Happy Friday, Evolvers!
There have been a lot of juicy trading opportunities over the past week, but I haven’t been capitalizing…
I’ve missed some ideal setups, like Nvidia Corporation’s (NASDAQ: NVDA) textbook rejection at the $400 level.
In hindsight, this trade was the low-hanging fruit I should’ve been picking…
And to add insult to injury, it felt like every trade I pulled the trigger on this week resulted in a regrettable loss.
As annoying as this is, I have to remind myself to stay disciplined and patient. I’m mostly correct about the direction of the setups, but off with my timing.
If you’re experiencing any of the same problems, it’s time to pay attention…
It’s Friday, so it’s time for our Q&A. Keep reading and I’ll answer your questions…
“What are your thoughts on the recent surge in crypto stocks? Are you planning to trade it?”
This is a timely question…
As you’ve noticed, crypto stocks have been making moves to the upside over the past few weeks.
But why is crypto surging?
I think this move is primarily due to one catalyst — the debt ceiling negotiations.
The U.S. government is close to defaulting on its debt. If Republicans and Democrats don’t agree on raising the debt ceiling, there could be disastrous implications for the economy.
Speaker of the House Kevin McCarthy and President Biden have been negotiating the raising of the debt ceiling for weeks now.
Now, it seems they’ve reached an agreement with the House passing the bill.
CAUTION: If the Senate passes the bill as well, another trillion or so dollars will be printed by the government!
This brings us back to crypto, a commodity that gets the spotlight any time the money printer turns on.
Unlike the U.S. dollar and other fiat currencies, Bitcoin’s (BTC) supply is limited to 21 million.
This stands in stark contrast to the $83 trillion (and counting) circulating the global money supply today and makes it such that BTC isn’t susceptible to inflation (or dilution) like the U.S. dollar is.
Now, when traders hear that the value of the U.S. dollar stands to suffer even more, crypto has become a natural “flight to safety” trade … which is exactly what you’re seeing right now.
So, to answer your question, I’m currently keeping a close eye on the following crypto stocks:
- ProShares Bitcoin Strategy ETF (NYSEARCA: BITO)
- Coinbase Global Inc. (NASDAQ: COIN)
- Marathon Digital Holdings Inc. (NASDAQ: MARA)
- Riot Blockchain Inc. (NASDAQ: RIOT)
I do think this move could continue, but I’m waiting for the perfect opportunity to potentially get into some calls.
“What aspect of your trading career are you most proud of?”
When I look back on my career, I’m most proud of my longevity.
Listen…
I’ve seen so many traders come and go, rise and fall, gain and lose…
It’s easy to have a lucky streak in the market, but it’s exceedingly difficult to last an entire career in this game.
Take it from me…
My trading journey has been a challenging grind-up as opposed to a quick ascension to the top.
I’m not a gunslinger, I don’t usually bag massive six-figure wins, and I don’t have a big appetite for risk.
But these are the exact reasons why I’ve been able to make $4 million in trading profits over more than a decade.
I’m disciplined and patient. But most of all … I’m consistent.
It’s taken years of practice and studying to figure out what works for me.
And after so much time in the markets, I’ve realized that I value a long and fruitful career over any individual period of money-making or trading success.
I’d suggest that you try to prioritize the same things.
REMEMBER: Your goal should be a long time in the markets, not timing the markets.
Final Thoughts
Have a great weekend, Evolvers!
I know how I’m spending this weekend … I’ll be back at the drawing board, looking for ways to improve my trading performance next week.
How are you spending yours?
