A good setup idea can make you millions | stockbee

5/08/2017

A good setup idea can make you millions


If you do not understand the concept behind setup selection right at the start of your trading career, you will struggle for many years. You will get frustrated and will have repeated failures. 

Once you find a profitable setup your trading journey will start. Then the challenge is to perfect the process top trade it  and its executions.

A software tool by itself , or a subscription to stock picking site is not going to make you successful trader. Scanning for stocks is not going to help you much if you do not have good setup. . Preparing elaborate watch lists is not going to help you either. 

Unless you understand setups as key to profitable trading you are unlikely to make much money. This is the most important first challenge in trading.

After doing this for close to 19 years full time and making very good money, if I have to advice a new or struggling trader, what should they do, I will tell them to first define their setup. If they can not do that , it explains their struggle. 

All the  successful trader have well defined setup and then they exploit it day in and day out in favorable market conditions. They have spent years developing these setups and have mastered the nuances of those setups.

If you have well defined setup , you would be able to instantly recognize good opportunities and enter or exit them without thinking. It becomes a automatic task.

If you have well defined setup, you will be able to prioritize ideas and not waste time on marginal stocks or others ideas. Given the number of stocks that trade in the market, this is very critical to success in stock trading.

If you have setup oriented mentality you will ask everyone who posts trade picks or sell trade picks, to find out what setup generated that trade. Find out details about their setup, that way you can generate those ideas yourself.

If you have well defined setup you will know instantly your entry, exit stops rules, risks and not be a clueless person post entry. You will not be asking others what you should be doing. This is very important skill to master.

If you have well defined setup, you will not be easily influenced by any and every new tactic people talk about or sell as the new new thing. Most successful traders I have studied have stuck to their few basic setups for decades. They create variations of them but they do not completely abandon the basic ideas.

If you have well defined setup you don't need CNBC, Cramer, Stocktwits, Stockbee site, or any other distraction. All you need is your software to generate your setup idea and your own guidelines and you can be a hermit.

Setup selection is the only way to eliminate the problem of cognitive load involved in trading.
Sooner you understand that the better it is. Key to "profitable" trading is setup selection.

In the beginning master just 1 or 2 basic setup. It will take you 3 to 6 months to perfect it. Most people who have very well defined setups have taken 5 to 10 years to arrive at it. You just need one or at best two well defined setup ideas to make lot of money in the market.

Spend time finding good setup ideas that work. There are many setup ideas in public domain that work. In the beginning build on others setup ideas, that will help you shorten  your learning curve. 

A good setup idea can change your financial future forever.... A good setup idea can help you make millions....

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