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Heavy Loss And Trading Resilience

By Andrew Aziz  |  
Andrew's Newsletter  |  
Jun 28, 2023

Dear Traders,

When trading transitions from a mere game to real-life with actual stakes, the dynamics change significantly. Winning becomes crucial to prove oneself, yet losses continue to mount. The dislike for losing intensifies as capital dwindles. Although you may make some profits, they often slip away, and then some.

What stands between you and your trading dreams? This gap between intention and action is where the struggle for success in trading lies. It requires mastering the trading mind, moving beyond mere talk, and taking decisive action. Fortunately, this skill can be acquired.

For instance, in my recent trading experience, I incurred heavy losses while trading NVDA. I took excessive risks and faced disappointment. This incident inspired me to attend tonight’s webinar by the remarkable Rande Howell, who will delve into the realm of self-mastery in trading psychology. Make sure not to miss this exclusive webinar, available to all Elite members at 8 pm. A recording will also be provided for later viewing.

On a brighter note, today’s trading session showed considerable improvement. Thanks to Trading Terminal scanners, both Brian and I had successful moves with Amazon and Tesla. You can watch our recap video here.

Our live trading workshop in New York City is filling up rapidly, and I extend my gratitude to those who have already signed up and supported our event. We will announce the attendees for the NYSE tour this Friday. If you wish to join the tour, ensure that you sign up by Friday at 12 pm.

Sign up for NYC Trading Summit!

The market remains resilient, driven by the Fear-of-Missing-Out (FOMO) phenomenon. Even mutual funds, despite economic concerns, are buying stocks for the first time since February. They anticipate further inflows, citing a delayed US recession, promising earnings, the AI frenzy, and low volatility.

FOMO is not limited to individual traders; it affects Wall Street firms as well. This morning, I jokingly mentioned in the chat that if Peak Capital were a public fund or had third-party investors, I would have been fired. My portfolio’s performance is currently underperforming compared to SPY and Nasdaq. 

Therefore, the fear of missing out compels everyone to buy. Economic outlook and high-interest rates seem less important, as fund managers need to report quarterly performance promptly. Nobody gets fired for buying popular stocks like Apple, NVDA, Tesla, or Microsoft. Hence, the market continues to rally, potentially becoming overvalued. However, history has shown that markets can remain overbought for years before any bubble bursts.

Wishing you success,