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#91
Open OverWise board / Reading List
Last post by Henrik Ekenberg - Jul 22, 2024, 02:33 PM- Trade Like a Stock Market Wizard by Mark Minervini
- Think and Trade Like a Champion by Mark Minervini
- Mindset Secrets for Winning by Mark Minervini
- All of the books by William O'Neil
- All of the Market Wizards books by Jack Schwager
- How to Trade in Stocks by Jesse Livermore
- Superperformance Stocks by Richard Love (if you can find it)
- How Charts Can Help You in the Market by William Jiler
- How I Made $2,000,000 Dollars in the Stock Market by Nicolas Darvas
- Momentum Masters edited by Bob Weissman
#92
Open OverWise board / Cut losses....
Last post by Henrik Ekenberg - Jul 22, 2024, 11:06 AMCutting losses is crucial in trading to prevent larger, potentially devastating financial setbacks.
This strategy ensures that losses remain manageable and do not disproportionately impact your overall portfolio. By setting limits on losses, traders can preserve capital and remain in the market longer, allowing for future opportunities to recover and achieve gains.
It's about protecting against the downside to fight another day, ensuring that no single trade can significantly harm your financial health.
This strategy ensures that losses remain manageable and do not disproportionately impact your overall portfolio. By setting limits on losses, traders can preserve capital and remain in the market longer, allowing for future opportunities to recover and achieve gains.
It's about protecting against the downside to fight another day, ensuring that no single trade can significantly harm your financial health.
#93
Open OverWise board / Add image to forum use : image...
Last post by Henrik Ekenberg - Jul 22, 2024, 09:47 AMHi,
You often need to resize the image to post it here - Max 128 kb -.
I use https://imageresizer.com/
You often need to resize the image to post it here - Max 128 kb -.
I use https://imageresizer.com/
- Select image
- Select JPG in "Save image As"
- In "Target File Size" use 128 KB
- Do resize image then save the file to your computer
#94
Open OverWise board / 20 trading acronyms along with...
Last post by Henrik Ekenberg - Jul 16, 2024, 02:23 PM- TA - Technical Analysis
- FA - Fundamental Analysis
- BMO - Before Market Close
- AMC - After Market Close
- ITM - In The Money
- OTM - Out Of The Money
- ATM - At The Money
- HOD - High Of Day
- EOD - End Of Day
- ER - Earnings Report
- BO - Breakout
- SR - Support/Resistance
- ROA - Return On Assets
- NAV - Net Asset Value
- P/E - Price-to-Earnings Ratio
- ROE - Return On Equity
- YTD - Year-To-Date
- WC - Working Capital
- ROI - Return On Investment
- BAR - Breakout And Retest
#95
Open OverWise board / Re: Welcome to the hardest gam...
Last post by Henrik Ekenberg - Jul 16, 2024, 01:57 PMThe Critical Need for Preparation in Speculation
Lawyers, doctors, engineers, and other professionals who achieve success spend anywhere from two to five years studying and preparing to practice their profession before they begin making any money.
Yet, men enter into speculation in Wall Street without any preparation. They have made no study of it whatsoever. They try to deal in something they know nothing about. Is it any wonder then that they lose?
The Pitfalls of Guesswork and Rumors
Speculators and investors who simply guess, follow tips, rumors, newspaper talk, and so-called "inside information" have no chance of ever making a success. Without a solid foundation of knowledge and strategy, they are bound to fail.
The Importance of a Well-Defined Plan
Unless they follow a well-defined plan based on Science and Supply and Demand, they are sure to lose. Success in speculation, like any profession, requires diligent study, preparation, and the application of sound principles.
Conclusion
Entering the world of speculation without proper preparation is a recipe for failure. Just as professionals spend years honing their skills before seeing any returns, aspiring traders must invest time in learning, developing a strategy, and understanding the markets. Guesswork and following the crowd will not lead to success. Only those who approach trading with the seriousness it deserves, backed by a well-defined plan, will have a chance at achieving long-term success in the markets.
Lawyers, doctors, engineers, and other professionals who achieve success spend anywhere from two to five years studying and preparing to practice their profession before they begin making any money.
Yet, men enter into speculation in Wall Street without any preparation. They have made no study of it whatsoever. They try to deal in something they know nothing about. Is it any wonder then that they lose?
The Pitfalls of Guesswork and Rumors
Speculators and investors who simply guess, follow tips, rumors, newspaper talk, and so-called "inside information" have no chance of ever making a success. Without a solid foundation of knowledge and strategy, they are bound to fail.
The Importance of a Well-Defined Plan
Unless they follow a well-defined plan based on Science and Supply and Demand, they are sure to lose. Success in speculation, like any profession, requires diligent study, preparation, and the application of sound principles.
Conclusion
Entering the world of speculation without proper preparation is a recipe for failure. Just as professionals spend years honing their skills before seeing any returns, aspiring traders must invest time in learning, developing a strategy, and understanding the markets. Guesswork and following the crowd will not lead to success. Only those who approach trading with the seriousness it deserves, backed by a well-defined plan, will have a chance at achieving long-term success in the markets.
#96
Open OverWise board / Welcome to the hardest game in...
