Read on Twitter
What I know about the trading style of #FinTwit’s favorite FURU ( @MrZackMorris).
P.S. There’s a ton of stuff I don’t know about Zack’s style since he doesn’t really talk about it too much, but this is what I’ve gathered so far from the GOAT.
Let’s #ZackAttackMFers!
[THREAD]
P.S. There’s a ton of stuff I don’t know about Zack’s style since he doesn’t really talk about it too much, but this is what I’ve gathered so far from the GOAT.
Let’s #ZackAttackMFers!
[THREAD]
DISCLAIMER:
@MrZackMorris is a phenomenal trader and truly an anomaly in this game.
However, Zack’s style isn’t necessarily your style.
I know Zack advocates people to find strategies that work for them.
If you follow anyone blindly then you will eventually lose your money.
@MrZackMorris is a phenomenal trader and truly an anomaly in this game.
However, Zack’s style isn’t necessarily your style.
I know Zack advocates people to find strategies that work for them.
If you follow anyone blindly then you will eventually lose your money.
Zack’s initial style was playing low float small caps but he has since transitioned from that as his account size and his follower count has grown.
The low float king has now evolved into the swing king.
Zack now tends to go heavy in 3-5 swings that have multi-bagger potential.
The low float king has now evolved into the swing king.
Zack now tends to go heavy in 3-5 swings that have multi-bagger potential.
Zack splits his account into two so half is deployed into high conviction swings and half is cash used for scalping.
Zack prefers scalping mid caps and large caps with relative size.
He scalps more aggressively when his swings are red thus making up for any unrealized losses.
Zack prefers scalping mid caps and large caps with relative size.
He scalps more aggressively when his swings are red thus making up for any unrealized losses.
Zack’s style isn’t heavily fundamental nor heavily technical.
Zack rarely looks at charts and if he does then it’s to glance at the daily chart to see the potential range of a play.
Zack is a big fan of reading the tape, using “Level 2” and “Time & Sales”.
Zack rarely looks at charts and if he does then it’s to glance at the daily chart to see the potential range of a play.
Zack is a big fan of reading the tape, using “Level 2” and “Time & Sales”.
For day trading:
Zack likes to focus on plays with good pre-market news and high relative volume.
His style used to be about being the first one on a news play but he has since adapted that style and let’s the market decide if the news is good or not and then gets in on a dip.
Zack likes to focus on plays with good pre-market news and high relative volume.
His style used to be about being the first one on a news play but he has since adapted that style and let’s the market decide if the news is good or not and then gets in on a dip.
For high volume news runners, he looks to get in on the morning flush after opening bell.
Zack isn’t in a rush to get in a play because he knows that there will be dips and getting in on a dip is much safer as it offers better risk/reward- Zack isn’t the type to breakout trade.
Zack isn’t in a rush to get in a play because he knows that there will be dips and getting in on a dip is much safer as it offers better risk/reward- Zack isn’t the type to breakout trade.
Zack looks to avoid buying stocks that are:
1) going into open whilst making new PM highs
2) going into close whilst making new intra-day highs
He likes stocks with good relative strength to show some weakness at these points since the continuation of such plays is more likely.
1) going into open whilst making new PM highs
2) going into close whilst making new intra-day highs
He likes stocks with good relative strength to show some weakness at these points since the continuation of such plays is more likely.
If you notice, Zack likes to circle back and play familiar names.
Why? It’s because he knows the personality of these stocks.
Each stock has a personality and you have to get to know them.
Stocks come into play in cycles so keep a tab on how they move for future reference.
Why? It’s because he knows the personality of these stocks.
Each stock has a personality and you have to get to know them.
Stocks come into play in cycles so keep a tab on how they move for future reference.
What Zack doesn’t do is catch falling knives. He doesn’t go around chasing waterfalls.
Yes, he does buy big dips and flushes but he doesn’t go buying when the selling pressure is strong as hell.
He advises to let the knife finish knifing before going in to play that stock.
Yes, he does buy big dips and flushes but he doesn’t go buying when the selling pressure is strong as hell.
He advises to let the knife finish knifing before going in to play that stock.
As for risk management on day trades, Zack used to have a stop loss below 5% of his entry considering he got in on a dip.
He would then move his stop to break even thus making his trade risk-free.
I’m sure all of his stops are mental ones since he doesn’t want MMs to cuck him.
He would then move his stop to break even thus making his trade risk-free.
I’m sure all of his stops are mental ones since he doesn’t want MMs to cuck him.
For swing trading:
Zack looks for plays that are near the bottom and with significant potential upside.
He doesn’t swing just to sell for pennies. He goes in big, rides the wave and banks hard.
He’s only interested in plays with multi-bagger potential when he swings.
Zack looks for plays that are near the bottom and with significant potential upside.
He doesn’t swing just to sell for pennies. He goes in big, rides the wave and banks hard.
He’s only interested in plays with multi-bagger potential when he swings.
Zack has learnt to think ahead and see the big picture idea.
