Thread by @MakaveliDAX

#DAX Hello friends! Like I said yesterday, time to review...

TP1 (Main) ✅

I put these images, but I recommend carefully reading all the previous tweets

And now... Long thread (again🤦🏻‍♂️😂) 👇

1) Yesterday:

We briefly traded below 16224, but it was not the time to go to TP1 (intraday levels aside, unpublished)

Important to see as I had already commented, that after that it was not ruled out to go back to the top (see image above)

Essential factor ➡️ OPEX

Context is very important

You must never forget the importance of OPEX, never ... but even less when that moment is close

Any bearish movement is stopped yesterday afternoon, and then ...

2) Overnight:

The closer the OPEX is, everything is more speculative

If you look closely, you can see that practically half of that nightly bullish movement occurs in 1 minute...

Remember:

Speculation ➡️ OPEX ➡️ Context

Understanding this, it's easily deductible that there was certain interest in driving the price up before the OPEX ends

Half of the movement in a minute at the time when it's easier to move the market with fewer contracts...

There are no coincidences, there are causalities

3)From 8:00 am (real market) the movement becomes clearly bearish

It should be noted here that despite the nightly speculation, the price has not reached 20 points above the indicated zone all week, and to which I made reference that the price could return before the OPEX

4)At least 3 clear opportunities to short (in case of being already out of the initial trade, I will comment on this below) or to start a new trade, add shorts ... it depends on each one

Perfect example of "Second Chance"

https://twitter.com/MakaveliDAX/status/1454137859665977345?t=b-S2FfahpApMscg-LPSQCw&s=19

Notice how from that moment, despite the high volatility, the 16224/47 zone has acted as perfect resistance, as I had pointed out in previous days

Seen like this, everything is relatively simple and if you haven't been able to trade it, you will probably hate what I'm writing...

Ok, I get it, that's why I will try to delve into what I see 👇

➡️First, the context is important (already explained) you can't forget that

➡️I was able to capture this morning a general feeling of frustration ... shorts closed in losses and disappointment ➡️ no more trading

Very important topic:

➡️Technically:

A) no more than 20 points above 16281

B)Second chance "probably the best entry"

(A and B already commented)

C) SL and BE

This is a complex issue, the use of SL is widely extended (as tight as possible) and the recommendation to put positions in BE whenever possible as quickly as possible

Ok, I respect that, and I have nothing against who makes really profitable use of it

But if you use it regularly you have to know:

1)Why do you use it?

2)Consequences?

You will answer: "to minimize losses"

Right?

If you answer that, you haven't answered either of the two questions ...

You will have answered "for what?" and I didn't ask you that, because I already knew that

1)You use it because you are previously assuming that your % of successes in the trades is low, so you usually protect your trades quickly

Perfect, it's a way of being consistent in the markets, widely demonstrated

Obviously for that you have to know your trading perfectly and know that it is indeed like that (have you tried it?)

Here a perfect example 👇

https://twitter.com/therobotjames/status/1447405357601472517?t=K7_mEHk4k6adK2I1nrO39Q&s=19

Maybe it's not the best option for your trading or for your usual trades, especially BE

A BE too early,on many occasions cancels big trades

In general, over-adjusting an SL in an OPEX week is largely responsible for the frustration it generates in many traders this type of week

IMO, adjusting the SL too much is not suitable for everyone (and even less on OPEX week)

You must be a great expert in it, especially in cutting trades and re-entering

There are very successful traders using this technique, they are fully adapted to it

2) Consequences:

In this case, it must be completely normal for you to leave, enter, re-enter, exit from the trades again

It should be something everyday, therefore there can be no feeling of frustration due to a failed trade

➡️Psychology:

Returning to the current trade, there can be no frustration or blasphemy against the market

This makes no sense...

If you understand the context and the technical section (both explained) this cannot exist today

Also, the market until today has been in a very small range ... yes it has had a significant loss with that nightly bullish movement ... then you are over-leveraged

You are breaching the other trading key ➡️ Risk Management

In short (excessively long thread):

➡️Know the context

➡️Know your trading style

➡️No emotions involved, just a plan to execute

➡️Adequate risk management

My opinion: generally many people trade too much time and work very little in all of the above...

Remember that this is and will always be a long-distance race and you should try harder than in any other job

Try to invert the balance trading/study and work 😉

And now after this long thread (I've actually tried to summarize as much as possible 😅😂)

Like every Friday, I want to wish you all a great weekend 😎

Friday's song: