The Simple Setup That Made Lance Breitstein Millions $$$
Hi all!
These are my notes of a video produced by The TraderLion Podcast on YouTube: YouTube Link.
I am not affiliate with them or receive any compensation. The sole purpose of this article is to learn from the best. I hope you enjoy.
Why you need to live and breathe and trade with the trend.
How to define trends.
How to build trading rules around them.
What causes trends to begin or end.
Practical applications of how to use this knowledge and implement it into YOUR trading.
Many cliches in trading are nonsense, but no cliche held up strong than “The Trend Is Your Friend.”
Lance Breitstein, “On my best trades, my best trades immediately went in my favor and my absolute worst trades and biggest losses, those were all trades where I was fighting the trend. They essentially never ever went in my favor.”
Lance’s study of trends transformed his trading and helped him become #1 8-figure trader at Trillium. This is why this is nothing short of a love story.
Best trades go in favor because recognizing the opportunity just ahead of the rest of the rest of the market.
Trading with the trend increases win rates.
Trading with the trend increases the reward.
Trading with the trend minimizes the drawdowns and heat you need to take on a position.
Most trades can be structured properly to be with the trend.
Anything generally moving higher or having an upward slope I’d consider to be trending higher but we can then define more nuanced subsets within that.
Each of these are applicable to all timeframes:
Making higher highs and higher lows OR lower lows and lower highs.
Holding above (below) VWAP.
Holding above (below) a moving average.
Holding above (below) prior bar highs (lows).
Holding above (below) trendline.
Holding above (below) a reference price
If higher timeframe is trending higher (lower), then trading with a lower timeframe counter trend lower (higher) IS STILL WITH THE TREND.
It is essential to wait for the countertrend during mean reversion trading.
“I will never be short (long) if a stock is steadily holding above (below) VWAP unless it capitulates.
“I will not take trades in rangebound or consolidating stocks”
I will size 25% bigger when the intraday and daily trends are aligning.”
Breaking News or a Fundamental Catalyst
Breaking Out of Consolidation or Ranges
Following the Exhaustion or Capitulation of Other Trends.
Huge volume and price exhaustion.
After multiple large legs.
Breaking News or Fundamental Catalyst Counter to Trend.
When No Consolidation Occurs.
Waiting for the counter-trend to be in place.
Stubbornly thinking he was smarter than the market by playing analyst and not listening to the price action.
7-figure huge gainer (2/23/21)
Going WITH THE TREND When there is fresh news.
Going WITH THE COUNTER-TREND after the turn.
See video for additional content.
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Disclaimer: This article contains the views, opinions, and recommendations of the author. Any information provided may not be relied on as investment, financial, legal, tax, regulatory, or any other type of advice.
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