Anthony Patrick, Founder of Arete Trading, is focused on helping people build wealth through trading. In this episode of How To Trade It, Anthony shares the meaning behind the name of his company, his top down approach to trading, and how to make money even in a bear market. You don’t want to miss it!@AreteTrading is focused on helping people build wealth through trading. Learn more in this episode of How To Trade It. #AreteTrading #equities #patternrecognition #topdownanalysis Click To Tweet
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You’ll want to hear this episode if you are interested in…
- [00:43] The meaning behind the name
- [07:50] Managing significant risk
- [14:35] Anthony’s personal strategy
- [16:43] How to find stocks to trade
- [21:35] Candlestick patterns
- [24:50] How to respond to sideways movement
- [40:27] Continuing to make money in a bear market
The Name Matters
When Anthony started his business, he didn’t want it to be about him. Instead, he wanted to focus on educating and showing people that you need purpose and process, in order to be a successful trader. “Arete” is a Greek word that essentially means excellence of any kind. It is tied to the idea of fulfilling a purpose or function or living up to one’s full potential. This mentality lends itself to continuous learning and constant improvement in both trading and daily living.
Anthony suggests that you build your watchlist by first determining what kind of trader you are or want to be, and then looking at the leaders. He’s a big believer in liquidity. He begins his search for potential buys by looking at the best names, determining how they are doing at the current time, looking at where volume is going, etc. Anthony builds his watchlist from the top down. Essentially, he looks at the Index, the Sector, then the Stock. At that level, he can drill down, and he often finds that his performance and probability of being accurate increases.
Candlesticks have been around since the 1700s. They were created because somebody was trying to get an edge as a rice trader. When you see a wick, you need to wrap your head around the fact that it represents price rejection.
The Bear Market
It’s not a popular opinion, but Anthony truly believes that making money in a bear market is fairly easy because you have the option and ability to short your stocks. You basically do the inverse of what you would do in a bull market. You let the stocks run to the 50 day and then start shorting them after looking at different bottoming patterns. If you don’t want to get involved in the short sale, you can do exceptionally well buying utility stocks or real estate investment trusts. There are certain Sectors that do extremely well in a bear market and those are usually the yield bearing names.
Resources & People Mentioned
- Arete Trading’s FREE Newsletter
- Way of the Turtle by Curtis M. Faith
- Market Wizards by Jack D. Schwager
- Confessions of a Stock Broker by Andrew A. Lanyi
- Momentum Masters by Minervini, Ryan, Zanger, Ritchie II
Connect with Anthony Patrick
- Website: http://aretetrading.net
- YouTube: https://www.youtube.com/c/aretetrading
- Twitter: https://twitter.com/AreteTrading
Connect With Casey Stubbs
- Website: https://caseystubbs.com
- YouTube: https://www.youtube.com/TradingStrategyGuides
- YouTube: https://www.youtube.com/caseystubbs
- Twitter: https://www.twitter.com/caseystubbs
- Facebook: https://www.facebook.com/TradingStrategyGuides
- LinkedIn: https://linkedin.com/in/caseystubbs
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