Best Trading Strategy Concept Ever? (With proven theory)

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  • เผยแพร่เมื่อ 25 มิ.ย. 2022
  • There are many approaches to the stock market, and many traders are looking for the best trading strategy to navigate through it.
    The truth is there is not just one singular strategy, however many are based on the same principles; Trend following, Breakouts of consolidation, good risk reward profiles and cutting losses short etc.
    These theories, at the heart, have a behavioural element to them, often found in asset bubble theory and the psychology of stock market participants.
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ความคิดเห็น • 424

  • @FinancialWisdom
    @FinancialWisdom  20 วันที่ผ่านมา +1

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  • @drtransistor
    @drtransistor ปีที่แล้ว +16

    Everybody is smart and reads the chart like a clairvoyant after the fact.

  • @constanciacollene9585
    @constanciacollene9585 ปีที่แล้ว +84

    You don’t always have to think long term. Investing/Trading is as much a tool for shaping your present financial situation as it is for forming your future one. Do you want to buy a BMW next year? Do you want to go on a cruise? Wouldn’t a vacation that was paid for with dividends feel nice?

    • @constanciacollene9585
      @constanciacollene9585 ปีที่แล้ว

      If you are investing in the hope of buying a house, you will almost certainly be looking at longer-term instruments. If you are investing to buy a computer in the new year, you may want short-term investments that pay dividends or some high-yield bonds.

    • @constanciacollene9585
      @constanciacollene9585 ปีที่แล้ว

      PRISCILLA DEARMIN-TURNER is my financial Expert .. look her up

    • @jovangerard5402
      @jovangerard5402 ปีที่แล้ว

      Investing to achieve financial goals can be exciting and challenging. Combining the pressure of time constraints with the fact that you’re not usually dealing with large sums of vital money (as in retirement investing), you may be less risk-averse and more motivated to learn about higher-yield investments (growth stocks, shorting, etc.). Best of all, get a pro for guide

    • @oftenwrongphong
      @oftenwrongphong ปีที่แล้ว

      Investing to buy even a chocolate bar next year is how dumb money loses money. But why da faq am I responding to this moronic spam ad?

  • @nikodemreid2128
    @nikodemreid2128 ปีที่แล้ว +114

    Incredible information Buying and selling is easy. Tough is to hold quality stocks. There are few gems in the world who held their stocks(after deep research) for years and sometimes decades. They are the most successful investor's

    • @philipvincent3342
      @philipvincent3342 ปีที่แล้ว +1

      I am a newbie looking for the best company to get involved with. I've done a couple of researches and every finger points towards Google & EQB. I have approximately $500k stagnant in my portfolio that needs growth. What is my best bet?

    • @legilooks
      @legilooks ปีที่แล้ว +3

      Google & EQB are good bets. I heard people are looking into these Chinese stocks as well NIO and BIDU. However, it wouldn't be very safe for you to make crucial financial decisions on your own.

    • @jorjabertie3466
      @jorjabertie3466 ปีที่แล้ว

      I tried being a Lone Wolf but ended up losing quarter of a Million $ because I lacked the knowledge of both the entry and exit point on the securities i focused on. In my opinion, it is better to save than to invest without a handler so you don't get to lose everything. I employed the services of a Professional and due to my large capital, i made back the quarter and more before long.>

    • @younglee-segredo831
      @younglee-segredo831 ปีที่แล้ว +5

      @@legilooks

    • @amyritchie4490
      @amyritchie4490 ปีที่แล้ว +1

      @@younglee-segredo831 I just verified her and it turns out she has worked with top notch companies like VOYA FINANCIAL PARTNERS, LLC, I thought this was just some overrated BS lol.

  • @EvanQuiel4
    @EvanQuiel4 ปีที่แล้ว +110

    Usually during this time of the year, we get to see certain stocks go up in the market, but that’s very unlikely this season cos of the recession and overall economic crisis, issue is I've been holding a lot of stocks hoping to sell for profit this month but I'm not sure if to keep holding or sell, I’ve been running at a loss since Q2 and 2023 is really not looking favorable for investors

    • @liuhuang
      @liuhuang ปีที่แล้ว +3

      The market hasn’t been looking good since COVID, and it will get worse this year, you should sell

    • @caroamira
      @caroamira ปีที่แล้ว +2

      We’ll be seeing the market plummet further, so I advise you do critical analysis on these companies you’re holding and their data projections in the next fews years. Even better, you could have an investment adviser guide you restructure your overall portfolio and offset the bad apples you’re holding, that strategy’s been working for me so far, saves me a whole lot of stress and continuous anxiety and also it’s very time efficient

    • @EvanQuiel4
      @EvanQuiel4 ปีที่แล้ว +2

      @@caroamira I’ve honestly been considering going the route of an advisor, this current market is no jokes for the average retail investor, but do these advisors really make any notable changes to a portfolio or am I better off on my own.?

