Skip to main content

Stock Trading: Gap Between 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

For more information on stock trading, check out Digital Nomad Here.
Labels:

Comments

Post a Comment

Popular posts from this blog

OpenShot Add Text: Subtitles and Captions

OpenShot is an open source video editing soft. Adding subtitles and captions is quite tricky. Adding subtitles takes effort. Suggestions by GeekOutdoors - You can have the soundwave form displayed so you know where the talking and pausing occurs. - You also use the green marker to help you decide how long the subtitle should be shown. - Encode the subtitles in Notepad so you can easily copy and paste it later on - Turn off the snapping tool which is on by default; to remove subtitle overlap For captions, GeekOutdoors, - used footer text, shortened the duration to like 3 seconds - if you want advanced editing of the text, you will need to download and link Inkscape to OpenShot Check out  basic OpenShot tutorial  or  list of OpenShot tutorial .
Post a Comment
Read more

Mark Minervini Trend Template

Mark Minervini is  one of America's most successful stock traders; a veteran of Wall Street for nearly 30 years.  His trend template The current stock price is above both the 150-day (30 week) and 200 days (40 week) moving average price line The 150 day moving average is above the 200 days moving average the 200 day moving average line is trending up for at least 1 month (preferably 4-5 months minimum is most cases) the 50 days (10 week) moving average is above the 150 day and 200 days moving average the current stock price is trading above the 50 days moving average The current price is at least 30 percent above its 52 week low The current stock price is at least 25 percent of its 52 week high  and closer to the new high the etter the relative strength ranking is no less than 70 and preferably in the 80s or 90s For more articles on stock trading, check out Digital Nomad Here
Post a Comment
Read more

Get into Web Hosting without Spenting a Cent

Another money making idea you can utilize using the web is through selling web hosting. You can now get into a reseller account for free. Either you sell paid hosting or offer free web hosting and having the client post your ads in their website. With Resellerspanel.com you can sign up for free as a reseller of their hosting; Yes, no sign up fee. This would be a great start for all those broke up there looking for a way to make money onlin; has been in existence for over 15 years! With MyOwnFreeHost.net you can give 300MB free hosting and in return get your ads posted in your clients web site. All they ask is a link for upgrades later on on your site. If you are looking for web hosting for free for your website, check out 000webhost . They have been in the business for over 10 years. There is also InfinityFree  which have been in business for 5 years. I am mentioning about the years in business because with longer business years, it is less likely for the comp...
1 comment
Read more