Learn the language of setups | stockbee


Learn the language of setups

In your trading journey you will have significant breakthroughs once you learn the language of setups. Profitable traders think in setup language while novices think in individual stock term.

In a day you will see several posts by members about individual stocks or emails about individual stocks. If you actively participate in a social media site like Stocktwits, you will see several posts on individual stocks.  Something catches their fancy and or they know about a particular stock and they are enamored by it and want to know whether it is good buy or not. That thinking is not much of help.

Setup selection is key to successful trading. Setup selection allows you to condition your behavior. It allows you to develop your procedural memory. It allows you to automate your thinking. Setup oriented thinking is process based thinking. It is how do I find this kind of stock again and again kind of thinking. It is about ways to catch fish.

When it comes to setup selection your time frame is very critical. A setup that is good for day trader may not be good for swing trader. A swing trading setup may be extended setup for position trader.

Over next 30 days we will look at vast range of setup ideas. Once you get in to details of those setups you will learn the basic building blocks of designing your own setups....

Starting from 1St December there will be extensive discussion of various kinds of setups used by different traders.It will be a month long series of posts and most days multiple posts during the day on the members site. The setup series will give you large number of ideas that you can incorporate in to your trading

Study of setups is key to developing methods. A extensive understanding of setups would give you a life long foundation to design your own trading setups based on your personality and time horizons.

Once the series is over the entire series of posts would be compiled in a separate section in learning areas 

Vehicle selection +setup selection+procedural memory development+self efficacy beliefs+situation awareness+risk management =Profitable trading

Over next few months we will look at each of the factor in detail...


joe blow said...

Thanks for sharing Pradeep! This sounds like an excellent topic for a series of posts. I check your site occasionally but think I may be a frequent visitor in December, as I am interested in learning more. Thanks again.

rmike said...

Thanks Pradeep! The sharing of your invaluable insight into the trading process is much appreciated and eagerly awaited, as always :).