Recovering from a Huge Loss: My Bad Trading
Dear Traders,
What a crazy day to start the week! Ardi, Brian, and I discussed in our weekend AfterHours with Traders that increasing interest rates this year will both strengthen the USD and put selling pressure on high-risk assets such as crypto and overvalued technology stocks (that are mostly represented in the QQQ index). Ardi is already long on energy and financials, and he has also booked some gains on them.
Today, as the market opened, we saw the expected big sell off, with the Nasdaq hitting as low as almost -3%. Although interest rates and yields are increasing around the world, the European and Asian markets opened without significant sell offs. However, on the other hand, the US market opened to a panic sell off. With a bit of confirmation bias on my side due to the Asian and EU markets, I thought we would experience a bounce. I tried to catch a few early reversals on the market sell off with TQQQ (a leveraged instrument of QQQ) and NVDA, and that resulted in some heavy losses at the Open, but eventually the final turning point unfolded at about $370 and I therefore was able to recover. Please watch my recap of recovering from a loss here.
As for Peak Capital Trading and Bear Bull Traders, we are launching our next Peak Capital Trading boot camp at 7pm ET today. If you are registered for the boot camp, I will see you in the boot camp room. We are full for this round.
Monday Onboarding commences with Carlos at 7pm ET tonight. Carlos will also be leading our Monday Technology class at 8pm ET. This evening’s topic is: Developing an Education Plan for the Upcoming Year. I highly recommend all new members join these two presentations by Carlos. If you have not yet taken out a membership with BBT, I hope you will give us a test drive before investing into a larger commitment.
This week’s Tuesday Strategy is with Ed Martin. He will walk us through his TradeBook that utilizes option flow data to understand where the smart money is going. Ed is an excellent and consistent trader, and one of the mentors I worked with early in my trading career. I learned much from him, and even though I evolved into a different style of trading, I gained so many important critical and analytical thinking as well as risk management skills. Thanks, Ed! I encourage everyone to attend Ed’s live presentation at 8pm ET Tuesday in the webinar room.
Créde will be hosting this week’s Psychology Wednesday discussion at a special time of 5pm ET and we will be holding our four regular mentorship sessions on Thursday and Friday. I hope I will see most of you (if not all of you!) in these various webinars.
To your success,
Andrew
