The more I read about trading, the more I understand it is not about money.
Thanks to the trading books I’ve read, I’ve opened the door to cognitive psychology, and it’s been so fun to understand the psychological distortions in our species and, ultimately, in myself.
Trading and CBT (cognitive behavioral therapy) are teaching me to be more patient, focused, and decisive. It is also teaching me to think about thinking, and how what others think others are thinking can help me better understand the market and life situations.
If you were to tell me as a child that in my adulthood I’d be really interested in financial markets, I’d never believe you, but here I am, reading, learning, and implementing as much as I can from classics like these:
It’s been like one month since I decided to take it more seriously, and I’ve been focusing all my attention on $LIT
Why only one coin?
Cause I was reading Alpha Trader, and one tip Donnelly gives is to become an expert in your market. Become as familiar with it as you can so that you know when something out of the ordinary is happening. Thanks to that advice, I’ve been just observing $LIT
I’ve been watching its price action almost all day for the past three or four days. I feel like I understand its areas of interest a bit better. I’ve also been keeping a close eye on its volatility and where the big players have stepped in.
I shorted it yesterday evening. I saw a big red candle with big volume below the 200MA on the 1H at a key level and decided to test my hypothesis that price would go look for more liquidity below. And it did.
I am just testing strategies to see what I feel the most comfortable with. I think I’ll trade on the 1H with 15m to find good entries, and the daily to see the main trend.
Also, I’ll try my best to write a daily update on $LIT. I’m doing this to help me identify my strengths and weaknesses, like a public, digital trading journal.
I don’t control the market; I only control my actions. I focus on the process; the outcome takes care of itself. My job isn’t to predict, but to observe, be patient, and act decisively when an opportunity presents itself.
