An insular Tahiti
Traders are typically insular. This is simply based on the fact that a task so daunting requires absolute focus and determination. This doesn’t allow much for an extensive social life, maybe even typical life at all. One of the problems is a lack of collaboration which typically solves problems at a faster pace. You do not learn this at school. Another one is companionship, especially valuable in times of pain. Almost all traders find themselves after a long road of obstacles overcome, in the embracement of pain, as a facilitator for happiness. After all, you do not get quite as much satisfaction from flying to a mountain top with a helicopter versus walking up to the peak for ten days under difficult circumstances. Without a high tolerance for psychological pain we find success in this business not to be likely. One needs to find some sort of satisfaction in constantly regrouping and improving and being motivated by challenges since market participation provides plenty of that. An insular Tahiti.
A loner mentality with an interest in self-reflection supports this solo sport
and the prospects to make it to the Olympics. There are no regionals in trading. You either make a killing or are a constant looser. Just getting by or making a living grinding it out more likely points to end up broke at some point.
The nature of this game is unique and going into learning this profession should own clarity of just what one is engaging with. Another truth as well is, that this can not be attempted as a hobby or a sideline activity. This multidimensional chess game just doesn’t allow for a recreational component if one doesn’t want to be a constant losing trader.
BTC-USDT, Daily Chart, Inter Market Relationships:
BTC-USDT, daily chart as of August 4th, 2020
One part of this multi-dimensional chess game is that all markets are related in various fashions. It is typical for Bitcoin to follow with a small delay in the precious metal sector. When precious metals closed strongly last Friday and Bitcoin tried over the weekend to front-run for even more advances, we were alerted. Too often have we seen fake moves on weekends especially in ill-liquid night hours (US time zone). We took profits into this spike-up move using our quad exit strategy. A method that allows for partial profit taking at different levels. As a result, we were able to create runner profits of 21.17% (bright green arrow trade) and 6.13% (dark green arrow trade). Briefly after, a more than 1,500 point decline would have otherwise stopped out our positions and wiped such profits.
Like these inter-market relationships, as an overview essential to keep a larger roadmap, it is crucial to step outside one’s insular Tahiti. Long term stress situations are only sustainable if you have companionship. Find a mentor, another trader, involve your spouse, or join a traders group to find that others struggle just as you do and to overcome hurdles together.
BTC-USDT, 60 Minute Chart, Just A Breather:
BTC-USDT, 60 minute chart as of August 4th, 2020
We post all our trades live on our Telegram Channel, and as expected prices stabilized quickly to establish a sideways zone. After rallying for more than 20% over the last two weeks Bitcoin prices are pushing into extremes. Therefore, it was natural to expect a breather. A time where we find it to be higher risk to participate with new entries.
The insular Tahiti represents an extreme as well. Extremes are hard to maintain for a long period. You don’t only need partners in crime for the hard periods. As Albert Schweitzer said it best:“Happiness is the only thing that multiplies when you share it.” You need company to celebrate your success as well!
ETH-USD, 60 Minute Chart, Relative Strength:
ETH-USD, 60 minute chart as of August 4th, 2020
Just like Bitcoin follows the precious metal sector, the remainder of the crypto market follows Bitcoin. Have a look at various coins to see if some outperform the market while Bitcoin is trading sideways. We pointed towards Ethereum in our telegram channel which recovered from the quick down move more rapidly than Bitcoin did.
An insular Tahiti
While it is important to have companionship, the actual work requires seclusion. Each trader needs to find his or her niche to create a trading approach very specific to one’s nature. Trading parts like money management, time frame, trade frequency and so much more need to be sorted through. This until you find the appropriate measurements to have the glove fitting you custom-tailored.
Only then, once all tools are in alignment to your beliefs and core self-representation, a true effortless mastery of execution is possible. Then the continued repetition in execution can be found to consistently extract money on low risk from the markets, which we find to be the only goal not unique but common to all great traders.
We post real time entries and exits for many cryptocurrencies in our free Telegram channel.
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