TWTR for Next Week

Looking for TWTR to swing for the fences on 02/05 earnings. The image and video ads on feeds will continue to increase revenue. Very effective.

Also, the Superbowl is going to be big for Twitter.

Stop Loss

Fixing leaks.

  • Every long order is opened along with a stop loss to sell (close).
  • Every short order is opened along with a stop loss to buy (close).

Allows for taking shots and be wrong without the mistakes and emotions that usually make you hold onto losing trades that steadily accumulate heavy losses.

High Liquidity

Stick to underlyings with high liquidity.

  • AXP extremely liquid where a market order will stay within the penny of the bid ask spread.
  • LE was not liquid where a relatively large market order moved the spread by 20 cents creating a bad trade location of 20 cents further than the current action. This is similar to over playing 72o preflop and hoping to hit 2 pair to take the pot.

Market Trends

A couple of rules to help improve in the game.

  • Do not ever go against big trends of /ES /NQ /TF. As a reminder it has helped in profiting off VZ, T, AXP, DFS, GPRO, TWTR, LE.
  • Watch the first 15-30 minutes of the opening, then react based on whether the markets will be trending up or down. Acted too easily on BABA, DAL, and got burned.

The Grind

It is perfectly okay to have the feeling of being stuck in the mud. Whether it is a few days, a few weeks, or a few months, it does not matter as long as you keep doing it to play it well.

The three items to stay focused on:

  • Trade location
  • Volatility
  • Increase occurrences

Things We Underestimate

Whenever you take on new projects, here are a few points to wrap your thoughts around that will prevent you from quitting:

  • Sample significance – there is a difference between 10 repeated actions verses 10,000 repeated actions
  • Losing streaks – there will always be losing streaks, or things not going your way
  • Risk tolerance – you must be willing to lose a certain percentage of something before you can start gaining
  • Work required – never stop learning, never stop improving on using the tools that are readily available to you

Enjoy the Process

Everything we do each day is to reach certain goals. As long as we learn to love the process no matter how much of a grind it may seem, we will reach our goals and accomplish more in between.

In poker, good players say “don’t be results oriented.” If we lose with pocket aces after pushing all-in preflop, then we have already WON because that is the right move. Know that winning is not the end; making the right move on every play IS the end.

Enjoy the process of getting to our goals, and embrace it.

Tackling the Mornings

Have a bottle of water by the bed, and drink it every morning. Your body needs water after dehydrating itself through a full night’s rest.

Water will help jump start your mornings.

Have a Clear Path

Will, drive, and motivation gets you far. But with no clear path to take, you will never move forward.

In front of you, there are many doors. Behind each door are opportunities of a lifetime. However, most people choose not to go through any doors, and they stay right where they are. Stagnating.

Pick a door, pick something and just stick to it. No matter which door you choose, your life will move forward.

Write down a list of goals you want to get done this month. It could be something simple, such as:

1) Shoot 10 free throws without missing
2) Finish language lessons

Your motivation must be coupled with clarity of thought. Your gains and achievements are directly proportional to the amount of time you spend pursuing goals you are absolutely clear about. So write them down.

Next, commit specific daily activities to the goals you wish to accomplish. Every day will be a step closer to what you want to achieve. Move forward with a greater sense of direction.