1. The bad news is that my position was liquidated, but the good news is that I was quite calm. I didn’t feel as bad as the first time. It took me a week to adjust before I felt better, and a month to get over it. I also missed the opportunity to make up for the loss later.
Actually, I am bearish on this market. I just closed my short position on August 2. The original plan was to buy at 6.15, exit at 6.3, and then continue to short to take advantage of a small rebound. The result was 6.0, 5.9, and 5.6. As a result, 5.5 had no support at all and went straight to 5.2. With ETFs and BNB falling sharply, I received a text message and was about to add margin, but it was closed.
2. I am quite weak in this market, and I am too isolated from the information I have access to.
The Fed’s rate cut this time was inconsistent, but I didn’t pay much attention to it. Before the meeting, the Fed was going to cut rates, but in September, it cut rates and kept them unchanged. But the data later was not good, so a rate cut was necessary. The US stock market also fell.
Usually when interest rates are cut, money will flow out of the United States and into the crypto market. This is also the general view in the market that interest rate cuts promote the growth of the cryptocurrency market. However, it is ignored that this time is different from the past. The current relationship between the cryptocurrency market and the U.S. stock market is closer because of the new financial tools, BTC ETF and ETF ETF. This big drop caused little damage to the U.S. stock market due to the suspension of trading, but it caused bloodshed in the cryptocurrency market. I have to say that those people on Wall Street are powerful and actually picked well.
Another trigger for the big drop is that the Federal Reserve chose to cut interest rates, while the Bank of Japan chose to raise interest rates. They did not follow the pace of the United States. What do you want to do as a younger brother? Most of the hot money that entered the United States went into the U.S. stock market. When the interest rate cut started, these funds would definitely choose to leave. The Americans thought that these funds would buy U.S. Treasury bonds in the future. As a result, Japan made the yen appreciate, and hot money would run to Japan. They wanted to take advantage of the Americans. The Americans were not idle, so they directly shorted Japanese stocks. You should know that Buffett only increased his holdings of important shares in Japanese companies a few months ago. He turned against them at any time.
Immature views on the latter
1. Take a break after the liquidation, adjust your mentality, think clearly whether you can continue, remember not to get excited and operate again. If you are unwilling, you can set up an ant warehouse like me, I will leave it alone and continue to liquidate. I don’t feel bad. If it is right, I will regain confidence and continue to do it.
2. For those who are trapped, I actually don’t have any good solution. 1. Cut, 2. Make up, 3. Play dead. If you are afraid of being blown up, you can start hedging and lock the position. But I don’t recommend this kind of operation. If you are not careful, you will lose money on both ends.
3. If the adjustment lasts for 2 trading days, the market will stabilize and everyone will expect a deep V.