Many experienced traders would reply ''take the rest of your day off''. But what do you do to come back with a fresh mind the next day? How do you find something that takes your mind off the markets and wins your focus from unnecessary overthinking, overanalyzing, panic and make your losses even worse?
Reading books and watching movies or TV series simply doesn't do it for me. Right now I'm obviously focused on trading literature, but that's the last thing I want to read about if I'm having a bad day. An exception to this is historical books: I have always been very passionate about history; you can gain great anecdotes from the biographies of historical figures. I also love battlefield strategies, they blow my mind: whether it's Hannibal managing to encircle a twice as big Roman army at Cannae or Sun Tzu's Art of War, the sheer genius of such individuals intrigues me.
Sometimes however, I'm just not in the mood for reading. Last Monday gold was continuing its withdrawal after the publication of the minutes from the Federal Reserve, dropping another 20$. Silver also took a dive and the only thing that manage to limit my losses was that oil broke the 50$ per barrel. At least I had a right call on that one, but it didn't prevent my portfolios from taking heavy losses.
For a while I was tempted with the worst idea ever: chasing markets. That never ends well. So, I just closed all my positions , turned on my Xbox and play Halo online. Teabagging people online after blowing up their asses is a great way to improve my mood and competitive videogames have the benefit of gaining my focus and relaxing my mind.
In certain moments however, I just feel bad about myself. What better way to fix that than helping other people? I suffered from depression in the past and I have become rather experienced when it comes to fighting it. There's plenty of anonymous chat online where people go to discuss their problems without being judged and seek help. I go there, listen to their issues, give my opinion, share my experience, on rare occasions I even manage to turn their life around. I occasionally get emails from people I spoke only once, years ago, thanking me for the advice I gave them and telling me how their life got better. At the end of the day, life is not that bad after all. I'm ready to face markets once again. I had losses before, I always managed to come back.
You can see the previous weeks here.
As I mentioned precious metals took a nosedive. Props to Gary Savage, whose opinion I had mentioned in one of my previous blog entries and had the right call. I have read a number of opinions, there's a lot of different views at the moment. Some say it's a consolidation phase after the withdrawal, other believe gold is coming back. I'm personally going to wait until the Federal Reserve meeting of the 15th of June. Until then I expect the fear of the hike to keep the pressure on gold to lower levels.
Oil broke 50$ pb as I expected. It quickly withdrew at about 49.5$, but those prices defy fundamentals anyway, thus there's no reason for me to be short right now. I still think it's being artificially pushed higher by storing it, thus decreasing the supply on the market and that will sooner or later end up having an effect on prices dragging them down.
I dropped out of silver to reduce my exposure to precious metals.
LSE weekly PnL= -9.5% ETFs weekly PnL= -4.5%
-history books, videogames, volunteering
-short on gold for the next 2 weeks, long on oil for the moment