10 Steps to Profitable Trading in 2024 | Ryan Pierpont
Jan 6, 2024
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Ryan Pierpont, top performer in the US Investing Championships, shares his 10 phases of evolution as a trader. He emphasizes the importance of passion, perseverance, and risk management. Topics include meaningful work, buying breakouts, risk management, sympathy plays, and developing the right mindset.
Choose a trading style that aligns with your personality and continuously improve your skills.
Develop market awareness and adapt to changing market conditions.
Have a well-defined plan, exercise patience, and practice discipline.
Focus on high probability setups, learn from mistakes, and constantly evolve strategies for long-term success.
Deep dives
The Evolution of a Trader
The podcast episode explores the journey and evolution of a trader, specifically targeting newer traders. The speaker shares personal experiences and pitfalls to avoid, emphasizing the importance of passion, choosing a trading style that aligns with one's personality, and the need for continuous learning and improvement. They discuss the significance of understanding why one chooses to trade, the importance of market awareness, and the necessity of risk management and discipline. The episode also highlights the need for patience, a well-defined plan, and the ability to adapt to changing market conditions.
Buying Late and Ignoring Stops
The podcast addresses common novice mistakes, such as buying breakouts when prices are already extended, ignoring stop-loss levels, and inexperienced traders having a tendency to rush into trades. The speaker emphasizes the importance of buying closer to entry price levels and setting logical stop-loss levels to avoid larger losses. They also stress the significance of reviewing trades, having a well-defined plan, and practicing discipline.
Market Awareness and Risk Management
The podcast episode discusses the need for market awareness and the understanding that not all strategies work in every market environment. The speaker emphasizes the importance of adapting to changes, observing market trends, and avoiding the urge to catch every swing in the market. They highlight the need for risk management, patience, and a series of trades approach, focusing on the long-term success of trades rather than individual trades. The episode also emphasizes the significance of having a well-defined plan, maintaining discipline, and performing post-analysis of trades.
Plan and Patience
The podcast episode emphasizes the significance of having a plan and exercising patience in trading. The speaker explains that having a plan with defined buy and sell rules, as well as a routine for market analysis and trade review, is crucial for long-term success. They stress the importance of patience in waiting for high-quality setups and reducing impulsive trading. The episode also addresses the need to eliminate emotions, focus on risk management, and give trades the benefit of the doubt in favorable market conditions.
Importance of Patience and Evolution in Trading
In this podcast episode, the speaker emphasizes the importance of patience and evolution in trading. They discuss the need to adapt to market conditions and constantly refine one's trading plan. The speaker shares personal experiences and insights, highlighting the need to focus on the main driver of trading: price. They stress the importance of simplicity in chart setups and trading strategies, avoiding the clutter of indicators and excessive analysis. Additionally, they discuss the significance of position sizing and risk management, encouraging traders to be mindful of their risk tolerance and to scale up their positions as confidence and account size grow.
Key Points for Successful Trading
The podcast episode highlights several key points for successful trading. One main idea is the importance of focusing on high probability setups and being selective in trades. The speaker emphasizes the value of waiting for the right environment and setups, rather than trading impulsively or out of FOMO. Furthermore, they discuss the need to develop a positive mindset and avoid being influenced by noise, opinions, and news. The episode also emphasizes the significance of learning from mistakes, keeping a trading journal, and constantly evolving one's strategies and approaches. Finally, the speaker emphasizes the need for discipline, routine, and persistence in order to achieve long-term success in trading.
The Power of Breakout and Failure Setups
The speaker in this podcast episode highlights the power of breakout and failure setups in trading. They discuss the potential opportunities presented by false breakouts, followed by price resetting and building a new structure. The speaker shares insights on how to identify and take advantage of these setups by patiently waiting for the right conditions and setups to align. They emphasize the importance of simplicity in analyzing price action, focusing on the main driver of trading. The episode also touches on the concept of sizing positions, stressing the significance of finding a personal balance between risk tolerance, position sizing, and trade expectations.
Managing Expectations in Trading
The podcast episode delves into managing expectations in trading. The speaker suggests having realistic expectations and understanding that not all trades will be winners. They encourage traders to focus on risk management, accepting that losses are part of the trading journey. The episode stresses the importance of keeping a positive mindset and learning from failures. Additionally, it discusses the trade-off between batting average and risk-reward ratio, highlighting the need to prioritize risk management rather than aiming for a high accuracy rate. The speaker also encourages traders to be patient, wait for high-quality setups, and to avoid becoming too influenced by short-term market fluctuations or noise.
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Ryan Pierpont is a growth stock swing trader and was a top performer in the US Investing Championships of 2020 & 2021 with an astonishing combined return of 1,551%. But he didn't start off as a knowledgable trader able to put up huge returns. He had to go though his own evolution as a trader, one that he shares during today's video. Ryan lays out the 10 phases he went through and how to speed up your learning curve to become a profitable trader in 2024.
Phase 1: Curiosity
Phase 2: Experimenting
Phase 3: Blind Follower
Phase 4: Learning Your Edge (Technicals)
Phase 5: Fundamentals
Phase 6: Account Churn
Phase 7: Market Awareness
Phase 8: Risk Management
Phase 9: Plan & Patience
Phase 10: Constant Evolution
Follow Ryan Pierpont on Twitter/X: https://twitter.com/RyanPierpont
This presentation was filmed on June 3rd of 2023 during the TraderLion Conference.
Watch on Youtube: https://youtu.be/KQRuUWSZvLE
Enjoy!
- The TraderLion Team
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Timestamps:
00:00 - In this Episode...
00:42 - Evolution of a Trader
03:53 - Phase 1: Curiosity
06:24 - Phase 2: Experimenting
08:38 - Phase 3: Blind Follower
12:08 - Phase 4: Learning Your Edge (Technicals)
14:57 - Phase 5: Fundamentals
19:15 - Phase 6: Account Churn
33:27 - Early Struggle Examples
40:27 - Phase 7: Market Awareness
43:08 - Phase 8: Risk Management
46:44 - Phase 9: Plan & Patience
51:08 - Phase 10: Constant Evolution
57:20 - Putting It All Together
1:04:27 - Key Takeaways
1:14:02 - Finding High Potential Stocks
1:20:06 - False Breakout Setups
1:22:24 - Simplifying Your System
1:29:18 - Position Sizing to Maximize Returns
1:40:38 - Learn More From Ryan Pierpont
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