Baz

It's in these moments, where the market is feeling heavy that your mind will be racing into what lies in store. The Defensive mindset: You're overleveraged. You haven't taken profit on higher price point entries. You'd rather leave the positions untouched because "what if." You've added too aggressively to spot positions. You'll be nervous, worried about the potential for downside, unsure how deep it will be and your positions are under threat. The outcome here is you're likely to lose money, potentially panic close spot positions and usually freeze up during more aggressive selling as you're just hoping it stops. Your focus becomes watching red candles thinking "oh shit oh shit they all said we were going higher!" Your unrealised PnL plummets and your impulses close your positions down. The Attacking mindset: You're aware a larger sell off may be brewing in the market. You've cleared some risk on leveraged positions, especially from very recent entries. You know that even if you're wrong there's still opportunity if the market doesn't sell off aggressively to reposition long. You are psychologically prepared that your unrealised PnL may take a hit and your portfolio won't be at the same level it was 24 hours ago but this is all short-term. You have ammunition ready to strengthen your positions and holdings if the market gives a sell off. You welcome a sell off as opportunity. You are prepared, anticipatory and can action opportunity the market provides. Be attacking. Make the necessary changes to ensure sell offs don't leave you panicking and freezing up. Switch the mindset to realise opportunity and the ability to secure some great entries and additions to your bags. Understand the psychological aspect to a sell off, not just the visual one. A very important concept to learn and comprehend. ATTACK THE MARKET.