Stay alert. a few important suggestions
Updated
SPYFor a few days now I have been posting about a big drop that I expect. today I am again confirmed about that idea. As I said in previous ideas, is that we fell through the neckline of a huge Head and Shoulders Pattern. a few days ago we rose back to the previous breakout point, yesterday we tested that level and the neckline now so to speak serves as resistance, that was confirmed today. In my opinion a drop from the neckline is not unusual, so watch out.
Here some important things to remember:
- Try to keep your cool, and keep thinking rationally.
- Make sure you have a protective Stop-Loss set up.
- Be careful about adding money to a losing position.
- Guessing a bottom is difficult, and can go very wrong.
- Keep your emotions under control, notice you're getting frustrated? Then maybe go find some distraction, but never leave your computer until you have set a stop-loss.
I can see myself that this is very standard advice, but I and many others have experienced what happens when your emotions take over. Hence, I share this anyway.
Please leave in the comments if you have another suggestion on how to manage your account in these volatile times.
I wish you all the best.
This is not financial advice.
Note
This is a post I shared earlier. I linked the post under ''related ideas'' (post; Stay sharp in these volatile times!) Maybe this can also help you.These are crazy times.
In 2020 I started to seriously dedicate myself to becoming a profitable trader. the past few months have been very volatile. and for me as a beginner it is also very difficult to earn even a little constant results. and maybe you recognize yourself in my situation, But I have learned a lot from all this chaos ;) , and therefore I have written down a few of my own experiences that hopefully will help you to get a little more consistent results. as I say, I am no expert and this is therefore certainly not financial advice. but especially in these times I think it is nice to help each other a little and learn from each other's mistakes.
1. It's okay to not have open positions from time to time. Occasionally it can be frustrating, if you take a loss, but that's okay, hopefully you learned something from it. I now consider the current (short-term) trend to be neutral/ Bearish . and I am now reading Technical Analysis of the financial markets and in that book there was a sentence that I did find reassuring: "It is during these periods of sideways market movement that technical traders experience their greatest frustration, and systems traders their greatest equity losses". Take these times to prepare yourself for a more predictable market phase.
2. Trying to predict a bottom can be dangerous. Try to wait for confirmation, or a known pattern. Take LUNA/USD as an example, luckily I didn’t had any money in this coin. But you don't want to get stuck in a long position, don't forget to set a stop loss either, and the last point actually ties into point 2
3. A well-known rule is that you should not add to a losing position. I thought I had remembered this but I did catch myself doing it at the beginning, especially in times like this it can be disastrous, usually it doesn't end well.
I wish everyone the best coming times, hopefully most will achieve their goals. Keep thinking rationally and try to keep your emotions under control. I wish you all the best.
Let me hear from you in the comments, I am very curious about your experience in this market.
Perhaps you have a suggestion for me, I would be very happy with that.
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