A trader realized that chasing analyst predictions and news noise was killing his trades. When he watched institutional order flow in SPY and Bank of America, he saw what big money actually does versus what retail traders predict. He now focuses on trade setups instead of predictions.
Chapters
You've got trade setups versus trade predictions, and there is a great big distinction with this. We go through our lives with our own biases and beliefs that keep us alive. Now, when I got into the market, it— I, I had a red pill moment within the first few months of trading. There were a couple things that were going on, is I figured, well, I started out, it's like I want to be A fundamental trader, and then I wanted to be a technical trader. And then you wind up seeing analysts—they're like these earnings are going to blow out, and then the stock crashes. All it is is confusion. And how does that help you trade? It actually doesn't. So turning off the news for me was was helpful. But the other thing, my red pill moment is when I looked at the market and you looked at, for example. The indices, the SPY, and you looked at different stocks and things like that. Well, out of the blue, it's like the SPY dropped 5 points or 7 points. And what it was is it was just a screen that every massive trade that the institutions were doing was showing up on the screen. And I saw a 50,000-share trade on Bank of America at a specific price, so I fainted. Tell me when there's half a million. So I fainted again and dragged myself up to the desk. And that to me is my red moment because it finally made sense. But what made perfect sense was the disconnect that this is what the institutions are doing versus this is everybody with opinion and the news, right? It's always retail traders. In this webinar, what we're going to do, we're going to learn about why predictions are psychological and emotional commitments that negatively affect our trading, how they wreck trade management and how news, social media sentiment slip by us into our decisions.
