Just finished watching this outstanding Joe Fahmy video. This is one of the best videos I have had the pleasure to watch in quite a while. If you want to speed up your trading education make sure to watch it. I agree with almost everything he has to say, but consider myself more of a position trader focusing on longer holding periods. I also consider myself a low frequency trader as this better suits my personality. That being said, his wisdom and insight applies to all time frames and his approach which is influenced by Mark Minervini is simply rock solid and extremely sound. There is no fancy stuff involved. Quite the opposite is the case. Lots of common sense, no secrets, a deep understanding of trading psychology and a love for sifting through thousands of charts every day in order to get a feeling for the overall market and to find new winners with charts making new all time highs or displaying relative strength.
He addresses key factors traders should pay attention to:
- Working hard and paying close attention to a stock’s behaviour on days the market is getting killed.
- How is a stock holding up relative to the overall market?
- Is a stock making new highs while the market is going sideways or down?
- What are typical character traits of leaders?
- Relative strength analysis as opposed to using the technical indicator RSI.
- Focusing on trading the markets from the long side.
- Focusing on healthy market periods.
- Learning from successful traders.
- Cutting your losses.
Again, do yourself a favour and watch this awesome video presentation Joe Fahmy gave at SMB Capital.
If you really think the stock is going to make a big move […] just buy the stock. If you think the stock is going to drop, just sell it. – David Ryan
My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Buenas noches!