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