    • @caroamira
      @caroamira ปีที่แล้ว +2

      @@EvanQuiel4 Unless you intend to buy and hold stocks for a decade, cos I don’t see a reason not to, I’ve been investing closely with an investment adviser for the past 2years and so far I’ve pulled over $850K in net gains and I’m not worried at all about where we’re heading this year because I know I’m in good hands

    • @EvanQuiel4
      @EvanQuiel4 ปีที่แล้ว +2

      @@caroamira Very well said, could you recommend this coach that guides you? I’m just a beginner and I’ve been having a terrible year

  • @Ramesh151
    @Ramesh151 ปีที่แล้ว +6

    Look for weekly chart lateral consolidation and price rise above 20ma and use macd cross over. Exit when price drop below sma20

  • @thylacine1004
    @thylacine1004 3 หลายเดือนก่อน +3

    From my experience,after consolidation there is normally a fakeout in the opposite direction in which it will eventually reverse in the true direction.....this phase liquidates the stop losses 100/150 pips,then builds momentum in the opposte direction usually atleast 3 fold from fakeout 3 x 100/150 pips,then i exit when the direction shows first signs of losing momentum ie volume dipping or smaller fading candles or long wicks etc....i find my strategy more probable with better profit % win rate,than your example which is a beginers basic low probability entry with very low profit %....

  • @VanPelt54u7fcyde57
    @VanPelt54u7fcyde57 11 หลายเดือนก่อน +109

    Gr8 vid lance. It makes sense on paper but for me in real time, I often find myself average bad prices when waiting for the turn and then get hammered or shaken out by HFT’s.. personally if I have strong conviction I like to wait for right side of the V with my entries but then add on the frontside when it drops or spikes.. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make

    • @purplebliss6875
      @purplebliss6875 11 หลายเดือนก่อน +2

      You might follow a lot of intriguing stocks in many industries. I'll advise you to work with a financial advisor who can assist you decide when is the best to buy and sell the shares or ETFs you want to acquire since you don't have to act on every forecast.

    • @arthurworld9768
      @arthurworld9768 11 หลายเดือนก่อน +1

      Yes I concur, I've been talking to an advisor for long now, mostly because I lack the knowledge and energy to deal with these ongoing market circumstances. I made more than $350K during this slump, demonstrating that there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring.

    • @rebeccaartgallary
      @rebeccaartgallary 11 หลายเดือนก่อน

      we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?

    • @arthurworld9768
      @arthurworld9768 11 หลายเดือนก่อน +1

      My advisor is ‘’AMY JEAN ANDERSEN’’ she’s highly qualified and experienced in the finan-cial market. She has extensive knowledge of port-folio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

    • @rebeccaartgallary
      @rebeccaartgallary 11 หลายเดือนก่อน +1

      Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her..

  • @waynem59
    @waynem59 ปีที่แล้ว +7

    One should not hide the fact that with tight stops the number of losing trades increases. This is not an argument against tight stops, but it does require a certain mental acceptance. With this approach, there may be periods when about one in three trades ends in a profit - and occasionally a rather small one. Then equity stagnates and the trader with wider stop-loss margins has the better results than the trader with tighter stops. This can be mentally exhausting, even if it is more profitable in the long run.

    • @ouebca
      @ouebca ปีที่แล้ว

      One should also not hide the fact that stops tend to hurt performance.

    • @waynem59
      @waynem59 ปีที่แล้ว +1

      @@ouebca Disagree - in this point I am with FinancialWisdom

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +2

      You are right Michael - I'm actually completing a video on stop losses and performance now😉

  • @yli97
    @yli97 ปีที่แล้ว +6

    I think it is not possible to say - as is done here too - that smart investors are able to maximize returns (and neither are institutional ones), managing to buy and sell with the ideal timing. This is demonstrated by the statistics which in fact show that these groups of investors fail to beat the market. Therefore, to say that smart investors "buy here and sell here" is just an idealization that does not correspond to reality.

  • @thomasflynn8712
    @thomasflynn8712 2 หลายเดือนก่อน +1

    That was by far the best video I’ve heard on risk management ever thank you

  • @sumitagarwal5539
    @sumitagarwal5539 7 หลายเดือนก่อน +1

    the animation in your videos is next level...brings so much clarity

  • @udayhegdekar1263
    @udayhegdekar1263 ปีที่แล้ว +1

    How to leverage
    What method do you advise

  • @RS-wc5vo
    @RS-wc5vo 11 หลายเดือนก่อน +10

    Hey Financial Freedom, first off love your videos there is a lot of useful information for begginer and amateur traders. Just wanted to point out that its a bit unfair to compare risk from no stop-loss strat to a regular one and also profits from a non-leveraged position to a leveraged one. Kind of inflates the result for the naked eye I would say.

    • @garkeiner2342
      @garkeiner2342 8 หลายเดือนก่อน +1

      True, I'm wondering why "smart" money shouldn't use a stop-loss.

