Textbook Trading – Notes and Review of Chapter 11 – Websites & Homework by @investorslive

Table of contents:

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Summary:

Wrapped up the final chapter today. This was a solid chapter, and I think would be very useful for beginners to trading or new guys to pennystocks. Its kind of a “random” chapter, you can tell there were several things Nate wanted to cover and didn’t get to them in the other chapters so he wraps up with them. Its almost like a virtual Q and A. Since I can tell these are topics that he probably gets quizzed about a lot.

Intro

Middle section covered good twitter followers for the long and the short. Twitter is probably pretty well known for the non stop pumping of stocks by kool aid drinkers. But it is probably most valuable from an actionable trading perspective when it comes to “Hit piece writers” or well known bashers. In my experience there is so much noise when it comes to promoting stocks tweets seldom matter. Well unless it’s Carl Icahn, but those only come around about once a year. But on the short/bashing side there are several good twitter followers that will expose stocks in a meaningful way and provide good short entries. A lot of the handles Nate goes over are still valuable today (remember this DVD was produced a couple years ago) but beyond the names this discussion is useful from the educational aspect of detailing how to figure out who to follow and how to trade them. Since the names will always change.

twitter

Next piece is all about the SSR. I’ll admit I got a little bored since I fully understand how the SSR works and the idea of only shorting strength and avoiding grinding etc. But for new traders, or new short sellers Nate does a great job of explaining the SSR and how to avoid getting burned shorting stocks that are under the SSR.

review

The wrap up is a walkthrough of Nate scanning and developing a watch list and a plan for the next day. This is SOLID GOLD, the tickers may not matter and even the scans are not that amazing, (most guys know how to scan for stocks up big) the real value is in hearing Nate think aloud and write his plans. I particularly liked listening to him explain why he was eliminating a stock from watch. The idea of a firm plan is something that has really improved my trading over the last year. And it is infinitely valuable when it comes to becoming a consistently profitable trader. You HAVE to know how to write a plan and execute it. This last section shows you exactly how to do that.

Notes:

How to use twitter for trading
-pumpers
-hit piece writers
Homework and daily scan

Tweetdeck

Tip from me “use a separate Trading only alias” for during the trading day. Instead of your everyday “personal” twitter where you might follow all kinds of random stuff.

Watch the people that trade the stocks you do instead of random stuff like $AAPL, $GOOGL etc.

twitter follows – still current good follows today
@markflowchatter
@tradehawk
@offshorehunter

Here is a list that I follow with an alias
https://twitter.com/tcbtrades/following

Market movers – hit post writers
attached to blog post as image
-Citron
-Muddy Waters
-Street Sweeper
-Good discussion on how to use hit piece writers, even if the names change the strategy is still good
-NIA Lebed – old but still educational

Short Trap
-SSR – Short Sell Restriction
-Does not mean you can’t short, just can’t
short downticks
-Good illustration of putting on an entry under SSR
-Nice Level2 view
-Low floats under SSR can be scary to short, and will often not drop hard
-Avoid shorting weakness or grinding up or down, need to short strength under SSR
-Dont’ fight under SSR, if it works fine, but battles you will get your ass kicked
-Look for para’s not grinding under SSR

Homework
-need to scan every night, just to get a “feel” and confidence
-Best way to keep your finger on the pulse of the market
-Finviz
-Best way to set trigger/entry points
-Good screenshots of scan’s easy to copy
-Review previous day’s scan – I NEED TO DO THIS MORE
-DEVELOP A GAME PLAN AND WRITE IT DOWN

Enjoyed the layout of the trade plan, even though the tickers were old it was cool to hear Nate think out loud on building a plan.

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