Is this you?
If this is what you consider “trading”, it’s not!
Drawing on charts is a sure way to never make a dime in markets.
It just doesn't work.
At top proprietary trading firms, it isn’t uncommon for a new guy who swears by his chart patterns to be thrown a box of crayons if he starts calling out “flag breaks”.
The goal is to be trading against the chartist, not to be one!
You see, while many are doodling on charts, others are reading that filing that you thought wasn’t important and trying to connect the dots. I use Ask Edgar for this.
That PR with a thousand words below the headline, yea, good traders are actually reading it because it might just make them money!
“I trade the charts” translates to “I make no money and my savings are dwindling in the market!”
Here are some ideas to think about that will likely improve your trading.
Always use logic
Look for massive moves that just don’t make sense logically (think in terms of market cap, revenue, other financial metrics). I use Stock Analysis for my financial data.
learn to love to read (you can email me back for book recommendations)
Be curious about how stuff works
Read a lot of hedge fund letters to see what they are doing (often buying good companies at great prices or shorting good companies at very bad prices). I use Fiscal.ai to read these letters.
Look for stuff that is “broken” that you can exploit in the market
Get far less screen time and get some more sleep
Get off the desk more often
Spend a lot of time talking to rational and smart people (often, they aren’t traders, but experts in something)
Force yourself to read Market Bullets from top to bottom M-F
Look at far less charts
Use less/no leverage
Stop trying to be so perfect with timing
Focus on 1 logical and important thing to improve on monthly
The list goes on!
Cheers,
Kyle Vallans
Founder, SaveOnTrading
The best trading tech at the best prices, period!