  • @drsandepatil
    @drsandepatil ปีที่แล้ว +5

    Amazing content and great way of presentation. You made leverage approach quite simple. Thank you.

  • @stanmanmedia
    @stanmanmedia หลายเดือนก่อน +1

    Tremendous videos!! I needed to find this information years ago and implement it, but glad I have it now.

  • @wymandyer6261
    @wymandyer6261 9 หลายเดือนก่อน

    one of my best training vids,,thank you

  • @peterp4753
    @peterp4753 ปีที่แล้ว +1

    Same thing was with TDOC. Idea was good for the pandemic time Some people still believe that the stock is cheap, and are still buying it. I made ton of money going short.

  • @jameslucop4503
    @jameslucop4503 หลายเดือนก่อน

    Very clear minded and sensible. Thank you. Subbed.

  • @zachdemz1533
    @zachdemz1533 ปีที่แล้ว

    any good assets in this pattern right now? Thanks for sharing

  • @maxmaxed2887
    @maxmaxed2887 หลายเดือนก่อน +1

    Love your channel. I have a lot to learn and be patient.

  • @mukesh2400
    @mukesh2400 ปีที่แล้ว +2

    Never miss your videos, I follow your concept

  • @mattis5289
    @mattis5289 ปีที่แล้ว +24

    Hey there, I have been trading for about 6 months now and just about every trade slaps me in my face. Nearly impossible for me to catch more than a few points . I try to do top down analysis and MTF analysis, but it doesn't work for me . I say to myself, clearly I'm in the 90% that lose money, so I open a demo account, do my analysis, then take the opposite of what I would normally take(I know, it sounds stupid but I was desperate) and get the same result. I'm starting to feel hopeless, any advice for a struggling trader?

    • @mattis5289
      @mattis5289 ปีที่แล้ว

      @Adam camp Allen You're right, I don't lose money every single trade, but my main problem is trying to let my runners run. Very rarely do I catch big moves . Instead they go a few pips in my direction, then go against me if when I try holding them. Also my entries could use a lot of improvement. A mentor would be amazing, but getting one is easier said than done. If it's not too much to ask, do you know any?

    • @dgk2681
      @dgk2681 ปีที่แล้ว

      try to sell when you normally would buy, and oppersite. thats using the peoples psychology in the game to your favour. and beware of the fundamentals

    • @lancetschirhart7676
      @lancetschirhart7676 ปีที่แล้ว

      You aren't actually doing the opposite of what you would have done with real money.

  • @jennatalls3110
    @jennatalls3110 ปีที่แล้ว +4

    FW, Good information and comparison. However, I'm confused about the 'leveraging' aspect of this example trade. Is this really leveraging? Isn't the trade still costing 'Me' $5,000.00 to enter, as opposed to only $500.00 to enter (with the remaining $4,500.00 being stumped up by a third party (broking house)? Isn't it simply the selling price, i.e. the different points at which 'Public', 'Smart' and 'Me' closed out their positions that has determined the (differences in) $Return$, and not because 'Me' set a Stop Loss at 10%?

  • @MrHcmohanty
    @MrHcmohanty 7 หลายเดือนก่อน

    It is a great video with illustration. The power of leverage is explained so well.

  • @gigavolt
    @gigavolt ปีที่แล้ว +3

    You make it look so easy in hindsight

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +3

      So true, but hindsight helps foresight 'sometimes'...

  • @rainbowtrout8331
    @rainbowtrout8331 ปีที่แล้ว +5

    very good explanation. however I think using short term put options to manage risk is better than stop losses.

    • @kylehennen
      @kylehennen ปีที่แล้ว +1

      Lol yea, nothing like grinding money away as options expire worthless

  • @tanveer423
    @tanveer423 ปีที่แล้ว +2

    Thanks for sharing your knowledge. I don’t see any videos related to Day trading on your channel. Any books or videos you can share?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +1

      I'm not a promoter of day trading i'm afraid.

  • @mailbradm
    @mailbradm ปีที่แล้ว +3

    The range was 62-76 so lets call half way 69. The position was taken at 88. 10% risk would put a stop at 80....which is above the consolidation range. Am i looking at this incorrectly?

  • @Drforbin941
    @Drforbin941 9 หลายเดือนก่อน +1

    Some of the best videos on the market around

  • @mayankpatel3570
    @mayankpatel3570 ปีที่แล้ว +1

    My favorite youtube channel ♥️

  • @davidreichert9392
    @davidreichert9392 ปีที่แล้ว +2

    Buy and hold for individual stocks is fine, and clearly works well given that Warren Buffett and others have made huge profits from it. They key here is valuation. Hype drove the price to ridiculous levels which could easily be seen simply by looking at the PE ratio, which at even today's lower prices is still hovering about 30. Any wise B&H investor would have sold at the ridiculously high price levels (or at least not bought it).
    In short, if you're buying in for the long term, you need to think in terms of fundamental analysis and valuation rather than technical analysis and price action.

