The Traders Journey: Inactivity
There will be periods of inactivity in your trading, it’s not a bad thing but it can be hard to take. You do your scans and follow your routines to find very little week in and week out. You have 2 choices, trade the rubbish or wait for conditions to come to you. If you trade the rubbish you can give back what you have earned. Be smart, be patient and hold your capital for the good days.
The Trader Cobb Crypto Show! Talking business in blockchain!
Hello everybody, and welcome to The Trader Cobb Crypto Show. Today is one of those wonderful episodes that is titled: The Trader’s Journey. And tonight is about inactivity, and the reason I bring this up is because recently we have seen a lot of inactivity across the top ten, now if I talk to you right now about what has been the last, wha, couple of weeks? Even throughout the entire start of 2019 it’s got to be spoken of that we haven’t seen a huge amount of activity.
Now when I talk about activity I’m talking about trends, I’m talking about tradable markets. And as you are all very privy too I am a trend trader. And when I don’t have good trends, well naturally I don’t have good setups, or good trades which means, you’ve got two choices, you can sit out, and do nothing, or you can trade within the chop, and more than likely give money back to the market.
Now a couple of things come up when I bring this subject to mind, two things, the first thing is that you can basically trade within that chop, and more times than not, you’ll give money back. Now the issue with this is there’s two sides to think about. One is often people will think I’ve had a good November, December.
Ethereum, IOTA, Monero
November and December, trading the strategies that I trade and if you’ve learned and gone through my courses there were some really fantastic trades. December was very quiet up until, roughly about, well actually not roughly, the date was the 19th of December and across the top 10 we saw Ethereum, IOTA, Monero and Bitcoin, amongst others outside the top 10 setting up for wonderful four hour Crypto Cradle trades that had basically perfect cyclicity and really good opportunities, now those trades ran on very very well, IOTA against the US dollar was the one I took and did very well from that.
Now it turned out, I actually took some Monero as well, but it turned out that because of those trades with relatively tight stock losses, ie. the risk was, well the entry in the stock was quite tight, so therefore the risk was the same dollar amount, but a tight little entry in stock meant the move, if it was further or bigger or longer or larger, however you wanna put it, it meant larger profits and of course, what happened there was that it did move very very well.
The thing is, with November being a good month, the November was more or less a really good month based more so on the bitcoin short from 5,700, and I did document that, the rest of the month apart from that bitcoin trade was relatively quiet but that was a 17 to one reward risk trade, so naturally it was a really really nice reward.
That being said we went into December I did very little through December until that 19th and then did very well. Coming into the end of the year, moving through into the beginning of the next year, I more or less didn’t do a great deal ’cause I took a few days off, I didn’t watch the market I did whatever I wanted, I stood back to a certain extent.
I still did the odd scan, but there wasn’t a great deal there to be traded. That then round through into the early stages of January from about the 7th on, and that’s when I went and had a holiday up in a wonderful part of the world with my family, friends and had a great time, now as much as I was still scanning, doing my scans and watching the market there was very little that actually came about.
One trade I have had in 2019 was Litecoin, Bitcoin, an absolutely amazing setup on the daily, and it was actually a stop out, so I lost money on that trade. I’d still take it any day of the week, and I’m very proud of that trade. I really well waited, waited for a long time for that, and a great trade indeed. Just missed my first target by about 0.9 of a SAT.
So again, the first two trades of my year, I was looking at two trades to be sitters to wait to see if I could get my eye back in after taking a break, I watched a couple, I watched and watched and watched and within two three weeks of watching, I decided I was going to take a trade, I had my eye back in. As I am now back in Sydney in my office looking at these charts and trading as if it was the middle of the year I’m now looking at these markets and I see very very little going on.
With bitcoin for example, yesterday’s 24 hour candle, it basically stayed within a range of $100! Very very small, we are not seeing, and this will come out days after this, but my point is, we’re not seeing really big moves right now. I wanna see what the market does, I’m happy to sit back and be inactive. If you are thinking that you’ve done well, and you’re going to have a stab at this, and a stab at that, what it does is it sends the wrong message to your head.
Trading is about psychology, it’s about speaking to different parts of your brain. Now we think that we operate ourselves on a level playing field, that we always make our own decisions. But it’s actually your subconscious that is being fed information and signals your whole life that really rules your conscious mind.
So therefore as traders being that if you’ve been at it for a long time or a little bit of time, if you’re relatively new, I’m talking five years or less, you’ve not trained your brain enough yet, subconsciously to make those decisions, so naturally it’s much more difficult to not take trades through periods of inactivity. For me, I don’t mind it, I’m happy with it, I’m fine with it because I’ve done this for long enough and I know as bizarre as this sounds, doing nothing is often where the money is made in those periods of time.
So what I’m saying to you is this guys: you’re going to face periods where it feels really difficult to not take trades. It feels very very hard to sit out and do nothing, but these are the moments that really decide your future going forward, because when times are good we profit. When times are not we sit out. That’s what professional traders do.
Others, they trade the same all the way through and what I see through mentoring is people that will take great trades in great trends and do very well, but they’ll also take terrible trades and crappy trends because they feel like they need to do something.
So ladies and gentlemen, inactivity is your friend. Let this be a test for you, let this be a lesson, let this be something that you learn from, because if you don’t learn how to do nothing and be inactive, well you don’t really have a future here, the sooner you work that out, the better off you’re going to be. Have a fantastic day, speak to you very very soon. Bye for now.
The Trader Cobb Crypto Show! Talking business in blockchain!
Categorised in: Free VideoTags: bitcoin, Blockchain, Ethereum, IOTA, Litecoin, Monero, tradable markets