**Thread**

The Chop.

The chop is brutal and I want to discuss more about what goes on inside a Traders mind when we form a choppy range and when we're inside a choppy range.

I hope you can take some lessons from this to adapt to these situations in the future.

RTs appreciated

The chop usually forms after strong moves in one direction or another, for this we'll keep the focus on BTC and use "up" as our direction for discussion.

So, $BTC rips higher, we're approaching ATH, you can't go wrong being long, then something changes.

As we move higher, as we approach key levels, your mindset changes. Sometimes you can feel invincible, you've simply had to push the green button for 2 weeks and you've been in profit.

Anticipation grows and dreams of smashing through ATH into new territory continue to build.

This is where the first issue comes in to play.

1. Overconfidence and the assumption that you have to be correct.

Your mindset begins to look like this. Everything is now skewed towards your confidence in breaking through $20,000. Everything sets up as an ATH break.

2. Absorption of Information.

At the same time as your own mind racing to higher targets. Twitter begins pouring fuel on the fire.

"Retail isn't even here yet!"
"Impulse from $20k could lead to $30k!"
"Can you imagine the liquidations above $20k?"

You're fed more information.

*THREAD*

Scalp vs Swing Intraday trades and FOMO of “I can’t close it’s going higher.”

You’ll find yourself often caught between these feelings.

Looking at LTF for an entry, the market moves +10% and suddenly you find yourself looking to turn it into a swing.

The likely outcome in the MAJORITY of situations is:

Price pumping
Feel great about PNL
Look for higher targets
Price corrects
PNL drops
Either panic close before reversal
Or close at Break Even

The process is damaging to your balance and your psychology.

The reason is that your LTF entry is often unsuited as a swing entry point and if it is, your mentality is not prepared or able to hold for the swings.

This is an issue scalpers have to battle consistently. They will nail 3-4% moves while watching price often run 8-12% after.

You have to understand why you took your entry, what your expectations are and how you can manage the trade.

Converting from a LTF trade into a HTF one comes down to greed. We see green PNL and automatically start getting carried away with expectation.

In these conditions however there needs to be some grace given to that thought process. It’s possible but under management.