Thread by @TradetheMatrix1

Not knowing how market cycles work, makes every market very randomized for most traders/investors. Without knowledge on cycles or themes, the rest of trading approach will be built on weak foundations. Biggest personal mistake made in every market in early 3 years.
#trading

There is very little attention going to cycles in broad #trading education, much less than it should be. Most technical analysis does not even acknowledge the existence of cycles, which makes no wonder why #traders are armed with so many random trading approaches.

Every #market has hot and cold theme. Study history to find out how much its shifting from one to other side, and try to be as accurate and detailed (as retailer can be). Your past mistakes and big losses might all of sudden make more sense, when wrong actions follow wrong cycle.

With right pulse on the current market cycle you might be surprised how better your "guesses" on what the ticker might do today will be. Many long #traders are unaware of cold cycle and many short sellers unaware there is an extreme hot cycle every so often as well.

Every once a while hot media theme enters, creating hot market opps buying low priced sympathy names. Long those initially. Short only when media steam runs out or when the leading name looses the momentum.

Every bull crypto cycle ends and turns into bear eventually, do not strap yourself into "cant do anything now" zone if bagged on long position. Figure out whats the right behavior to play on and hedge yourself. Follow the theme and cycle, do not box yourself due to mistake.

Structure the skeleton of global flows well to know what to prioritize if two themes overlap:
-1. geopolitical flows (biggest)
-2. macro economic growth/shrinking
-3. hot themes or technologies
-4. hype themes, few-days-house-fly