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A thread on my experiences and the lessons I learned about following trends and not being afraid of a crash:
I started my trading journey attempting to day trade / scalp. I did not have much success, as these types of techniques are very difficult, especially as a beginner. In reality I ended up being way better as a swing trader.
But at the time (~April 2020), after having seen the covid crash I was so afraid of overnight risk or another potential crash that I *needed* to wait for another huge crash and enter went things weren’t so “overbought” or “irrational”.
Well, thanks to joining @AOTTrades and studying @RedDogT3's 6:30AM videos I learned that how I was thinking was the exact OPPOSITE of how pro traders do. Pros don’t argue with the trend, they make money from it.
Specifically if we are above the 8 and 21 day EMA on $SPY, then it is safe to assume we will keep going higher because we are in an UPTREND. If a true crash does happen, we’ll first need to break through the 8 and 21 EMA to even begin falling.
Until we get below and stay below the 21 EMA, I honestly see consistent top calling as just noise. I’m still a new trader and learning many things. These are just some of the lessons I have learned so far that have really helped me become a more consistent and profitable trader
