Top traders ignore entire sectors that drain their edge. Biotech costs a 20-30% win-rate hit and nets only $1-2 million across hundreds of tickers, so this trader auto-deletes biotech signals. Energy is similarly inefficient, leaving focus for setups that actually work.
Trading is all about supply and demand. You have to be really strict on the criteria to prevent from mistakes like that. There's two sectors you cannot trade. First of all is biotechs. Biotechs is very different. The winning percentage drops by about 20 to 30%. Every time when I see a gap-up short on the scanner, I delete that. I don't want to see it. Now I have traded biotechs for many, many years, 300 to 500 tickers. The net profit of biotechs probably maybe around $1 to $2 million on 500 tickers. So it takes a lot of mental energy. It's just not worth it. The second one is the energy sector. That doesn't work out. Gap up short, bounce short, and ideally first red day.
