Tweet compilation, Part 2
This post continues from this original one (collection all of my tweets related to my strategy and mindset).
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Easy to get overwhelmed when there's countless tickers flashing RT quotes, news, and fintwit posts.
Simplify:
1. Identify the few leading sectors/assets
2. Within those, identify the few leading stocks
3. Pull up their weekly charts
4. Draw horizontal lines for entries/exits
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
“I always say that you could publish trading rules in the newspaper and no one would follow them. The key is consistency and discipline.” – Richard Dennis
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Price action tells us more than just fundamentals. It tells us what the market thinks of those fundamentals.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
If following a breakout scares you, use a small position size. The real risk is having zero allocation to new leadership.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
As market participants, we’re so lucky. Thank you to:
- Fintwitters, bloggers, authors
- Businesses that provide low-cost trading/data/software
- Regulators that give us transparency (13F, CoT, Insider filings)
- Entrepreneurs that allow us to ride along with their success
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
It’s liberating not having to make predictions or caring about outcomes.
👉🏼 No predictions because the market doesn’t care what we think or want.
👉🏼 Not caring about failed trades because risk is managed and the market is an endless opportunity stream.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Fintwit is amazing, but who you follow matters.
Are you following those that are calm, simple, rules-based, objective, humble? Or those that are angry, have no risk management, cry manipulation, and have an ego?
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Simple trading plan:
Buy breakouts in strong stuff.
Why? Because trends and relative strength persist.
When they no longer do, move on.
Losses are always limited, but gains are not.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Do we know what the Fed or companies will report? No
Do we know how the market will react to the report? No
Stay objective. Focus on the price action.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Why do we follow trends? Because trading is a lot easier when you have the wind in your sails. Make your life easy.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
3 layers in my process that give rock-solid confidence:
- Follow leaders 💪🏼
- Follow simple, clean breakouts ✈️
- Position size 📏
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
I strive to do 3 types of posts:
1. market leadership
2. simple breakouts on weekly charts
3. mindset & process
No news, predictions, fancy indicators, etc.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
You can have zero knowlede of some market's fundamentals & future prospects, but still be long or short. That, ladies & gents, is the beauty of trend following.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
The false breakdown is my fav setup: gives you a nice low entry price with defined risk and potential for a big & fast move.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Confused by the intermarket? It's normal. Correlations can break & moves in diff assets can happen on diff timeframes. It's why I focus on the charts of the leaders that I hold or want to buy.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
The best long entries:
- Failed breakdown
- Pullback/retest within uptrend
- Tight range within uptrend
- Breakout
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Financial media is all about 'top picks' and price targets/forecasts. That's not how to win.
Focus on learning a rules-based, forecast-free strategy based on price action.
![Twitter avatar for @alphacharts](https://substackcdn.com/image/twitter_name/w_96/alphacharts.jpg)
Keep it simple:
- Weekly charts
- Horizontal lines
- No fighting trends
- No forecasts
- Minimal intermarket work
Important Disclaimer: This blog is for educational purposes only. I am not a financial advisor and nothing I post is investment advice. The securities I discuss are considered highly risky so do your own due diligence.