  • @aryansingh9181
    @aryansingh9181 ปีที่แล้ว +4

    It's a great video for retail investors. Can you please tell how do you screen these types of breakout stocks?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +1

      Have have a bespoke scanner in the members area

  • @bhaveravindra
    @bhaveravindra 3 หลายเดือนก่อน +1

    In this stratergy are you using a 20 SMA on a weekly time frame and do you take trade on a weekly close over 20 MA, please advise

    • @FinancialWisdom
      @FinancialWisdom  2 หลายเดือนก่อน

      Yes, I trade weekly charts

  • @NMranchhand
    @NMranchhand 9 หลายเดือนก่อน +1

    Super vid and approach! But, in the final chart, doesn’t the use of the leverage change your risk/reward ratio of your approach to 1:26?

    • @FinancialWisdom
      @FinancialWisdom  9 หลายเดือนก่อน +1

      Ratio would stay the same, you can lose more but equally win more.

    • @NMranchhand
      @NMranchhand 9 หลายเดือนก่อน

      Fabulous video. Just became a paying member of the group and enjoying beginning to dig through your strategies.

  • @pete84b
    @pete84b 3 หลายเดือนก่อน +7

    All based on assumptions and no data to back up that smart money actually bought "here" and public investor bought "here".... What is the point?

    • @cleanwhipzmobileautodetail
      @cleanwhipzmobileautodetail 18 วันที่ผ่านมา +2

      Exactly. This isn’t a strategy. This is literally “buy low sell high” in a chart of the past. Pointless video and no one who wasn’t already invested in Zoom could’ve seen that coming, unless they had strong intuition regarding the rise of remote work through the pandemic. Again, stupid video.

    • @bertustenbrinke9231
      @bertustenbrinke9231 17 วันที่ผ่านมา +2

      And since when does “smart money” not employ some kind of risk management? There’s some valuable information here, but it’s kind of twisted to sell “his” method.

  • @KabodTV
    @KabodTV ปีที่แล้ว +1

    question @12:20 you said your return is 26k but with leverage if you get 1:36 the 1K you invest should bring 36k instead of 26K, right???

  • @nc1975
    @nc1975 ปีที่แล้ว

    Did you buy ZM on that date at that price?

  • @OK-ky6rf
    @OK-ky6rf ปีที่แล้ว +1

    When setting stop loss to manage risk, how to deal with a gap downs the break below the SL level?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      They are not frequent and are part of the game

  • @ccbill2852
    @ccbill2852 ปีที่แล้ว +1

    great teaching, thanks a lot

  • @thomasblade4788
    @thomasblade4788 ปีที่แล้ว +1

    Thank you for your work and your passion as always, a pleasure to consume your content. Do you live off of trading? Do you believe there is a point in trading below daily time frames because of all the noise? I feel like scalping and day trading are way too stressfull/risky/time consuming to make a profit out of it

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      I'm not a fan of anything less than 1 day candles - trading costs also become a major factor below 1 day

  • @fidelisokodu201
    @fidelisokodu201 ปีที่แล้ว +1

    Thanks for the videos

  • @FinancialWisdom
    @FinancialWisdom  ปีที่แล้ว +4

    My Brokerage Account (Interactive Brokers) - bit.ly/3UGvn1U
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    My Forum - www.financialwisdomTV.com/forum
    My Strategy Blueprint - www.financialwisdomtv.com/plans-pricing
    Edgewonk Trade Analysis Software - bit.ly/3xS6S7s

    • @MartinSage
      @MartinSage ปีที่แล้ว

      Stan Drunkenmiller has Never had a loss year. Averages +30% per year. One year he made 1 Billion USD. Never uses a 🛑. Confesses that after 40yrs he can’t make the same returns since AI has taken over the markets.

    • @khantheintun9107
      @khantheintun9107 ปีที่แล้ว

      I want to learn stock position trade do you trade position??? or swing

    • @UnbenutzerKanalname
      @UnbenutzerKanalname ปีที่แล้ว

      @@MartinSage source for confession?

  • @silentbullet2023
    @silentbullet2023 ปีที่แล้ว +1

    great lessons thank you sir

  • @sijacquz
    @sijacquz ปีที่แล้ว +1

    Is this a hypothetical example or a trade you really used for your method? Was there really a proper base prior to the breakout on the weekly chart (as defined by what you look for in a base) for ZM? I am not seeing a real base. Furthermore - did ZM meet your fundamental requirements at this buy point?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      No i did not take a position based on my bread and butter strategy unfortunately, it serves as a good example nonetheless

  • @DorianGreer
    @DorianGreer 8 หลายเดือนก่อน

    Question: isn't this ROR assuming you are never stopped out? Using your method of utilizing stop losses at 10% you could just as well use 1% and exponentially increase your 'theoretical' returns. But it wouldn't be practical, would it -- because you'd be stopped out too many times. But in actuality the return is based not on risk over return but on amount invested (leveraged or not) versus the actual difference in buy-sell price. ROR seems to be a paper return, and not the actual amount returned from the trade. Am I seeing this incorrectly?

