“The art of life lies in a constant readjustment to our surroundings.” —Kakuzo Okakura
The TradingVeiw community was all over the fact that BTC and other cryptos were on the verge of breaking out days if not weeks before Apr 19. It was obvious, so it is nothing to brag about.
However, how many of us are still long BTC or LTC? What about those who traded QCOM? How do you feel when it is obvious you exited or even lightened a position too early? Whether in BTC or QCOM it is easy to feel frustrated at times when we leave money on the table. Why does this happen?
Personal experience suggest there are three main reasons:
Setup potential. For example QCOM out of the blue basically increased there EPS by $2, causing it to break out on volume. Thus this was a technical breakout based on fundamentals. Big news!
While the major cryptos like BTC and LTC recent moves aren’t due to any significant change in fundamentals, the potential for a big move should of been obvious due to fact that traders using weekly and daily charts have been pointing to the consolidation and coiling under a major trendline for a long time now. And it was an obvious level where shorts were leaning on to hold.
So when there is a major change in fundamentals or a break on volume of a major technical level we need to recognize the potential for more volatility.
2. Failure to adapt. We must recognize we are trading against computers and algos that are not only able to read headlines and see technical breakouts faster than us, but also not afraid to push prices to extremes. If there is a huge spike in volume in conjunction with a technical breakout and/or an unexpected change in fundamentals.then we should not be afraid to hold our position, but instead just let the momentum take over - shorts will have to cover, analyst will have adjust their models and raise their price targets, and the Johnny-come-latelies will chase because of FOMO. Failure to adapt will not only cause us to miss the opportunity let our winners run, but also make it much more likely that we will get stopped out prematurely due to the increase in volatility.
3. Tiredness and Fatigue. Fatigue is perhaps the biggest reason for missing a trades potential and not being able to adapt quickly. When i was younger trading stocks was so much easier. I didn’t have to worry about tweets or global news and pre and post market trading was almost non-existent. Now we are constantly being bombarded by news and we can trade almost any instrument 24-hrs a day on our phone. Unlike computers we need rest in order to concentrate and function properly. When I’m tired I tend to be more impulsive which leads to frustration and disappointment. Recognizing our limitations and surroundings will help use understand that missing out on a trade or leaving money on the table is just part of trading and nothing to get upset about. Furthermore, allowing ourselves to get enough rest will help us be able to focus so that we can recognize a setups potential and adapt to new volititly, thus avoiding unnecessary frustration and disappointment.
Thoughts and comments always welcomed!
The TradingVeiw community was all over the fact that BTC and other cryptos were on the verge of breaking out days if not weeks before Apr 19. It was obvious, so it is nothing to brag about.
However, how many of us are still long BTC or LTC? What about those who traded QCOM? How do you feel when it is obvious you exited or even lightened a position too early? Whether in BTC or QCOM it is easy to feel frustrated at times when we leave money on the table. Why does this happen?
Personal experience suggest there are three main reasons:
Setup potential. For example QCOM out of the blue basically increased there EPS by $2, causing it to break out on volume. Thus this was a technical breakout based on fundamentals. Big news!
While the major cryptos like BTC and LTC recent moves aren’t due to any significant change in fundamentals, the potential for a big move should of been obvious due to fact that traders using weekly and daily charts have been pointing to the consolidation and coiling under a major trendline for a long time now. And it was an obvious level where shorts were leaning on to hold.
So when there is a major change in fundamentals or a break on volume of a major technical level we need to recognize the potential for more volatility.
2. Failure to adapt. We must recognize we are trading against computers and algos that are not only able to read headlines and see technical breakouts faster than us, but also not afraid to push prices to extremes. If there is a huge spike in volume in conjunction with a technical breakout and/or an unexpected change in fundamentals.then we should not be afraid to hold our position, but instead just let the momentum take over - shorts will have to cover, analyst will have adjust their models and raise their price targets, and the Johnny-come-latelies will chase because of FOMO. Failure to adapt will not only cause us to miss the opportunity let our winners run, but also make it much more likely that we will get stopped out prematurely due to the increase in volatility.
3. Tiredness and Fatigue. Fatigue is perhaps the biggest reason for missing a trades potential and not being able to adapt quickly. When i was younger trading stocks was so much easier. I didn’t have to worry about tweets or global news and pre and post market trading was almost non-existent. Now we are constantly being bombarded by news and we can trade almost any instrument 24-hrs a day on our phone. Unlike computers we need rest in order to concentrate and function properly. When I’m tired I tend to be more impulsive which leads to frustration and disappointment. Recognizing our limitations and surroundings will help use understand that missing out on a trade or leaving money on the table is just part of trading and nothing to get upset about. Furthermore, allowing ourselves to get enough rest will help us be able to focus so that we can recognize a setups potential and adapt to new volititly, thus avoiding unnecessary frustration and disappointment.
Thoughts and comments always welcomed!