Last post by Henrik Ekenberg - Jul 16, 2024, 01:47 PMA Sobering Reality Check: The True Nature of the Trading Game
Unfortunately, you're playing with some of the sharpest, fastest, most intelligent, well-informed, stubbornly irrational, and in many cases, unethical minds in the world.
You're up against the computer that can react faster than you. The trader who has more experience than you. The fund that has more money than you. The insider that has more information than you. The others that will misinform you. The inner voice that will do its best to undo you.
So, leave all your dreams of making quick and easy money behind.
The First Aim is Survival
Your absolute first goal is to learn how to stay in the game.
You can only do this by mapping the territory. By understanding how the enemy thinks and acts. By having a solid game plan. And by picking your battles very, very carefully.
Ready to Play?
To survive and eventually thrive in this game, you need to shed any illusions of easy money. Instead, focus on building a foundation of knowledge, discipline, and strategy. This isn't just about making trades; it's about outlasting and outthinking some of the most formidable competitors you'll ever face. Are you ready to take on the challenge with the seriousness it demands? It's time to prepare, strategize, and execute with precision. The game is on.
Unfortunately, you're playing with some of the sharpest, fastest, most intelligent, well-informed, stubbornly irrational, and in many cases, unethical minds in the world.
You're up against the computer that can react faster than you. The trader who has more experience than you. The fund that has more money than you. The insider that has more information than you. The others that will misinform you. The inner voice that will do its best to undo you.
So, leave all your dreams of making quick and easy money behind.
The First Aim is Survival
Your absolute first goal is to learn how to stay in the game.
You can only do this by mapping the territory. By understanding how the enemy thinks and acts. By having a solid game plan. And by picking your battles very, very carefully.
Ready to Play?
To survive and eventually thrive in this game, you need to shed any illusions of easy money. Instead, focus on building a foundation of knowledge, discipline, and strategy. This isn't just about making trades; it's about outlasting and outthinking some of the most formidable competitors you'll ever face. Are you ready to take on the challenge with the seriousness it demands? It's time to prepare, strategize, and execute with precision. The game is on.
#97
Open OverWise board / Jesse Livermore Quotes
Last post by Henrik Ekenberg - Jul 16, 2024, 01:26 PM- Buy rising stocks and sell falling stocks.
- Do not trade every day of every year.
- Only enter a trade after the action of the market confirms your opinion.
- Continue with trades that show you a profit, end trades that show a loss.
- End trades when it is clear that the trend you are profiting from is over.
- In any sector, trade the leading stock — the one showing the strongest trend.
- Never average losses.
- Markets are never wrong — opinions often are.
- The highest profits are made in trades that show a profit right from the start.
- As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
- Never buy a stock because it has had a big decline from its previous high.
- Don't become an involuntary investor by holding onto stocks whose price has fallen.
- Wishful thinking must be banished.
- It is much easier to watch a few stocks than many.
- Patterns repeat, because human nature hasn't changed for thousands of years.
#98
Open OverWise board / Understanding Technical
Last post by Henrik Ekenberg - Jul 16, 2024, 01:02 PM- There is absolutely no single "Holy Grail" indicator
- All indicators are lagging
- Volume and Price are the only non-lagging indications along with time
- Adding more indicators often gets you conflicting signals
- Choosing certain indicators will bias you one way or another
- Balancing them to keep it simple and manageable is the key
- Technical analysis superior than Fundamental analysis for day trading
- Know where promises and fortunes are being made.
#99
Open OverWise board / Marty Zweig's Investing Rules
Last post by Henrik Ekenberg - Jul 16, 2024, 12:39 PM- The trend is your friend, don't fight the tape.
- Let profits run, take losses quickly.
- If you buy for a reason, and that reason if discounted or is no longer valid, then sell!
- If the values don't make sense, then don't participate. (2+2=4)
- The cheap get cheaper, the dear get dearer.
- Don't fight the FED (less valid than #1).
- Every indicator eventually bites the dust.
- Adapt to change.
- Don't let your opinion of what should happen, bias your trading strategy.
- Don't blame your mistakes on the market.
- Don't play all the time.
- The market is not efficient, but is still tough to beat.
- You'll never know all the answers.
- If you can't sleep at night, reduce your positions or get out.
- Don't put too much faith in the "experts."
- Don't focus too much on short term information flows.
- Beware "New Era" thinking, i.e. it's different this time because...
#100
Open OverWise board / Trading guidelines
Last post by Henrik Ekenberg - Jul 16, 2024, 10:22 AM- Start with the weekly price chart to establish the long term trend, and then work down through the daily and hourly charts to trade in the direction of that trend. The odds are better if you are trading in the direction of the long term trend.
- In Bull Markets, the best strategy is to buy the dips. In Bear Markets, the best strategy is to sell short into each rally. Always go with the path of least resistance.
- Support and resistance levels can hold for long periods of time; the first few breakout attempts usually fail.
- The more times a support or resistance level is tested, the greater the odds that it will be broken. Old resistance can become the new support, and the old support may become the new resistance.
- Trend lines are the easiest way to measure trends by connecting higher highs or lower lows, and they must always go from left to right