    • @BluesyBor
      @BluesyBor หลายเดือนก่อน

      That risk and ROR part is a bit confusing, but looking at real returns:
      1. At the price of $88, by investing $5000 you can buy 56 units - one more and you go above $5k - so you have 56 units bought at $88, worth $4928.
      1b. Risk is set to 10%, so if price falls to $80 (I believe that risk of 10% means exactly this) you quit. That would make you sell them for 56x$80=$4480, which is a loss of $448, indeed 10% but of your selling price, not buying price. Which is weird, because 10% from $4928 i is $492,80 to be exact, so allowed risked quote should be higher than what we've got. Any thoughts about it would be highly appreciated.
      2. If you sell at the price of $405, you get 56x$405=$22680. This compared to your entry makes 460% return (not 360%, even 405/88 gives you that, which is obvious). I wonder why he made this blunder.
      3. If you leverage 2:1, this gives you $10000 to buy units at $88 - which makes you go not for 112, but 113 units actually. So you have 113 units for $88, making them worth $9944. Again no space to squeeze one more.
      4. Now you sell those 113 units for $405, which gives you $45765. ROI is at 915%, not 720% - we're comparing that $46k to your initial $5k, right?
      I wonder, however, where we should put the cost of leverage, because no one is gonna lend us money for free.But if the cost would be higher than additional return, why even use leverage? So it has to take only a small part of the returns.
      5. And now the ROR - as a return on risk, you compare your results not to the amount you've put in but to the amount you'd lose if things go against you. And yes, it's pretty much paper thing, but it shows how crucial risk management is.

    • @DorianGreer
      @DorianGreer หลายเดือนก่อน

      @@BluesyBor The first sentence in #5 brought it all together. Good job. Thanks.

    • @BluesyBor
      @BluesyBor หลายเดือนก่อน

      @@DorianGreer I still think that stoploss at 10% is rather tight, throwing you out of many good trades too early (fakeouts and all that stuff). I don't remember if I saw it on this channel or another one, but someone made backtesting with whichever method that was and with different stoplosses, and 15-20% made best results.
      But yeah, that's backtesting and there's your life where you don't know what will happen tomorrow. I'm not a trader, but I tried to get into this kind of trading (with various indicators and so on) and what threw me off was that all those MACDs and other stuff were recalculated on the last few candles when new ones were added - which made my decisions invalid most of the time, because MACD crossing which confirmed a good trade wasn't even there a few days later. I took screenshots to be sure I'm not making things up in my mind.
      Yes, I know that's thanks to volatility, but if an indicator is said to take last 20 candles into account, then I suppose a plotted point won't change in the future - but it changed as if it took a few later candles into consideration.

  • @lawsongarnett2032
    @lawsongarnett2032 ปีที่แล้ว +1

    Is this only to be applied to swing trading or can this be applied day trading? Additionally can this be applied to options?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +1

      You can apply time all time frames to improve probability

  • @vicchris3943
    @vicchris3943 7 หลายเดือนก่อน +2

    Everyone is smart when look back, but don't know before it happened

    • @BluesyBor
      @BluesyBor หลายเดือนก่อน

      Not really. Smart people are sure beforehand, mostly because of the informations they have and their experience - if someone is "smart" only after the event, he's not really smart but hopefully he can learn from his mistakes.

  • @intercrew99
    @intercrew99 ปีที่แล้ว +2

    Yeah but what do you do when you have Amazon and Google when they range for a year. The 20 week MA and the Mac signal line will move above and below several times because they are in a range. What do you do for those type of stocks?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +2

      Hi Will - Remember this is asset bubble theory and is based on the weekly chart - Nothing is perfect all the time.
      However I trade the same on any stock 20 MA, MACD, Consolidation, risk management etc etc with all this in mind I can be right just 30% of the time and still make money, because when it does take off the winners dwarf the losers..

    • @bloatedtonydanza7798
      @bloatedtonydanza7798 ปีที่แล้ว

      In your specific scenario you can use the Stan Weinstein approach mate. GL.

  • @Paulo-zj8jf
    @Paulo-zj8jf ปีที่แล้ว +1

    Smart money are using Stop-loss and also know how to leverage. Nothing new, but a guy way to convince the public that you can sell them something valuable.

  • @assafalmog2868
    @assafalmog2868 5 วันที่ผ่านมา +1

    Amazing priceless content!
    Quick question -
    Is your price action actually being made on the weekly chart? or do you go down to the daily time frame?
    Also, do you leave the stop loss on the initial point? Aren't you afraid that the price will go up and you might lose great momentum of the up-trend?