He wants home runs on his swings and the recipe for this is generally:
- a strong catalyst
- high growth potential
- strong sector hype/momentum
- good range on the play
That’s what delivers the big % gains.
He wants home runs on his swings and the recipe for this is generally:
- a strong catalyst
- high growth potential
- strong sector hype/momentum
- good range on the play
That’s what delivers the big % gains.
Zack is generally picky about what he plays and always lets the play come to him.
Zack doesn’t care about being first to a play- he comes when he believes it’s ready.
He doesn’t care about nailing the bottom and selling at the absolute top.
Zack aims for the meat of the move.
Zack doesn’t care about being first to a play- he comes when he believes it’s ready.
He doesn’t care about nailing the bottom and selling at the absolute top.
Zack aims for the meat of the move.
Zack goes heavy when things are low, accumulates near his add zone, and lets his position sit there until it’s time to take profits.
He lets the MMs play their bullshit games as he has a low enough and stress-free entry.
Zack eats dips, not dicks. He doesn’t FOMO chase.
He lets the MMs play their bullshit games as he has a low enough and stress-free entry.
Zack eats dips, not dicks. He doesn’t FOMO chase.
Swing trading is an art.
It requires you to have the patience of holding through the noise so you can cash in big on the mega run.
When you swing, you don’t need to have your eyes glued to the screen 24/7.
You let the play work, control your emotions and ignore the noise.
It requires you to have the patience of holding through the noise so you can cash in big on the mega run.
When you swing, you don’t need to have your eyes glued to the screen 24/7.
You let the play work, control your emotions and ignore the noise.
A good play will move naturally on its own.
If a play is good then it will move the way it should and it doesn’t need shameless pumping.
Let the play work, be patient and stop hoping on artificial pumps.
If you’re swinging you want a strong and steady upwards move- not a P&D.
If a play is good then it will move the way it should and it doesn’t need shameless pumping.
Let the play work, be patient and stop hoping on artificial pumps.
If you’re swinging you want a strong and steady upwards move- not a P&D.
Zack doesn’t set stop losses in the early stages of his swings.
He does sell in chunks along the way up and he also sets multiple trailing stops so he can capture the larger bulk of the move.
Also, just because Zack is out of a play it doesn’t necessarily mean the play is done.
He does sell in chunks along the way up and he also sets multiple trailing stops so he can capture the larger bulk of the move.
Also, just because Zack is out of a play it doesn’t necessarily mean the play is done.
If a play doesn’t work, he takes the loss and moves on.
Generally the plays that don’t work will be sector-related plays because if the theme dies then the play also dies and there’s no point in trying to artificially pump something that isn’t going to go.
Losses do happen.
Generally the plays that don’t work will be sector-related plays because if the theme dies then the play also dies and there’s no point in trying to artificially pump something that isn’t going to go.
Losses do happen.
The truth is that strategies work in cycles.
That’s why it’s important to have a bunch of strategies up your sleeve because sometimes a certain strategy won’t work so you’ll need to try another.
Learn different styles of trading so you can survive through all market conditions.
That’s why it’s important to have a bunch of strategies up your sleeve because sometimes a certain strategy won’t work so you’ll need to try another.
Learn different styles of trading so you can survive through all market conditions.
Stick to what you’re good at but look to learn everything so you have the tools in your arsenal.
And keep rinsing and repeating a strategy until it stops working and then look to find the new strategy that’s working.
No matter what there will always be something that works.
And keep rinsing and repeating a strategy until it stops working and then look to find the new strategy that’s working.
No matter what there will always be something that works.
Also, when the market is hot take advantage of it, but don’t get overly greedy since hogs get slaughtered.
You have to see things from a short’s perspective too so you don’t overstay your welcome.
Find the trend, ride the wave and capitalise on it.
Do that again and again.
You have to see things from a short’s perspective too so you don’t overstay your welcome.
Find the trend, ride the wave and capitalise on it.
Do that again and again.
Finally, trading is a personal thing hence you should research and play stocks that fit your own personality and trading style.
Don’t slap and market buy a stock because of a Twitter alert.
Take some time, do your due diligence and conduct your own research.
Don’t slap and market buy a stock because of a Twitter alert.
Take some time, do your due diligence and conduct your own research.
Become self-reliant and be able to find your own plays through the different market conditions.
You can’t depend on gurus because once they’re gone you won’t be able to trade since you’re just a mindless follower.
Treat your favorite guru like they’re scanners.
You can’t depend on gurus because once they’re gone you won’t be able to trade since you’re just a mindless follower.
Treat your favorite guru like they’re scanners.
EXTRA NOTES:
It’s worth noting that when Zack decides to swing any catalyst play (especially bios) then he looks to play the run-up because holding into an approval or through catalyst tends to be very risky since these type of things can be “sell the news” events.
It’s worth noting that when Zack decides to swing any catalyst play (especially bios) then he looks to play the run-up because holding into an approval or through catalyst tends to be very risky since these type of things can be “sell the news” events.
