It quite literally is over. I also met CATACLYSM in my trading day. As I gallivanted to and fro, I was met with a sharp metal object to the face — bludgeoned and destroyed. I am off by 410bps now and I have all but called it a day, presently 90% cash.
My process was simple: repeat the shit I did yesterday, which was to chase high volume explosions in the crypto space. It worked like a gem yesterday, up 10%. And today, in the morning at least, I was barreling into large swaths of cash, grandiose pleasures and the fortitude to see it through. Then the reversals came and those upside down frowns because frowns again. Stocks like TKAT and OCG were met with DISASTER, as people fled the NFT sector for fear their dicks would be severed.
It’s especially SAD because I was up so much, feeling so grande. I was going to buy Tiny Tim a new wooden crutch — but now he has to die — because my NFT related stocks COLLAPSED, leaving me in a most forlorn predicament. I suppose I could look at this ordeal in a half glass full manner, which is I am +5% since yesterday. But I will not do that, Sir. That sort of thing is for weaker men. But I will go into my process of trading, now that I am here and awfully chatty.
I look for stocks within 3% of session highs, up more than 4%, sporting a 4+ technical score from Exodus, and volume greater than 500k. I look for trends and have endless baskets of categories to help me identify them before others. When I find a trend or a pattern, I jump on it unrelenting. I chase shit +50% all the time, in the hopes of squeezing out another 5-10% or so. I do this over and over and over. I cut my losses when stocks hit -10% MAX or if they look sloppy and tired and the trend quit. On days like today, off 4%, I all but shut it down. No sense it making a greater FOOL out of myself. Tomorrow is a new day. I would say my guiding principles are to be very quick in taking gains and losses and working on my volume of wins vs the size of them. I always start positions off at 5% of my portfolio, rarely go more than 15%, and I usually just stick with 5% and move on. I will average down if the stock I buy quickly drops — because quick drops are usually due to a big seller and once that fucker is gone — the stock can recover. I am quite successful in finding the right point to average down. Recently I enjoy selling everything in the morning and starting anew. The gains are so great, it makes little sense to hold stuff from the day before.
I run through 40-90 trades per day and sometimes I book 10 losing trades in a row. I am never emotional or sentimental about trades and view myself as streaky, with a penchant of wanting to risk too much. So I check myself by forcing myself to sell when my positions are heading down. Because I don’t want to sell them. In my head, I cannot lose and XYZ is only down 8% because it’s resting. Truth is, the market knows more and the market always wins. So, it’s better to cede to it, rather than fight trends, a losing battle.
Currently we are seeing the 2014 narrative play out. Bubble stocks are off by 23% the past month. Pedestrian logic would suggest we might be bottoming soon. I think we are just getting started. These fuckers will bottom after down more than 50% from the top. Meanwhile, most of the market will be fine. We might even find a week or two of severe upside reversals. My opinions are truly meaningless, however. It’s best to deal with the market day to day, position accordingly. Right now we are DOOMED.Comments »