Lecture Notes: Trading Insights with Leos Makula 📈

Key Messages

Keep It Simple: Focus on price and volume over technical indicators.
Market Presence: Markets are always there; step out if in a bad situation.
Continuous Learning: Study charts, price actions, and respect risks.
Full-Time Trading: It's possible to trade successfully while working full-time.

Host: Richard Ban
Guest: Leos Makula, 2023 US Investing Championship top performer with a return over 300% so far.
Topics to be Discussed: Trading process, setups, key learnings, his journey.

Born: Czech Republic, currently living in Prague.
Full-time Job: Trading is not his primary profession.
Early Experience: First encountered trading at 13-14 years with "The Intelligent Investor" by Benjamin Graham.
Real Start: Began trading seriously after reading "How to Make Money in Stocks" by Bill O’Neil.
Education: Member of Minini private access, attended Master Trader program, part of LE's Champion team trading.

Played ice hockey and football, positioning as goalkeeper and defensive back, roles with responsibility similar to trading.
Competitive nature and high responsibility roles influenced trading mindset.

Initial Tool: IBD subscriber for screening stocks.
First Principle: Understanding and strictly following 7% stop rule.
Importance of Stop Loss: Bouncing back from respective losses aids long-term success.

Avalanche Effect: Breaking one rule leads to breaking multiple rules, resulting in significant losses.
Key Realization: Major losses could have been minimized by adhering to stop loss rules.
Recovery Phase: Spending significant hours analyzing charts, creating personalized indexes instead of general indices.
2020-2021: Benefited from previous experiences, traded successfully, survived COVID market dip, participated more actively in educational platforms.

Stock: BABA (Twitter of China), bought at base breakout.
Selling Strategy: Took early profits due to lack of confidence in holding longer.
Current Approach: Uses technical levels and adjusts stops as trades progress.

Stock: Gamestop (GME) - Short selling during Reddit saga.
Mistake: Took heavy short without considering the emotional impact; resulted in a 30% portfolio loss.
Learning: Respects market behavior and avoids emotionally driven trades.

Initial Stops: Set stops based on technical areas and moving averages.
Profit Taking: Peeling off profits into strengths and managing the rest with backstops.
Position Sizing: Initial size is 20-25%, with heavy positions potentially occupying 50-70%.

Weekly Routine: Screening stocks, updating personalized index, setting up alerts, weekly market analysis.
Daily Routine: Reviewing focused lists of 20-50 high potential names, setting hard stops, observing market during after office hours.

Dealing with Drawdowns: Step out of the market if overwhelming losses occur; re-enter with a clear mind.
Building Confidence: Start with small positions, gradually scale up as small wins consolidate.
Against Revenge Trading: Avoid trying to regain big losses quickly; focus on consistent strategies.

Market Adaptability: Continuously refine strategies based on market behavior.
Seek Continuous Improvement: Leos’ journey emphasizes practical learning, consistent practice, and disciplined trading strategies.

Brought to you by: De Few Charting, Ultimate Screening Guide, Trading Guide.
Host: Richard Ban
Guest: Leos Makula