    • @FinancialWisdom
      @FinancialWisdom  11 ชั่วโมงที่ผ่านมา +1

      Always a weekly chart. I raise the stops with the MACD signals.

  • @TS_movi
    @TS_movi ปีที่แล้ว

    Isn‘t ROR of public in zoom 1:0,33?

  • @coolmusic5393
    @coolmusic5393 ปีที่แล้ว +1

    Another great video!!

  • @stephenbush7200
    @stephenbush7200 7 หลายเดือนก่อน +2

    Great information but you left out one very important thing. How do you find those few stocks out of many thousands, like Zoom, that are going to be 5X'ers or 10X'ers to mostly limit your investing to? More than likely people will invest in stocks that have already made large gains over many years and hope for 10% and 15% returns for each of many more years. Maybe it would be better to focus the video on using these techniques in the more common investing circumstances average investors face?

  • @zahidmuslim4110
    @zahidmuslim4110 9 หลายเดือนก่อน +1

    Excellent

  • @zerphase
    @zerphase 5 วันที่ผ่านมา

    Isn't buy and hold a good idea if you can average down, and you're long term investment thesis is correct?

  • @neocruise2003
    @neocruise2003 ปีที่แล้ว +2

    But will the brokerage allow leverage for do many days or weeks or months?? Aren't they going to charge high interest? Did you consider the cost of interest in this?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +5

      In a low interest rate environment it is of little concern to me in relation to the returns. I mean, what is 5% per year leverage costs if it can make you 40%.....

  • @michelllecox7299
    @michelllecox7299 ปีที่แล้ว +2

    Hi is the 20 week moving average the same as 100 day moving average ?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +1

      yes, although the chart structure would be different

  • @bhaveravindra
    @bhaveravindra 2 หลายเดือนก่อน +1

    Are your services available for USA market too since I trade USA market, I see you are in UK and was not sure if your provide services for the USA market too

    • @FinancialWisdom
      @FinancialWisdom  2 หลายเดือนก่อน

      Almost all our trades are US based

  • @nitta1915
    @nitta1915 3 หลายเดือนก่อน +1

    nice content. thank you

  • @Mike-dl7fz
    @Mike-dl7fz ปีที่แล้ว +1

    nice video as alway,s , i,m in the UK are you based in wale,s ? , i assume you trade only the US market,s ,something i may do next cycle

  • @the_real_cookiez
    @the_real_cookiez ปีที่แล้ว +1

    So how do we find the next Zoom? This is the real question. Appreciate your other content though!!

  • @jonbedford5832
    @jonbedford5832 ปีที่แล้ว +1

    Simple, yet sublime. Kudos.

  • @titanstrading
    @titanstrading ปีที่แล้ว +1

    Great video and gems 💪

  • @Majkael
    @Majkael ปีที่แล้ว +1

    Greta content! Are you using trailing stop loss?

  • @USMColdies
    @USMColdies 8 หลายเดือนก่อน

    Anybody knows if he adjusts his risk to take account of using leverage- is it 10% of leverage or 10% of his principal? The first will double his risk by 2

    • @USMColdies
      @USMColdies 8 หลายเดือนก่อน

      I missed it, it's 10% against the leverage

  • @Dan16673
    @Dan16673 หลายเดือนก่อน

    Why not buy puts as loss prevention?

  • @RICxXxMoto
    @RICxXxMoto ปีที่แล้ว +3

    I agree with a lot you said, but you cant calculate your 1:36 risk ratio till after you close out the position. So unless you have a price target it's worthless when entering a trade. I also highly doubt after being up 100-200% you wouldn't take profits. Also your real risk to reward needs to account for how many trades you stop out of per successful trade. I understand this is a cherry picked example for learning, but most winning trades dont shot to the moon for 550%.

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +2

      I calculate risk reward from historical data prior to a new trade. I'm also mechanical so leave trades to run regardless of being up 100% unless the indicators tell me otherwise.

  • @oluwadamilarebakare3699
    @oluwadamilarebakare3699 ปีที่แล้ว +3

    Using stop loss, price could hit your stop several times before continuing in the up direction

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +1

      Of course it could, but its how much you lose in comparison to the gain, not so much the frequency

    • @oluwadamilarebakare3699
      @oluwadamilarebakare3699 ปีที่แล้ว +1

      @@FinancialWisdom if on every trade I want to risk only 1% of my balance and I buy with 1% of my balance, no leverage, no stop loss. All I can lose is still the 1% of my balance that I bought with. Is this a good management of risk?

  • @ahmeleba
    @ahmeleba 6 หลายเดือนก่อน

    is this strategy suitable for long term investor ..because you use 20 day moving average , can we use 200 day mov average ..to avoid fluctuations

  • @marcusrex77
    @marcusrex77 11 หลายเดือนก่อน +1

    I like your video and the way you easily present things. And I see that you bought the stock slightly after the breakout. But how do you know that it was a real break out that would continue to go up???... rather than a false break out that would reverse itself downward.

