How to Manage Your Emotions (5 / 12)
4️⃣ Set a fixed point at which you stop.
After three, four, five or whatever number you choose, stop for a good long break.
It’s when one trade follows another that most mistakes happen.
Consult your trading journal and review your strategy.
How to Manage Your Emotions (9 / 12)
8⃣ Watch out for greed.
Greed can make you stay in a trade when you had planned to exit, hoping to milk it for a little more profit.
Such trades risk turning out badly, just when you thought you were winning.
Use your trading journal to judge the best exit points based on past behavior.
Trading Psychology
The market doesn't defeat traders. Their emotions do.
Fear:
Fear causes traders to exit profitable trades too early. Trust your trading plan instead of your emotions.
Greed:
Greed leads to overtrading and holding trades too long. Know when enough is enough.
Revenge Trading:
Trying to recover losses immediately usually creates bigger losses. Walk away and reset your mindset.
FOMO:
Missing one opportunity doesn't mean you've missed them all. The market will always provide another setup.
Discipline:
Discipline means following your plan regardless of emotions. Consistency comes from repeated good habits.
Consistency:
Focus on executing your strategy, not chasing profits. Results improve when your process stays consistent.
🚨 $4.3 BILLION OF FORCED BUYING COULD MARK THE TOP.
Everyone thinks this is bullish.
I'm not so sure.
Every Nasdaq tracker now has to buy SpaceX.
Not because they want to.
Because the rules say they must.
Around $4.3 billion of automatic, price insensitive demand.
And it arrives just 15 trading days after the biggest IPO in history.
Ask yourself one question.
Why was a $2 trillion company fast tracked into the Nasdaq faster than almost any stock before it?
Because someone needed buyers?
Tesla joined the S&P 500 in 2020.
Forced buying arrived.
The easy money was already gone.
Today I'm watching a very similar setup.
The Nasdaq is beginning to resemble a textbook Wyckoff distribution.
PSY.
BC.
AR.
SOW.
If that structure completes, this won't be remembered as the breakout.
It will be remembered as the exit.
History doesn't always repeat.
But it often rhymes.