These are the concise notes from Jay Oliveira’s podcast with Richard Moglen (part 2). For the full notes, click here.
1. Expectation Breakers: Adapt Quickly
If a stock isn’t acting as expected, take action—adjust your stop-loss, take profits, or exit the trade. The market is designed to deceive most traders, so develop a personal strategy to manage risk effectively.
2. Relative Strength & Market Leaders: Say Objective
Detach emotionally from stocks. The market changes fast, and flexibility is key. Observe leading stocks and be ready to buy or cut losses when needed.
3. Market Feedback: Read the Signs
If most breakouts fail, the market isn’t in your favor. Take losses early, reassess, and adjust your approach—waiting for better conditions can save you money.
4. Lose the Ego: Focus on Price Action
The market doesn’t care about predictions. Let go of your ego, be willing to adapt, and focus on real-time data instead of trying to prove yourself right.
5. Don’t Argue with the Market
The market is always right. If it moves against you, recognize mistakes quickly and adjust rather than resisting and losing more.
6. Stop-Loss Strategy: Intraday vs. Closing Basis
Choose stop strategies based on market conditions. Set hard stops below key levels, but also assess orderliness and volume before making decisions.
7. Growth Stocks & Character Changes
Growth stocks may recover before the market does. Watch for signs of strength in individual stocks as an early signal of a new bull trend.
8. Follow Market Leaders for Direction
Leading stocks often signal market trends before indices do. Study them to anticipate broader market movements.
9. Tight Weekly Closes: A Key Indicator
Tight weekly closes at the bottom of a base suggest institutional support. Analysing weekly charts helps identify strong setups.
10. Key Stock Metrics: What Matters Most
Look for accelerating revenue and earnings growth, strong return on equity (ROE above 17%), and increasing institutional ownership.
11. Buying Pullbacks: Finding the Right Entry
Buy when a stock bounces off a key support level like the 21-day moving average. If it dips below and recovers, that could be an entry opportunity.
12. Wait for the Right Pivot
Avoid jumping into choppy stocks too early. If the market is weak, patience can prevent unnecessary losses.
13. Sister Stocks: Strength in Groups
When multiple stocks in the same sector show strength, it confirms the trend. Look for leaders in strong groups.
14. Shorten Your Learning Curve
Study past winners, recognize repeating patterns, and be patient. Successful trading is a long-term process that requires discipline and continuous learning.
15. Keep Expenses Low & Remove Stress from Trading
Having a side income can reduce pressure, allowing you to focus on growing your trading account without financial stress.
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