    • @FinancialWisdom
      @FinancialWisdom  11 หลายเดือนก่อน

      You never know you just have to manage the risk on each trade, being right just 40% of the time can be profitable. Its not knowing what will happen in each trade but after 100 trades.

    • @dailydoselaughter2686
      @dailydoselaughter2686 9 หลายเดือนก่อน

      That's why there is a stop loss

  • @scheuermann11
    @scheuermann11 ปีที่แล้ว +1

    because of gaps understating your risk , unless you hedge with options, then you pay for that insurance

  • @wboquist
    @wboquist ปีที่แล้ว +3

    Impressive analysis. But, is this video recounting what you actually did, or was the case study developed only after the price movements were history?

    • @GardenDoctorKris
      @GardenDoctorKris ปีที่แล้ว +2

      Yeah that's the point..in real time you only know the highs and lows in hindsight.....there's also some defective reasoning about the leverage risk...you would only ever lose 100% if the company goes into liquidation, if the leveraged stop loss is hit you lose 25% of capital instantly, do that twice and you've lost half your capital. It can happen in a matter of minutes.. so then you're out, you lost money and then the stock can shoot right back up again and you would have been up if hadn't placed a stoploss, it's called stoploss hunting where the algos drop the price byba one share trade and set off a whole heap of stoploss orders which they buy up and then let the price run. That's why trading short or long-term is not for the faint hearted.. really you're just along for the ride...smart money dumb money...the manipulators and the manipulated.

  • @BobzChannel77
    @BobzChannel77 หลายเดือนก่อน

    the hardest is to wait until correction / crash especially for day trade who don't have any activity.

  • @stevo271
    @stevo271 12 วันที่ผ่านมา +2

    Who in their right mind would risk 20% of their account using leverage? 5 losing trades and you're virtually broke.

  • @l4k
    @l4k 8 หลายเดือนก่อน

    A stop loss that makes sense changes everything.

  • @mamacita1000
    @mamacita1000 ปีที่แล้ว

    I would like to add these settings to some charts. Thanks you . Looks like a great exit strategy to learn. I have looked and looked, does anyone know how to make the chart red and green with the crossovers as the chart shows at minute 8:10 ? I use think or swim and do not know what this setting is called. Thanks

  • @niidaimehokage5731
    @niidaimehokage5731 ปีที่แล้ว

    Hello... What I don't understand here is that why do you assume the smart money group didn't use stop loss?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +1

      I dont its an assumption based on what i hear

  • @awesomesheikhraton922
    @awesomesheikhraton922 ปีที่แล้ว +1

    Finally, Release a video.. please be active.

  • @richardlionheart3965
    @richardlionheart3965 3 หลายเดือนก่อน +1

    the trouble isn't the trade itself, it's finding them to start with - how do you find these stocks? with a stop at 10% it won't take long to smash your account if you pick the wrong ones

    • @FinancialWisdom
      @FinancialWisdom  3 หลายเดือนก่อน

      No, a 10% stop loss against a 10% position size is only a 1% equity loss. If would be insanity if you were risking 10% of equity in each trade 😉

  • @abdulhadialgohani248
    @abdulhadialgohani248 ปีที่แล้ว

    Thanks pro

  • @amitsonlineclassroom1056
    @amitsonlineclassroom1056 ปีที่แล้ว +1

    Your approach is very simple and clear even a newbie like me can understand the concept.
    Thanks for updating

  • @erayozvarlik
    @erayozvarlik ปีที่แล้ว +6

    First of all it's another nice video, thank you for your time.
    But, something caught my eye and I've found it weird. You projected yourself as even smarter money or maybe 'genius' money by applying RR differences between your approach vs 'smart money' approach. The thing is, smart money you described is full of assumptions which you created yourself. For example who says smart money does not use stop losses? Or how come you are not in the public crowd even you achieve a high success rate? All of these basic categorizations can be useful psychologically while in the market but they don't seem very accurate objectively to a highly chaotic environment, I don't know it just sounded a little out of touch.
    As long as you make money consistently, you are the smart money. Don't get me wrong but you just bought a consolidation breakout before an epic rally and take your profits cuz of a macd crossover. In this case your main talent lies in your psychological aspects like patience and determination. I hope you make a video about your psychological approach to the market, like how can you restrain from taking profits early or convincing yourself to enter for that specific breakout etc.
    I know my comment sounds negative overall but my intentions are not. It's a good video motivationally, I enjoyed it and have a nice Sunday.

    • @alduin6036
      @alduin6036 ปีที่แล้ว +1

      just accept that you can't buy at the very bottom and sell at the very high. you never know and you can't control it. unless you are the market manipulator. what you can do is make a proper trading plan and stick to it. sticking to your trading plan is the real challenge. you might want to read books like trading in the zone, trading for a living etc.

