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Don Kaufman here. |
Today's market action perfectly demonstrates why trading psychology trumps technical indicators. Let me break this down. |
The Morning Chaos |
S&P futures opened up four handles, but things turned wild fast. The bond market? Complete chaos - nearly 200,000 contracts. But here's where psychology becomes crucial. |
Beyond the Headlines |
Everyone's fixated on NVIDIA taking hits on Blackwell chip news and Tesla propping up the Nasdaq. |
But they're missing the bigger picture. When bonds show serious sell-side activity, they can take apart the entire market. |
The Psychology Game 🎯 |
Here's what fascinates me: whenever a big tech name drops news, the market holds its breath. Take NVIDIA - the AI boom poster child. Everyone from day traders to institutional investors watches their every move. |
But while they're obsessing over NVIDIA's latest chip or Tesla's tweets, the real money moves elsewhere. |
The Bond Market: The Hidden King ⚠️ |
Let me share something that took years to fully grasp: The bond market is like that quiet kid in high school who secretly runs everything. |
Why Bonds Matter |
Size: The bond market dwarfs equities Smart Money: Institutional players moving billions Market Impact: When bonds move, everything moves |
Cutting Through the Noise |
The Morning Hierarchy Check |
First: Bonds and currencies Second: Major index futures Third: Individual stocks |
The Three-Screen Rule |
Screen 1: Bonds and rates Screen 2: Major indices Screen 3: Your specific trades |
The News Filter |
Headlines = Usually noise Price action = Signal Volume = Confirmation |
The "One-Day Wonder" Syndrome |
Gather 'round - this might save your account someday. |
The Market Trap |
Picture this: |
Market opens with a big move CNBC blasting headlines Your trading group chat exploding Everyone either panicking or celebrating |
And you're about to make a classic mistake. |
The Psychology Trap |
The Urgency Illusion: |
Your brain screams "Act now!" FOMO kicks in Everyone's making moves Reality: Usually a head fake |
The Confirmation Bias Special: |
You see what you want One day confirms your "thesis" Contradicting data gets ignored Result: Pain |
The Professional Approach 💎 |
The 3-Day Rule |
Day 1: Observe, don't act Day 2: Watch for confirmation Day 3: Look for institutional footprints Then: Consider major position changes |
Volume Analysis |
First day: Emotion Second day: Reality check Third day: True direction |
The Nimble Trader's Playbook 💪 |
Position Sizing |
Core positions: 60-70% of capital Tactical trades: 20-30% Cash: Always keep dry powder Adjustments: Based on conditions |
The Scale Approach |
Enter positions in thirds Exit positions in thirds Never all-in, never all-out Ready to reverse |
Warning Signs of a One-Day Trap 📈 |
Technical Red Flags |
Volume doesn't confirm price Other sectors don't confirm Bonds or currencies tell different story VIX not confirming fear/greed |
Sentiment Indicators |
Everyone on one side Media extremely bullish/bearish Put/Call ratio extremes Retail heavily positioned |
Remember: Trading isn't about daily wins. It's about being right over time and surviving to trade another day. |
The market will give you plenty of opportunities - your job is to be around to take advantage of them. |
$620/Day For 175 Straight Days (See It Live Tomorrow) 💰 |
Remember May 9th when I made what seemed like an outrageous claim? |
I said we'd discovered a way to potentially pull $620/Day from the markets - even if you've never placed a trade before. |
Skeptical? I would've been too. |
But here's the bombshell... |
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Tomorrow at 1pm EST, I'm laying it all bare. |
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🔥 URGENT: 445% WINNER WHILE MARKETS CRASHED 🔥 (My Next Trade Could Be Even BIGGER...) |
Listen up... |
While the Dow was bleeding out -300 points Friday, my inner circle quietly banked a 445% return on a single SPX butterfly trade. 💰 |
Not a typo. Not a backtest. REAL MONEY. REAL PROFITS. 📈 |
And here's the thing that's keeping me up at night... The setup I'm seeing for THIS WEEK looks even juicier. 🎯 |
99% of traders are panic-selling right now Meanwhile, the "smart money" is positioning for what's next I've spotted the same pattern that delivered Friday's 445% winner |
After 20+ years training thousands of traders and building thinkorswim's options education… |
I know EXACTLY what institutional money does during times like these. |
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While everyone else is paralyzed by fear... While CNBC is screaming about market crashes... While your neighbors are selling at the bottom... |
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To your success, |
Don Kaufman |