The Last Time This Happened, 80% of Traders Blew Their Accounts
$SPX saw one of its biggest selloffs in months last week despite strong jobs numbers. On a macro scale, continued tensions in the Strait of Hormuz and supply chain issues from that uncertainty are still having sporadic, adverse effects on markets. It's still too soon to tell what will happen next, but I have a few scenarios that I want you to keep in mind (Scenario #3 will blow your account):
Scenario #1: Bullish Continuation
$SPX reclaims 7500 with a strong recovery from tech leading the charge. Bears who got overly excited get squeezed out and help push the market higher towards 8000. Bears try to call another top as $SPX backtests previous ATHs only to get squeezed again; support near 7600 is just too strong.
Scenario #2: Bearish Reversal
$SPX loses 7370, backtesting 7334. Bulls can't overcome the selling pressure as continued fears of an unraveling AI trade begin to mount; tech continues to slide lower, dragging the rest of the market with it. When 7334 fails more people begin to panic sell: the entire market slides another 300 pts toward 7059.
Scenario #3: Chop to Pop
This is the worst possible scenario for most day traders: an extended period of consolidation. With no follow through from tech and an even match up between bulls and bears, $SPX consolidates in a 170 pt range between 7334 and 7500. This consolidation period may last up to a few weeks or a few months: regardless, 80% of traders are going to give back their gains by being too impatient. Once the dust settles and impatient traders' buying power is exhausted, $SPX breaks out and moves towards 8000.
It's too early to call a top or a bottom, and you shouldn't care about trying to. Good traders are reactive, not predictive: have a couple scenarios in mind, take note of key levels, and execute accordingly. Your desire to make money needs to be greater than your desire to be right if you want to last in this game.
TRADE PLAN for Jan 2 📈
$SPX if it gets back through 6900 we can see a new all time high by next week. SPX setting up for 7000 this month. Calls can work above 6880 for today
$MU setting up for 300 if it gets through watch it run to 350-360 this year. Calls can work above 292 for today
$TSLA touched 462 late last night now near 455. TSLA to 474 should come again this month if it holds above 450. Calls can work as long as 450 holds.
First trading day of the year. Let's start off on the right foot. Good luck everyone! 🫡
TRADE PLAN for 2026.
1. If you have a small account, WAIT for panic in the market THEN buy. This is how you grow a small account into a big one. Day trading is NOT about scalping for $50 a day. It's impossible to grow an account like this.
2. Sell into strength. Never buy when everyone is buying. This is when you scale out.
3. Have well defined targets and goals. When you see green, everyone gets greedy and wants MORE. Don't be like everyone else and get caught holding the bag. Sell at your targets and wait for the next best opportunities.
4. Most importantly, respect money. Just because you have profits doesn't mean you jump into random trades. Waiting is 80% of trading.
Last day of the year, i was chillin, and realized how much more i can do with my time. Mental toughness always been my strong suit, finna turn it into a tuxedo
“Ignoring distractions is like manipulating yourself — but confronting them honestly, like looking in the mirror and clearing them away, is truly freeing.”
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