Five V turns in 30 months do not pay your stop

Speak up, gang! The news of the week on Wall Street affects those who operate Nasdaq: according to MarketWatch, the technology has five V-shaped recoveries in 30 months, and Deutsche Bank sees a new turnaround ahead.

The bank recommends above-average weighting in the sector and says the recent sell-off has gone too far. It's a reading by big people, by an institution that looks at the market with a magnifying glass that I respect.

Bank opinion is not a trigger

Look: a vision like this serves as context, and that’s it. It doesn't tell me where to get in, where to get out, or how much I can lose. The bank thinks the drop was exaggerated. The market has no obligation to agree with it, and the price, when it wants, exaggerates even more.

That's why I always repeat: we are a CPF against institutions. Humility with the market. I only trade in favor of the trend and with confirmation. If the chart confirms, there is a trade. If it doesn't confirm, it doesn't exist, no matter how beautiful any bank's thesis may be.

Five recoveries don't protect anyone

It may be that technology changes again. Maybe not. What I do know is that recovery history is not insurance against loss. Anyone who enters thinking that "it always comes back" forgets to calculate what happens until the price returns.

Why? Because risk management comes before the trigger. Before clicking, I already know how much I can lose on the day and where the trade is invalidated. The loss limit has been reached, I stop, with no desire to recover. That's what discipline is.

And it goes the other way too. Goal beat, turn off the screen. The dopamine of gain demands one more click, and it is with this extra click that the market usually picks up the tab. An armored mind means controlling feelings, especially when things are going well.

Think like a store owner: there are good days, average days and bad days. Nobody closes their doors because of a weak Tuesday. What matters is the end of the month, after paying expenses. Trading is a business, and business is run with rules, not with headlines.

If you want to learn how to operate like this, with controlled risk and method, that's what I take into X-Trader Training. Come and find out, without rushing and without promising a miracle. Here the focus is on building the routine of a disciplined trader. Count on me.

Automatically translated from Portuguese.