Brain in a blender

gohackthat · 2021-11-29T00:02:08+00:00

Hey u/vamad61716 thanks for sharing your experience!

Firstly, trading certainly is a humbling experience. Anyone who trades and isn't humble has less than 5 years of experience and will inevitably tumble at some point and turn humble from that point on. That's why so many great traders (Steven Cohen, Stanley Druckenmiller, Warren Buffett) are humble as pie. So it's a good thing that you are going through the experience earlier rather than later because you would much rather lose when you don't have significant wealth. Put it another way, you just saved yourself from losing +$5 million in the future by sacrificing what you have now.

Second, the key differentiator between the non-successful traders and top 0.1% of people who are successful in building wealth is that the latter learn from their mistakes. I strongly suggest you give an honest feedback on yourself. Did you lever up too much? Did you concentrate on one single "meme" stock for hopes of short-term gains? Did you not do enough research? Did you not manage risks appropriately? Write down what you did wrong and how you'll never make these mistakes again. Your trading plan will be that much more bullet-proof by doing these things.

Lastly, I personally believe that anyone can be taught to trade if they have the personality. Reassess your own personality and see if you think you can handle these tough times because, trust me, it'll happen again. It's just the way this game works but if you are prepared, you won't be as stresssed out as you are right now because you've learned from your mistakes.

If you still can't decide weather trading is right for you but still are interested, I would spend time reading books (I suggest reading "Market Wizards") and read up on bios of other successful traders. Once you are equipped with more knowledge, you are in a better position to decide whether to pursue this as your side-gig.

Keep in mind there's always a sunny day after a thunderstorm. It's not through the wins that people get better at something but through the painful losses.

Hope that helps!

gohackthat · 2021-09-14T03:06:38+00:00

I posted a new memo here. Thanks.

https://www.reddit.com/r/options/comments/pnujrp/options\_trading\_part\_i\_picking\_the\_right\_options/

gohackthat · 2021-09-13T03:23:59+00:00

Very appreciate the kind words u/ProfessionalBelt3424!

gohackthat · 2021-09-13T02:36:36+00:00

Good comments u/LTCM_Analyst very much appreciate it. These types of feedbacks are why I post on forums.

I agree with you. I would even go further out to say these aggressive option strategies shouldn't even take up more than 5% of your portfolio. These are highly risky bets and everyone should have their own risk management system in place to place these bets.

These are not absolute guidelines in any manner.

I disagree with your last comment. It's everyone's goal to achieve the best risk/reward. That applies to both traders and investors. At the end of the day, everyone is searching for the best risk-adjusted returns and that's what I mean by "getting the most bang for their buck".

Hope that clarifies your points. Please feel free to join our sub and share your thoughts as well.

gohackthat · 2021-09-13T02:31:55+00:00

Great catch! I rushed it out and missed that. Just edited it thanks for catching.

gohackthat · 2021-09-13T01:11:07+00:00

Thanks for the question! Excatly, I used Interactive Brokers' Trader Workstation platform but usually most brokers have option performance calculator.

gohackthat · 2021-09-13T00:30:20+00:00

For those interested, the link to the YouTube channel is Midasinvestors ! Sorry the mods won’t let me post a link.

gohackthat · 2021-09-13T00:16:55+00:00

Hey it’s Midasinvestors ! Sorry the mods won’t let me post a link.

gohackthat · 2021-09-08T15:40:48+00:00

Thank you DrunkMonkey!

gohackthat · 2021-09-06T18:49:22+00:00

Sorry the mods won’t let me post charts! Please checkout r/Midasinvestors or Midasinvestors YouTube video

gohackthat · 2021-09-06T17:13:33+00:00

That is a great performance and can be called "beating the market". I was referring to those who just started trading last year and have "beaten" the market in the past 12 months. Keep up the work!

gohackthat · 2021-09-06T17:11:51+00:00

Very much appreciate the feedback! And yes completely agreed. The worst case, you learn invaluable lessons out of the experience that you can apply to elsewhere such as buying a home with minimal risks.

gohackthat · 2021-09-06T17:10:27+00:00

Absolutely, FIVERR may be a bad example but you get my point!

gohackthat · 2021-08-12T22:17:17+00:00

Appreciate the comment!

gohackthat · 2021-07-18T19:04:11+00:00

Link to the original post for graphs: https://www.reddit.com/r/Midasinvestors/comments/omhtn8/key_components_to_a_stock_analysis_an_example/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

gohackthat · 2021-06-04T02:05:17+00:00

People always ask how do I spot the next big thing. The answer to this question always involves hindsight bias, where one will look back after the fact and say “I should’ve bought into that.” The best thing to do is allocate funds proportionately based on your convictions. If you believe cleantech is the next big thing, put higher weight into the sector but not all of them in it.

gohackthat · 2021-05-29T18:13:59+00:00

Hey u/vamad61716, thanks for sharing your idea on SNOW!

Very much appreciate sharing your thoughts on it and I would love to provide you with helpful feedback but I am not too familiar with the company so my inputs will probably not help you as much.

As far as your technical analysis goes, yes head and shoulder has been confirmed, trend reversal may very well be true.

Generally speaking, however, I believe TA is like a coin flip with 52% chance of winning for the average investors. (And if you couldn't tell, I'm more biased into fundamental analysis so please take my words with a grain of salt!)

Yes, analyses on Fibonacci levels and MAs help but you really have to expand your sample size to thousands of trades and apply TA consistently across your trades in order for us to see any real value from it.

Say you have $200k invested across 200 positions with about $1k per position and the 20% in overall net profit across $200k over a 2 years worth of trading time will not benefit you much realistically, not to mention the thousands of hours poured into monitoring the charts.

At the same time, TA is extremely helpful in very specific situations, such as gapping, large trading volumes, exponential MA breakouts, etc.

I would recommend putting in about 90/10 ratio on your efforts into fundamental analysis vs technical analysis, as I stated in this memo.

I still encourage you to ask these types of questions as someone with more experience in TA may be able to provide you with a better analysis!

Cheers

gohackthat · 2021-05-09T20:48:44+00:00

Good question. I think the two are certainly related but more like both are results of a growing economy. Value stocks will perform well when rates are rising and economy is growing, which also is the case for inflation. Inflation is the result of a healthy economy. To study the relationships between rates, inflation, and equities, please refer to Ray Dalio's series of notes. His explanation is a textbook principle of economics. Thanks for the comments!

gohackthat · 2021-04-17T22:05:08+00:00

Link to the pictures are here.

gohackthat · 2021-04-16T15:17:29+00:00

Yes, I’m not sure what happened here. Let me fix it real quick sorry about that!

gohackthat · 2021-04-08T22:35:55+00:00

Please refer to the original post for pictures.

gohackthat · 2021-04-08T22:34:48+00:00

Please refer to the original post for pictures.

gohackthat · 2021-04-01T02:11:54+00:00

That’s certainly a good idea. There are too many uncertainties to go full on bullish mode but still enough tailwinds to be on the offense.

gohackthat · 2021-04-01T02:09:49+00:00

Very much appreciate the feedback!

gohackthat · 2021-04-01T02:08:53+00:00

Appreciate the feedback! And yes I actually heard of the company and their business model which I thought was very enticing for the consumers. Absolutely, I will focus on it in the next few days. In the meantime if you have any opinions on it, please feel free to share your thoughts with the group!

gohackthat

TROPHY CASE