Threadguy explains why your body reacts to a big trade like it's going into battle
“The hour between dog and wolf is this concept of ancient Roman gladiators. Right before they would go into battle or an NBA player or a quarterback, right before you go into battle, your body transforms”
“Your heart rate picks up, your testosterone literally boosts, your blood pressure starts dialing, it courses through your veins and you start to like, your body completely transforms and prepares you for battle. Like, you have like a physical transformation that happens to you when you're about to go into battle, your adrenaline starts, your heartbeat, like, it's like ready for war, right? It tenses your body up for war”
“In like ancient Eastern culture, they refer to that as the hour between dog and wolf and so the guy that wrote this book is a psychologist but he used to be a trader on Wall Street. He was a trader in the dot-com bubble. He basically studied traders throughout the course of the entire bubble of the dot-coms and the crash”
“What he found during this process is that while most people think trading is a mental game, right? You have to know your entry, know your exit, it's a mental game. When you're getting ready to enter a trade or you're thinking about entering a trade or you're preparing for a Fed meeting or you're preparing for like a big news event. Your body goes through the same transformation as it would if you were about to fight to the death in the Roman Colosseum”
“It goes through the exact same transformation. Your blood pressure starts coursing, your testosterone boosts, adrenaline starts ripping, all of the blood flows to your brain, outside thoughts are like narrowed, you like super hone in on what's happening and you have a physical body transformation before you enter a trade”
“So what he talks about is when you're about to enter a trade, you have this transformation and then when you bink a trade, you get this like euphoric dopamine release. It's like really low stress mixes with cortisol and dopamine, you get like a euphoric release”
“So when you go on a string of trades and you hit repeatedly, you actually are a different physical human than you were before you started hitting the trades. So you hit five trades in a row, your risk tolerance goes up significantly, your confidence goes up significantly, the way that you think actually changes, your habits start to change, your sleep starts to change, your testosterone starts to change, like your body evolves”
“So the entire book, I haven't read that much, talks about how the dot-com bubble happened through the mental euphoria that happened to the traders. So when there's this accumulation of everybody hitting big wins and the whole market's going up, everyone's body is transforming, like their brain chemistry is rewiring to think they're smarter, to think they're better, to take bigger risks, to size higher on less conviction and to take way bigger swings”
“The reason like the market can stay irrational longer than you can stay solvent is because everybody at the same time is getting euphoric and shoving and getting euphoric and shoving and getting euphoric and shoving, then it makes this like… and it blows up into this massive thing where the entire market has like fat fucking balls and coursing testosterone and they're all doing it at the same time and taking extreme risk”
“So that inning like seven through nine is just like a complete, utter blow off the top that is so irrational and impossible to justify that everyone's T’s up like 50%”
“So he writes this entire book of how bubbles happen through the perspective of basically your testosterone going up when you enter trades and you bank. It's insane”
remember guys🙏
especially as we enter the most explosive inning of this szn
markets will always be there - never fomo.
if you're overleveraged and/or have been beta chasing and have been doing well in recent times - would be good to gradually scale out overnight leveraged positions (if any) as we get nearer to the spcx & anthropic ipo while keeping good amounts of spot exposure
would recommend to remember this funny idiom,
"ten birds in the sky are worth less than one chicken in your fridge"
NFA DYOR