“Learning would be exceedingly laborious, not to mention hazardous, if people had to rely solely on the effects of their own actions to inform them what to do. Fortunately, most human behavior is learned observationally through modeling: from observing others one forms an idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for action.” – Albert Bandura, Social Learning Theory, 1977
First chapter seeing the true concept of “Tandem Trader” this is the debut of the realtime sitting in the cockpit with Nate and I found it VERY valuable.
He starts out with the old school classic ABCD setup, and while I have watched Textbook Trading a couple times and the ABCD is discussed there many times. I really got a lot more out of it this time around by watching it real time. Very cool and got me excited for the following chapters with more real time replays.
The rest of the chapter goes into high detail on numerous textbook long (buys) type setups. I won’t go into much detail, you can see quick summaries in my notes below. And there is so much detail and so much info, trying to recount them here would be redundant, you really need to watch them. That being said if you on the fence about purchasing, trust me when I say the lessons are very high quality, and very well structured. This is truly the first time I feel like I’m in a classroom structure seeing trades. As opposed to so many other DVD’s and videos where they are just recapping after the fact with a daily chart.
Still learning more and more about scaling in, I’ve been a member of Investors Underground for jeeze 5-6 years, and I’ve seen Nate’s comments about scaling in and out probably thousands of times. But after seeing it in action I had no idea just how impulsive I was. These early chapters have for sure helped me to realize a HUGE chink in my armor. Seeing Nate trade real time and scale in and handle orders is a hugely valuable lesson. Just finding this problem in my process is worth the price of admission. I sincerely believe if I become better with entries and exits because of these lessons, the DVD could end here and it would be worth the price.
Chapter 3 Notes
Nasdaq textbook longs
-Cool diagram showing the pattern
A – Push
B – pullback
C – Perk off of lows
D – HOD, breakout
Risk on B
Big gap up and pullback, buyers waiting for new breakout after profit takers come in.
Wait for some volume
Description of whole number over and under to set new risk.
If its working, use higher lows as new set risk.
Scale out to help your patience and emotions. Easier to let the trade work after you have booked some profits.
Retest – over – under description, this will happen and is not bad.
Looking for a way to get long, but with a set risk, B of ABCD
GLUU, FB, IDTI, BBRY
Great discussion of forming plans.
I feel I understand “anticipating the move” better with these examples of ABCD.
Less size can be better to allow a trade to work for you.
SSR – buy into washouts/anticipate
-Even in panics, have a plan, for the criteria to match. Get long when others are freaking out.
Risk against LOD once morning shakes out.
-Really like to see how Nate adds in and out, good value in the live trading.
-Morning washout, ABCD
SRPT, SEAS, MOBI, YHOO
How to set risk/find bottoming
Former Runners – MOBI
Size down if plan isnt working, you can always readd if it starts to work, no need to be all in, all the time.
YHOO – Beat chart – weak open – washout
pre market/AH, support and resistance for washouts
-anticipating washout, start in small.
Couple indicators together, R/G, daily breakout, 52 week high, whole number cross etc. Each attracts a different group of buyers.
VII – former runner – float rotation
Final hour, gapper
Want to be contrarian, sell when everyone else wants it, buy when no one wants it. Don’t be part of the herd.
CLF – MTF breakout
ABCD intraday + Daily chart breakout
watch volume with para for exit