Technical Analysis
Knowledge Branches
risk & money management
risk / reward ratio
stop loss / take profit
ratio of how worth it is it
also wise to consider entry conviction
crowd psychology
"not one who chases, but one who knows what people are chasing"
mindsets & psychology
"if we place a bet in a gladiator, we immediately think the prospect of the gladiator we put to go higher a lot"
dangerous if
great if
place on the right stock
place on the wrong stock
tips to overcome
analyze stocks without feelings
before buying a stock = rational & emotionless
after buying a stock = highly biased emotions
create and follow a logical plan
focus on the setup, not the result
result
"I want to make 10jt in one trade"
setup
"I want to trade with 3 bars/patterns/etc"
with an exception of
be agile if the setup started to disappear/don't' work
this will make a trader to see many opportunities, while there are none
this follows the mindset of measure 1000 times, cut once
"retreat is a perfectly legitimate military tactic"
it's okay to take small loses than big loses
as long as it's part of the plan, plan your trade and trade your plan!
"fear will ruin you (cutting too early), bravery will also ruin you (staying on a losing trade)"
be neutral with emotions!
complete rationality
achievable by
following setup
plan your trade, trade your plan
plateau money management
concept
goal = money * 2.5
after reach the goal = withdraw the initial money, and set new goal with the same format
example
goal 1 = Rp. 3.000.000, initial: Rp. 1.200.000
goal 2 = Rp. 4.500.000, initial: 1.800.000
ideas to keep in mind
let the market lead
market moves in cycles
market moves irrationally
people react the same reaction
most people are irrational
discipline before vision
"do you want to be right? or to make money?"
focus on minimizing risk
be discipline with your setup
never chase a trade
wait for a setup
if occurs, execute without hesitation
avoid over optimistic, and over pessimistic