Lightsaver

I really hope you didn't panic sell the bottom. During this dip I actively tried to communicate the psychology behind what happens when the market retraces. Understanding this phase of a market cycle and how to best navigate it, is of extreme importance to your success. It all comes down to one thing - Applying an opposite mindset to your emotions. Prices move in waves of continully expanding and contracting. The more we expand, the more we will contract. This is the balanced forces that govern all things in life, not just in the markets. What goes up, must come down. Therefore, we can understand that the more we dump, the more bullish we become - because a dump can only last so long. Eventually, it will reverse. So if we have 5 red weeks in a row, what is likely to come next? A green week. And if it doesn't come next, its even more likely the next week. The same applies in reverse. But when investors are emotionally linked to the market through their bags and the fear of losing them, these 5 red weeks become an extremely scared place to be. Everyone overinvested, over leveraged, panicking about losing more money. When in reality, the lower it goes, the closer it is to going higher. When you can detach from your emotions and look at this analytically, some very interesting things happen. And when this happens, is when you really start to win. 1: The lower prices go the MORE comfortable you become because you know the market is close to reversing. 2: The higher prices go the LESS comfortable you become, because you know the market is close to reversing. 3: You are able to scale out on the way up and scale in on the way down because you see down as opportunity, and up as risk. At the end of the day it is this simple. The more green we have, the closer red is. The more red we have, the closer green is. Remove your emotions. Look at the charts as data. Understand how the cycle of up and down moves Scale out on lots of green and in on lots of red That is quite literally it.