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      Hi Eray - I appreciate your feedback, thanks.
      You are right these are based on assumptions, but for me a typical example from what I have listened to over the years, and of course this is asset bubble theory which is sound, albeit not always predictive.
      The videos always helps to provoke thought with some nuggets hopefully.

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      I agree

    • @waichauyin516
      @waichauyin516 ปีที่แล้ว

      Finally i see a quality comment,not some fucking bots promoting gurus

  • @HateDietPepsi
    @HateDietPepsi 3 หลายเดือนก่อน

    So basically you are using a weekly TTM squeeze type indicator with MACD entry and exit? I already have such a TTM and MACD trading bot that does rather well.

  • @zilchde3554
    @zilchde3554 3 หลายเดือนก่อน

    The increase of smart money is 330%. You have to take into account that you already owned 107 dollar. Times 4,3 equals 330%

  • @alphabeta8403
    @alphabeta8403 ปีที่แล้ว

    6:00 specific strategy

  • @dafesmasterclass8592
    @dafesmasterclass8592 ปีที่แล้ว

    Nice video 👍

  • @yojomojo
    @yojomojo ปีที่แล้ว +1

    this works great for crap pump and dump coins!

  • @growwealth4885
    @growwealth4885 ปีที่แล้ว

    You are great

  • @portfoliotrader284
    @portfoliotrader284 ปีที่แล้ว +2

    Beware - Its essy to show great trade in hindsight. Risk to reward is just one equation. What would also matter is win rate.

  • @akashparwar6828
    @akashparwar6828 ปีที่แล้ว +1

    Great content. But ur percentage calculation is wrong

    • @waichauyin516
      @waichauyin516 ปีที่แล้ว

      how so?can you explain it?

  • @ishanchaturvedi5674
    @ishanchaturvedi5674 ปีที่แล้ว +1

    How is it different from Stan Weinstein's stage analysis?

  • @farhinhalder9131
    @farhinhalder9131 ปีที่แล้ว +1

    Nice

  • @akashparwar6828
    @akashparwar6828 ปีที่แล้ว

    Even after taking leverage the return will still be the same. Only difference being that it will be if the leveraged amount

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      A 2 to1 leverage will double the return on investment, loss or win

    • @waichauyin516
      @waichauyin516 ปีที่แล้ว +1

      percentage of return of total invested capital will be the same,the total amount of gain/loss will not be the same

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      @@waichauyin516 Percent of return for total invested ($5000 in each example) will be different as will total $ amount

  • @mayankpatel3570
    @mayankpatel3570 ปีที่แล้ว +1

    More this type of vidio

  • @kellydjohnson
    @kellydjohnson ปีที่แล้ว

    How does the public know to start to track something like Zoom before a breakout might occur? Things like pandemic fortunately don't come around that often to trigger such a trend. Maybe some other innovation might come along to start a new trend. Maybe track a bucket of stocks that you already like?

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      You don't, you wait for the breakout to occur.

  • @dennis6325
    @dennis6325 หลายเดือนก่อน

    Stop loss sales are not guaranteed. You may be risking 100% even with a stop loss. Only a put option would provide a guaranteed exit and risk.

  • @johngreydanus2033
    @johngreydanus2033 4 หลายเดือนก่อน

    The Probability Of Anything Happening Is Inversely Proportional To Its Desirability

  • @alirezasharifan7841
    @alirezasharifan7841 ปีที่แล้ว +2

    great job. your deep study and active experience is completely visible in your approach. I always follow you although I have my own strategy. I use 2:1 leverage but i use that only for winner stocks that i can shift my initial SL to break-even. instead of MACD i use Mansfield RS line and 26 weeks RS line.

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว +1

      Mansfield is good, Stan weinstein used that approach too

    • @juno2618
      @juno2618 ปีที่แล้ว

      Alireza, do you have a particular Mansfield indicator on tradingview? What do you mean by 26 weeks RS line?

    • @alirezasharifan7841
      @alirezasharifan7841 ปีที่แล้ว

      @@juno2618 i use "relative strength (Mansfield RS)
      From stage_analysis
      Search it in indicators in tradingview

    • @alirezasharifan7841
      @alirezasharifan7841 ปีที่แล้ว

      @@juno2618 if you use simple RS line, you can change its period to 26w. Its shorter time and more useful for momentum trading

  • @gaibolg25
    @gaibolg25 ปีที่แล้ว +5

    I agree with the concept but not with the leverage, it's obvious you put it just to make it looks your method has a bigger return but in real live trade you would be very careful to use the leverage especially with covid market situation, don't get me wrong, im still a fan all of your videos but not this one. Cheers

    • @FinancialWisdom
      @FinancialWisdom  ปีที่แล้ว

      Thanks Bobby, much of what I do is thought provoking, and sometimes over exaggerated to emphasise a point.