ZenithX Team

Age-old adage urges you to be emotionless as a trader; this is WRONG. What the writers and ex-traders who say this actually mean is:

EXECUTE without emotions.

You are a human-being with a vibrant spectrum of emotions. These emotions are primal and most of the time, happen with or without your permission.

Take Action without emotion

For example: How many times have you seen people jump for joy and post PnL cards on the timeline which only serves to mark the top?

Or how many times have you seen maximum euphoria or pessimism at the highs and lows?

We like to chop it up to an imaginary god-like entity that watches OUR PnL and moves the markets accordingly. Unfortunately, that’s not the case.

Think about it like this – If you FEEL a certain thing, you need to realize that there are probably hundreds of thousands (or millions) of traders that are feeling the exact same way.

Most people fall victim to their emotions. They execute on these emotions. Could be a lack of experience. Could be because they’re highly impulsive. Could be both.

Feel your emotions but don’t ACT upon them. Use them as tools that signal and GUIDE you as you navigate the markets.

Keep in mind what the market wants you to feel. Use your analysis then SUPPLEMENT it with how you expect the average market participant to be feeling. You’re MUCH better able to anticipate where pain points might be, which direction price is likely to take. Some people call this an emotional-form of Game Theory rather than some mathematical models.

It’s insanely difficult to predict what the majority of people are DOING. But on a chart, it’s rather simple to predict what the majority of people should be FEELING.

Your mind shouldn’t be working against you. Your feelings shouldn’t be working against you. You as a phenomenal trader, should understand your own inner-workings and then LEVERAGE that (pun intended) to your advantage.

Only from here can you start to “feel the setup” instinctually. You’ve heard traders go on and on and on about how a lot of their trading is just gut FEEL. What people don’t realize is the prerequisite to get to that point IS NOT just time in the market (which btw is silly). Time is not EQUAL for all traders. The prerequisite is you understanding those FEELINGS and incorporating them into your trading to the point where it SEAMLESSLY meshes in with your psyche. The perfect proprietary blend of technical and emotional planes of analysis for YOUR trading 👍🏻

So many subscribers ask this Question”What is Liquidity?”
HERE IS THE ANSWER
In short, liquidity is the speed at which market participants can execute orders by finding a willing buyer or seller. Liquidity is sort of the key to everything in the market -- it's the reason for price movement in the market.

Imagine this: Your car breaks down and need to sell your things to make some money. Among the things you're selling are rare Pokémon cards and the used mattress in your spare bedroom. All the Pokémon cards are brand new and in perfect condition, but the used mattress is old and uncomfortable. Which would end up selling faster?

The Pokémon cards, of course. You find out there’s a booming Pokémon scene in your city, you find a willing buyer almost immediately and you’re able to sell your cards for a near new price. This means Pokémon cards in your city are a liquid market with many participants.

On the other hand, unsurprisingly, nobody want to buy your old, used mattress. The used mattress market is illiquid and it takes a very long time to find a buyer for your mattress.
Now that we understand the difference between liquid and illiquid markets, we can apply this concept to the markets we're looking to trade.

Think of it like this:
The market is a game of Pac-Man, and Pac-Man is like the "market maker," or the entities/institutions that control price. Pac-Man wants to keep eating the little dots on the map to keep moving. The little dots he’s eating? that's liquidity!