Thoughts about trading and the stock market - week 1

While I'll talk about $NKE and its performance on January 9, today's post is more a reflection of the entire week and more.

I've always felt a call to the market, from many years ago. I just never listened to it, and when I jumped in, as discussed on my first post, I did it with zero knowledge and didn't even invested time and effort, just dumped money away. So, I say this because my algorithm on twitter (X), tiktok, and reddit are full of trading and market in general, which I love.

I know people say that there are some lessons you have to learn on your own, when it comes to trading. Seeing everyone talk about it makes me feel like I should listen and be smart. At the same time, they talk about strategies, which I will talk about when I get there.

Here's my favorite tweet so far "You come to trading for freedom only to realize you must be a slave to your rules" - @Jtrader

While I haven't set any rules yet as I haven't fully started trading or swing trading, I do think about my current open contract. I certainly want to take as much profit as I can, but also know that I opened the second contract pushing my luck. It's fine, I've made my peace with it because it's helping me learn things real time.

The second thing that has been constantly showing up is "learning how to be patient", "Learning how to do nothing". In the post in the link, the person who's profited $1.2M said "I made 1.2 from being most patient mf in the world".

https://x.com/l2wtrades/status/2008139550023975121?s=46

So, I think as time progresses I gotta follow this:

• Be patient
• Follow your rules
• It's okay to not do something

So, now let's talk about $NKE's performance today.

The chart above is representative of one month, the chart with the purple line is the RSI, which as discussed if it's at 70, then buying momentum slows down and sellers begin to take over. Today, it closed at 60.42, which is close to 70 but not quite. If you look a the earlier periods, there are times when the RSI declines or rises without touching either bound.

When I look at the MACD instead, and while trying to understand the type of divergence present at this moment in time, I see the following:

From January 8 onwards, I see that the price is reaching higher lows, but for the most part I can see the MACD changing a bit. I expect the stock to go down at the beginning of the week next week, but then I expect it to recover. If it doesn't, then we can close the contract before losing the entire investment. Given that we see a bit of steadiness in the MACD, while at the same time higher highs, we can assume that the momentum has slowed down. This means that the buyers are trying to push the price but there isn't much conviction. As a result, I may consider abandoning the contract earlier if I see the same stagnancy on Monday/Tuesday.

Week 1 of open market is closed.