends
1. Uptrend
2. Sideways
3. Downtrend

 And to to identify these trend it may be done using
1. Channel line
2. Moving Averages: same say this is the easiest to learn
3. Price action: some say this is the best indicator

 A trader Ninuni Nunu wrote about it wonderfully.

Stock Trading Lessons Shared by Superperforming Traders

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 ZeeFreak inspired me to try stock trading. It was something I want to do but need mentorship. His time is precious and has a stringent mentee selection. But he also gives slots for free
 Here are trading lesson he shares:

• On Cutting Losses: Don't let a loss reach -4% Cut before it reaches that level.
• On Taking Profits: There are no Target Prices, Only Trailing Stops.
• On Trading A stock: Trade with bias. If a stock does not move according to your bias, Sell.
• I also get this question a lot, So i'll just Include it here: "What is my average holding period?" 4 Trading days. Or until a stock's uptrend snaps.

MoneyGrowers is a mentee of ZeeFreak who turned mentor. He is also known as Akio and has a YouTube channel. Nina is also part of ZeeFreak Tribe. Her story is that of stock trading as a side hustle. She has a regular job as nurse. Yes, the name of her blog takes on a name of a Star War freighter. Her start on stock trading needs a separate post too.

After all, the universe only allows things to happen for a purpose Here in the trading world, I set my quota to +10% overall port gain per month, or in a different perspective, +2.5% per week

Nikki San is a full time mother and part time trader. She said

trade only stock that is on Uptrend/AOTS and minimum 6 Months breakout