Using the TMAD Finance Newsletter Effectively

Educational Content

Hi everyone,

Many of you asked how to use the newsletter, so we created a video for you and here’s a dissection of the video. Our finance newsletter is coming out in an hour.

Key Steps

Understanding the Newsletter Structure 0:31

• The newsletter begins with educational content relevant to current market conditions.

• Focus on liquidity issues and other significant market events.

• If no relevant educational content, the newsletter will shift to earnings reports.

Analyzing Earnings Reports 1:14

• Review earnings reports for major companies, focusing on option flow and expected moves.

• Understand that trading earnings can be risky; use the information for guidance rather than certainty.

Identifying Demand and Supply Zones 2:47

• Recognize demand zones as areas where buying interest is high, often leading to price bounces.

• Supply zones indicate resistance levels where selling interest may increase.

Setting Stop Losses 3:44

• Always set stop losses slightly below demand zones to protect against significant losses.

• For high-priced stocks, consider a stop loss of $5-$7; for lower-priced stocks, a $1 stop loss may suffice.

Monitoring Market Conditions 5:59

• Be aware of overall market conditions when trading individual stocks.

• Avoid going long on individual stocks if the market is at resistance.

Utilizing Trade Ideas 6:53

• Review trade ideas provided in the newsletter, especially during earnings weeks.

• Consider waiting for breakouts before entering trades.

Understanding Chart Indicators 8:05

• Familiarize yourself with chart indicators such as entry points (green) and supply levels (blue).

• Recognize that supply levels may create headwinds for upward price movement.

Respecting Stop Losses 9:46

• Always respect stop losses to manage risk effectively.

• Understand that investing based on valuations is different from trading strategies discussed in the newsletter.

Cautionary Notes

• Trading involves risks; never invest more than you can afford to lose.

• Earnings reports can lead to unpredictable price movements; exercise caution.

Tips for Efficiency

• Regularly review the newsletter to stay updated on market conditions and trade ideas.

• Use the provided charts to be aware of the SPX demand and supply zones for better making when taking individual stocks trades, or when trading SPX/ SPY.

• Engage with the community on Discord for real-time trading insights.

Link to Loom

https://loom.com/share/a6b633425b074afd9847b769949da54c

Ask us if you have any questions,

Team at TMAD