2 Things that I am adding to my Trading
Darvas also had these 2 elements in his trading.
"If it's not your experience, it's not your truth." - Thomas Cambell
My journey has been a short one.
And I am still trying to figure it out, believe it or not.
Today, I will tell you about some recent realizations I have had. And some changes that I am going to make in my trading.
Themes and Tailwinds:
I am a technical guy and, therefore a price action guy.
Price is God for me.
Only the price pays.
I have almost absolutely no regard for the fundamentals of the stock.
Not because I don’t care about the fundamentals.
But because I believe that price discounts everything.
(plus I also don’t know how to read fundamentals. That’s there. Yes, LOL ing? Me too).
But,
I am going to make some changes here going forward.
What is that?
Start paying attention to the chatter around the fundamentals and themes.
Things like:
Industry/sector tailwinds.
Longterm Theme/Story. etc
Now these are much simpler and easier to grasp from the general chatter (along with the actual price move of course). On top of that, my HPA community has a lot of folks that actually understand the shit. So I am gonna lean more towards their expertise.
But mind you these aren’t borrowed convictions at all. I have experienced and seen enough during the past 2 years for me to believe this.
Some of the sectors/industries that have done well due to tailwinds/themes etc are smart meter players, Electronic manufacturers, Shipping, Defence, PSUs, Railways, etc.
I don’t need to understand the fundamentalsfor this.
I just need to be aware enough that the investing community has identified this and look for confirmation in the price.
This is within my capability.
Volume Confirmation
The market has been sideways since 12th September.
And guess what?
My account has been flat.
But there have been enough opportunities around for an account to move.
I haven't been able to capitalize at all.
why?
For starters, my setup (HTF) isn’t doing well as compared to when the markets were trending.
But the truth is that I also haven’t been able to catch winning breakouts.
The ones I traded have shown poor follow-through.
The ones that are following through are those that I did not trade.
So this led me to analyze what the fuck is going on.
And what’s the one thing that differentiated the setups that followed through from the ones that did not?
And the answer was mighty clear.
Volumes on the Breakout.
Clear.
So the setups that were following through. All had humongous volumes on the Breakout.
Some of which I thought were breaking out prematurely (1T or 2T) but ripped up like there was no tomorrow, unsurprisingly had biiiigg volumes.
I always knew, as a technical analyst how important volumes were.
But it took me a sideways market and a flat account curve to realize and experience this fully.
You see,
Experience sticks.
Here are some examples of my breakout trades that are languishing (hoping for a follow-through when the market does).
Here are some examples of Breakouts that ripped (all were on the Red list):
The one name that I traded which followed through was Infibeam.
And guess what?
It had humongous volumes
That's all for today.
Change is the only constant man.
As a trader, you have to keep evolving every single day.
Trading is lonely, and that makes it even harder.
But you don’t have to do this alone.
Having a friend, a mentor, and a community makes it a lot easier.
If you want a community to grow with, consider joining my group, Homma Private Access (HPA).
Homma Private Access membership:
HPA is a subscription-based educational service (on WhatsApp). Benefits include:
Daily Market Breadth, Momentum, Relative Strength and Sector Rotation Update.
Access to my scanners, dashboards, Trading view indicators and charting layouts.
Weekend hourly session and Q&A.
Live updates on my portfolio and the trading setup rationale.
Live updates of key setups I am tracking.
Yearly membership of 12000/- INR only.
UPI payment & WhatsApp @ 9481506784
I also teach Trading from absolute basics all the way to the advanced level:
The Sakatas Homma TA masterclass for beginners:
A monster course 8-10 hours. Hourly sessions on weekends. Twice a year.
Please register for the next batch using the link below.
https://docs.google.com/forms/d/e/1FAIpQLScfnQA1w9WDTtTAPEHIqzkS9jhRSZFA1BZXuWRZ5JPZ3Qfu8g/viewform
Watch my 1st session of the Autumn 2023 batch.
See you soon
Yours
Sakatas “evolving” Homma.