Fun For Some, Lesson For Others

Yesterday was a big day for several reasons. It was the first day of the month and the FOMC Meeting Statement was expected as well. Everyone knows what this means for crypto, so most of them are counting on making some profits.

Twitter and YouTube were both full of "what's going to happen today" posts and videos. Nothing wrong with these posts as everyone is covering all the possibilities, the three possible scenarios (up, down, sideways). Close to the meeting time, trading strategies started to appear on Twitter and traders (or should I say crypto celebrity wannabe's) started picking on each other as well. I saw trades with tweets like "I'm either a genius or the biggest loser". This particular one was a short setup, which obviously got liquidated. Respect to the user as instead of deleting his tweet, he admitted he was wrong and I appreciate that.

Photo by Dylan Calluy on Unsplash

As the meeting was in the evening (my local time), I wanted to watch "the show" on Tradingview in real time, to see what happens. As soon the data was out, many tweeted that there's nothing to see here, the time has come when the market doesn't give a fck about the data* and so on. Then sh*t hit the fan as the market started to move.

This was when "smart people" started lecturing others about what happened as a lot of people got rekt. Then sh*t hit the fan again and the market started to pump. I bet it was painful for many on both ends, especially for those who were playing with high leverage.

Sitting on the wrong side of the action is never a good feeling, especially when your account gets rekt and your reputation gets rekt too. Since last night, the mocking, blocking each other and name calling has intensified on Twitter. But there were some who instead of deleting their prediction tweet that did not match the market direction, admitted they were wrong. I don't know how much they lost, it's not my problem. My job is to learn from it.

This is not new, it happens every single time when there's a FOMC Meeting or any other major event that can move the markets significantly. These are some of the occasions when you can make a lot of money as volatility is good in trading, but this money is not given for free. You can also lose a lot of money. This is a dangerous game and even the most experienced can get rekt.

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Last night for me was a good lesson that I kind of expected, but even so, I was not expecting to see such moves. As much as I value Emperor, I disagree with him on this. Powell did not liquidate anyone.

Knowing TA is not enough in trading. Knowing how to preserve capital and stay away from trouble is a must.

Would be nice to know how many of those who had the loudest voice on Twitter got things right yesterday. Not because I feel sorry for them if they got liquidated, but because that's how you know how much you can trust them. But the thing is, you can trust no one, even if they got it right yesterday. The only one you can trust is your own self. No one else. The sooner you learn that lesson, the better for you. Everyone in this industry is in for the money, so they don't care if lose.

The more time you're in trading, the more you will realize self control and discipline is key in this business. Another thing that worth learning is who are the best traders on Twitter. Those are the ones who are quiet, don't want to influence, convince you that they know best by posting calls all day long. They post educational materials to help you learn, but the hard part is yours. No one is going to learn in your place.

I'm already looking forward to the next FOMC Meeting Statement, to see how the market is going to react. Observing how the market reacts is a good way to learn.

If you're a newbie, you may want to check out these guides:

• Communities Explained - Newbie Guide
• Cross Posting And Reposting Explained, Using PeakD
• Hive Is Not For Me
• How To Pump Your Reputation Fast - Newbie Guide
• Tips And Tricks & Useful Hive Tools For Newbies
• Community List And Why It Is Important To Post In The Right Community

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