I credit my friend Ram for this contribution. It is well
worth sharing….
A good setup idea
can change my financial future forever.....
If I do
not understand the concept behind setup selection I will
struggle for many years.
Scanning for stocks is not going to help me. Preparing elaborate watch lists is
not going to help me. Unless I understand
setups as key to profitable trading I am unlikely to make much money.
IBD method might be about momentum/growth but
ultimately it boils down to setup and IBD has very strictly defined setups.
Same way any successful trader has well defined
setup and then they exploit it day in and day out in favorable market
conditions.
If I have well defined setup, I would
be able to instantly recognize good opportunities and enter or exit them.
If I have
well defined setup, I will be able to prioritize ideas and
not waste time on marginal stocks or others ideas.
If I have setup oriented mentality. I will
ask everyone who posts trade idea to find out what setup generated that trade.
If I have well defined setup I will
know instantly your entry, exit stops rules and not be a clueless person post
entry. I will
not be asking others what I should be doing.
If I have well defined setup, I will not be easily influenced by any
and every new tactic people talk about or sell as the new thing.
If I have well defined setups I would
not be making new rules and adjustment every day.
If I have well defined setup I don't
need CNBC, Cramer site, or any other distraction. All I need is software to
generate my setup idea and my own
guidelines
Setup selection is the only way to eliminate the
problem of cognitive load involved in trading.
Sooner I understand the better it is. Key
to "profitable" trading is setup selection.
In the beginning I must master
just 1 or 2 basic setup. It
will take me 3 to 6 months to perfect it.
I just need one or at
best two well defined setup ideas to make lot of money in the market.
A good setup idea can change my financial
future forever.....
No comments:
Post a Comment