Let’s Dive Into It!
Bitcoin and Crypto Market Updates (Sept 4th)
Monthly closes trying to tell us something?
Last week was a difficult week for crypto with the SEC delaying the ETF decision we essentially wiped out all of the Grayscale lawsuit gains and we remain in this wide range with a clear defence zone below. This NEEDS to hold or we likely see the 20k levels.
More exciting is what’s happening with stocks, specifically the large-cap names and the indexes…. We’re seeing a theme.
APPL — Monthly chart, we have a very grim-looking monthly close against last month. One could argue July’s candle was a hanging man and last month’s close confirmed more downside to come but we did hold the support zone, spiking up. I think the best approach here would be to start looking at the lower TFs on AAPL for short opportunities with some tight entries.
Large Cap Indexes — We had a handing man candle printed last week so all we really need to see this month is a close below the wick of last month’s candle to confirm more downside. That’s a wide margin so again this month I’ll predominantly be looking for shorts on the weekly and daily timeframes.
SPX — Another hanging man… Starting to see the theme? Again it’s tricky here because we wicked up so hard but as I’ve said above I’ll be looking at lower timeframes to confirm some short entries. Confirmation of a longer-term swing short comes once we get below last month’s wick.
NQ — Say no more : )
Jump into the discord to see how we will be trading this over the next month and beyond!
Building Emotional Resilience
Trading isn’t just about numbers and charts; it’s also a psychological battlefield. As traders, we constantly grapple with the emotional rollercoaster that comes with market volatility. One day, you might ride high on a winning streak, while the next, you find yourself in a sea of losses. It’s a journey where expectations meet reality.
The Expectation Trap
The allure of trading often stems from the expectation of financial freedom. People enter this realm with dreams of quitting their day jobs, taking luxurious vacations, and living life on their own terms. However, the cold truth is that trading doesn’t always align with these grand expectations.
Navigating the Emotional Maze
To navigate the treacherous waters of trading, it’s crucial to build emotional resilience. The first step is to acknowledge that losses are an inherent part of this game. Embrace them as learning experiences rather than failures. Just like in life, where we grow stronger through adversity, losses in trading can be the building blocks of future success.
The Power of Realistic Expectations
Setting realistic expectations is another vital aspect of maintaining emotional stability. Understand that markets can be irrational and unpredictable. A single trade, or even a series of trades, does not define your trading career. Think long-term and focus on developing consistent strategies that work for you.
Avoiding the Expectation Pitfall
One common pitfall is clinging to unrealistic expectations despite contradictory market signals. If you find yourself doing this, it’s time for a mindset shift. Be open to adapting your strategies based on market conditions rather than stubbornly sticking to your initial expectations. Flexibility is key.
The Value of Emotional Detachment
Emotional detachment from your trades is a valuable skill. Don’t let wins inflate your ego or losses dent your self-esteem. Every decision you make should be based on analysis and strategy, not fear or overconfidence. Keep your emotions in check, and you’ll make better decisions.
Trading is a journey that requires not only financial acumen but also emotional resilience. By managing your expectations, learning from losses, and maintaining emotional detachment, you can build the mindset necessary for long-term success. Remember, it’s not about instant riches but steady progress and self-improvement on this exciting and challenging trading adventure.