A discipline test while searching for Neo.
There are two times I can think of when a trader’s discipline is most tested. In times of extreme volatility and in times of little.
We’ve undeniably undergone the typical summer trading period closer to the latter. Fortunately, unlike other years gone by, there are still regular plays and money to be made every single day.
But I’ve noticed this week, more than ever, it’s important to avoid deviating too far from bread and butter set ups.
Everyone knows the best part of a colder market is in the waiting with eager anticipation to find the ticker that ignites fire, warming everything back up. Remember $SPI anyone?
The question is: will you spot, ‘the one’, that next breaks the matrix? We’ve had some close contenders with $VRPX last week and $PXLW enjoying a nice run but I can’t think of much else from the top of my head.
Meanwhile, this week we saw a resurgence attempt from the apes trying to breathe new life into $AMC but more importantly a revival of the NFT sector.
It seems the digital world of non-fungible tokens is only just starting back up and stocks like $TKAT and $DLPN are prime for a second run. And let’s keep in mind, nothing creates more opportunity long and short then a sector leader and its accompanying sympathy plays.
($TKAT’s daily as it aims for a second run)
This week’s best short? It had to be $BPTH due to its multi-day drop which is broken down in my weekly hot shorts video (LINK). The secret in this one lies within the fundamentals.
Otherwise, I’m too busy trying not to get too comfortable. Right now, most of the morning gappers are falling early on. Shorts are getting cosy, shorting earlier and earlier, whilst using more size to compensate for the lack of volatility.
($BPTH and $XERS – examples of failed morning gappers)
It’s creating the perfect storm – and when we least expect it, boom – a 1,000% runner that shorts are over-sized in hits.
So if one aspiring, growing trader could give advice to another for next week, it would be to keep an active eye on the NFT sector but most importantly I’d say please stay safe, Neo is coming and probably when you least expect.
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