This Swing Trading Master Made $8 Million Dollars. 20 Rules By Alan...
Rohan Das@rohaninvestor
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Mar 31, 2024
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This Swing Trading Master Made $8 Million Dollars.
20 Rules By Alan Farley Will Make You A Master Of Swing Trading - No Exceptions!
A Thread!👇
20 Rules By Alan Farley Will Make You A Master Of Swing Trading - No Exceptions!
A Thread!👇
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Rule 1: If you have to look, it isn’t there.
Forget your college degree and trust your instincts. The best trades jump out of nowhere and create a sense of urgency. Take a deep breath, and then act quickly before the opportunity disappears.
Forget your college degree and trust your instincts. The best trades jump out of nowhere and create a sense of urgency. Take a deep breath, and then act quickly before the opportunity disappears.
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Rule 2: Price has memory.
What happened the last time a stock traded at a certain level? Chances are it will happen again. Watch the tape closely when price returns to a past battleground. The prior action can predict the future.
What happened the last time a stock traded at a certain level? Chances are it will happen again. Watch the tape closely when price returns to a past battleground. The prior action can predict the future.
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Rule 3: Profit and discomfort stand side by side.
The setup that scares you most is the one you should trade. It won't feel good until you profit. If it felt good, everyone would do it. Ancient wisdom says what feels good first may hurt later, but what feels painful at first can bring great joy eventually.
The setup that scares you most is the one you should trade. It won't feel good until you profit. If it felt good, everyone would do it. Ancient wisdom says what feels good first may hurt later, but what feels painful at first can bring great joy eventually.
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Rule 4: Stand apart from the crowd at all times.
Trade ahead, behind or contrary to the crowd. Be the first in and out of the profit door. Your job is to take their money before they take yours. Be ready to pounce on ill-advised decisions, poor judgment and bad timing. Your success depends on the misfortune of others.
Trade ahead, behind or contrary to the crowd. Be the first in and out of the profit door. Your job is to take their money before they take yours. Be ready to pounce on ill-advised decisions, poor judgment and bad timing. Your success depends on the misfortune of others.
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Rule 5: Buy the first pullback from a new high. Sell the first pullback from a new low.
Trends often test the last support/resistance before taking off. Trade with the crowd that missed the boat the first time around.
Trends often test the last support/resistance before taking off. Trade with the crowd that missed the boat the first time around.
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Rule 6: Buy at support. Sell at resistance.
Trend has only two choices upon reaching a barrier: continue forward or reverse. Get it right and start counting your money
Trend has only two choices upon reaching a barrier: continue forward or reverse. Get it right and start counting your money
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Rule 7: Manage time as efficiently as price.
Time is money in the markets. Know your holding period for every trade and watch the clock to become a market survivor.
Time is money in the markets. Know your holding period for every trade and watch the clock to become a market survivor.
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Rule 8: Control risk before seeking reward.
Wear your market chastity belt at all times. Attention to profit is a sign of immaturity, while attention to loss is a sign of experience. The markets have no intention of offering money to those who do not earn it.
Wear your market chastity belt at all times. Attention to profit is a sign of immaturity, while attention to loss is a sign of experience. The markets have no intention of offering money to those who do not earn it.
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Rule 9: Big losses rarely come without warning.
You have no one to blame but yourself. The chart told you to leave, the news told you to leave and your mother told you to leave. Learn to visualize trouble and head for safety with only a few bars of information.
You have no one to blame but yourself. The chart told you to leave, the news told you to leave and your mother told you to leave. Learn to visualize trouble and head for safety with only a few bars of information.
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Rule 10: Bulls live above the 200-day moving average while bears live below it.
Are you flying with the birds or swimming with the fishes? The 200-day moving average divides the investing world in two. Bulls and greed live above the 200-day, while bears and fear live below. Sellers eat up rallies below this line while buyers come to the rescue above it.
Are you flying with the birds or swimming with the fishes? The 200-day moving average divides the investing world in two. Bulls and greed live above the 200-day, while bears and fear live below. Sellers eat up rallies below this line while buyers come to the rescue above it.
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Rule 11: Trends rarely turn on a dime.
Reversals build slowly. Investors are as stubborn as mules and take a lot of pain before they admit defeat
Reversals build slowly. Investors are as stubborn as mules and take a lot of pain before they admit defeat
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Rule 12: See the exit door before the trade.
Assume the market will reverse the minute you get filled. You’re in big trouble when it’s a long way to the exit door. Never toss a coin in the fountain and hope your dreams will come true.
Assume the market will reverse the minute you get filled. You’re in big trouble when it’s a long way to the exit door. Never toss a coin in the fountain and hope your dreams will come true.
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Rule 13: Don’t believe in a company or its fundamentals.
Trading is not investment. Remember the numbers and forget the press releases. Leave the American dream to Peter Lynch.
Trading is not investment. Remember the numbers and forget the press releases. Leave the American dream to Peter Lynch.
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Rule 14: Don’t have a paycheck mentality.
You don’t deserve anything for all of your hard work. The market only pays off when you’re right, and your timing is really, really good.
You don’t deserve anything for all of your hard work. The market only pays off when you’re right, and your timing is really, really good.
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Rule 15: Don’t try to get even.
Trading is never a game of catch-up. Every position must stand on its merits. Take your loss with composure, and take the next trade with absolute discipline.
Trading is never a game of catch-up. Every position must stand on its merits. Take your loss with composure, and take the next trade with absolute discipline.
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Rule 16: Don’t think it’s entertainment.
Successful trading will be boring most of the time, just like the real job you have right now.
Successful trading will be boring most of the time, just like the real job you have right now.
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Rule 17: Don’t seek the Holy Grail.
There is no secret trading formula, other than solid risk management. So stop looking for it.
There is no secret trading formula, other than solid risk management. So stop looking for it.
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Rule 18: Don’t forget your discipline.
Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge.
Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge.
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Rule 19: Don’t ignore your intuition.
Respect the little voice that tells you what to do, and what to avoid. That’s the voice of the winner trying to get your undivided attention.
Respect the little voice that tells you what to do, and what to avoid. That’s the voice of the winner trying to get your undivided attention.
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Rule 20: Don’t project your personal life.
Trading gives you the perfect opportunity to discover just how messed up your life really is. Get your own
house in order before playing the markets.
Trading gives you the perfect opportunity to discover just how messed up your life really is. Get your own
house in order before playing the markets.
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Thread #153 - That's a wrap!
If you found this useful:
(1) Follow me @rohaninvestor for more such threads. I write a new thread every week simplifying trading/investing concepts.
(2) Bookmark this thread for future.
If you found this useful:
(1) Follow me @rohaninvestor for more such threads. I write a new thread every week simplifying trading/investing concepts.
(2) Bookmark this thread for future.