I would like to share some insights into how I made it happen. I traded bitcoin. But can be applied to all markets. Hopefully people can find it helpful in this turbulent markets.
After losing money for more than a couple years, I learnt what works for me. Firstly, I realised swing trading is better with the strategy that I have. My trades are generally 1-2 months long. Secondly, gradually entering a position over days/weeks suits me instead of entering once with big size. It takes care of some of the anxiety. Thirdly, patience and discipline is key. Imagine taking one trade a month but watching markets everyday.
Coming to the strategy itself. It has three pieces. Fundamental,Technicals and Narrative.
Fundamentals- An understanding of economics and how fed policy affects markets. I would recommend yanis varafoukis videos for understanding game theory in economics, rest should be self learned.
Technicals- Basic understanding of momentum. This can be done with indicators or just eyeing the chart. Most of the time momentum fades are clearly visible to the naked eye. When price doesn't have the necessary speed to continue on, in either direction.
Narrative- This requires some general awareness and experience to detect properly. Like if everyone around you is making money on GME/AMC or crypto, things like that, you can expect this pillar to align.
Bringing it together. Whenever I saw all three pillars align and in confluence, I took the trade. That is key here. If one aligns but others don't, it won't work. Lastly, give it enough time to play out.
Hopefully, this can shed some light on markets and my approach towards it.
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