This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COMarkets Hate UncertaintyBad certainty is better than uncertainty, or at least that's what they will tell you on Wall Street. People tend to make assertions about things that have no certainty as if they are fact, with a level of conviction that is hard to understand. Making predictions about future prices in financial markets is dangerous, because nobody has a crystal ball or should believe that anything will definitely happen. We all know by now that predictions about price, news and how the market will react to said news (Elon’s erratic tweeting, China “banning Bitcoin”) can never be made with any degree of certainty. There is another phenomenon called “market jitters” which is often a result of uncertainty. From Investopedia, some paraphrased: “Market jitters is a colloquial term for an elevated state of anxiety and perceived uncertainty about the economy or a specific asset market. Market jitters often involve not only risk (known or estimable factors that can be priced in) but true uncertainty (unknown factors whose risk or probability cannot be reliably estimated). Efficient markets may be able to handle risk well and adjust well to changing risk across various asset classes, but uncertainty is more difficult or impossible to accurately price. Nobody is safe from the jitters, did you notice how quiet crypto twitter was when price dropped and how bearish sentiment turned, everyone had the jitters crossing their mind.Though uncertainty by its nature cannot be factored into prices, economists have devised ways to estimate the general perception of uncertainty in an economy. They use measures of asset price volatility, the dispersion of forecasts of economic performance among major forecasters, and the frequency of media mentions of terms related to uncertainty. Time periods when these measures are elevated can be considered episodes of market jitters. Psychological factors often end up playing a role during periods of heightened uncertainty, which can lead to high volatility, dramatic price swings, and market instability. Keynesian economics refers to these types of factors as “animal spirits” due to their perceived irrationality. In a worst-case scenario, a market may experience a setback purely as a result of market jitters, if the sentiment devolves into general pessimism. We are currently recovering from the jitters, but prone to getting them again at any moment."Markets are presently uncertain. All markets. What does that mean for us?That it is likely a good time to remain on the sidelines as traders, watching and waiting for more clarity.We have endless news that is driving the uncertainty, from Elon and his antics to a looming threat of China cracking down on mining and exchanges. We are still in a macro bull run, but as we have been shown, the crypto market remains uncertain and difficult to predict. Nobody can confidently state what is coming in the next few weeks and beyond. My goal with this newsletter is to help you become a better trader and investor. The first rule of trading is to preserve your capital. The second rule is to grow it. I take the first rule very seriously and try very hard to avoid posting risky trades in an uncertain market.Patience is a virtue. Let’s see what happens.Chart Request Live Stream at 2 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 1 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.I can not guarantee I will do your chart, I will do my best.Chart Request FormStream link: https://www.youtube.com/channel/UCxIU1RFIdDpvA8VOITswQ1AIf you are a new member, please refer to Issue 236 (you can click on it here -https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-236-think-like-a-whale-592727) for instructions on how to make my charts your own.In This Issue:Markets Hate UncertaintyIntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsWhat We Learned From This DipMark Cuban Invests In PolygonBoth Political Parties Can Agree On BitcoinMy Recommended Platforms And Tools
The Wolf Den #250 - Markets Hate Uncertainty
The Wolf Den #250 - Markets Hate Uncertainty
The Wolf Den #250 - Markets Hate Uncertainty
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COMarkets Hate UncertaintyBad certainty is better than uncertainty, or at least that's what they will tell you on Wall Street. People tend to make assertions about things that have no certainty as if they are fact, with a level of conviction that is hard to understand. Making predictions about future prices in financial markets is dangerous, because nobody has a crystal ball or should believe that anything will definitely happen. We all know by now that predictions about price, news and how the market will react to said news (Elon’s erratic tweeting, China “banning Bitcoin”) can never be made with any degree of certainty. There is another phenomenon called “market jitters” which is often a result of uncertainty. From Investopedia, some paraphrased: “Market jitters is a colloquial term for an elevated state of anxiety and perceived uncertainty about the economy or a specific asset market. Market jitters often involve not only risk (known or estimable factors that can be priced in) but true uncertainty (unknown factors whose risk or probability cannot be reliably estimated). Efficient markets may be able to handle risk well and adjust well to changing risk across various asset classes, but uncertainty is more difficult or impossible to accurately price. Nobody is safe from the jitters, did you notice how quiet crypto twitter was when price dropped and how bearish sentiment turned, everyone had the jitters crossing their mind.Though uncertainty by its nature cannot be factored into prices, economists have devised ways to estimate the general perception of uncertainty in an economy. They use measures of asset price volatility, the dispersion of forecasts of economic performance among major forecasters, and the frequency of media mentions of terms related to uncertainty. Time periods when these measures are elevated can be considered episodes of market jitters. Psychological factors often end up playing a role during periods of heightened uncertainty, which can lead to high volatility, dramatic price swings, and market instability. Keynesian economics refers to these types of factors as “animal spirits” due to their perceived irrationality. In a worst-case scenario, a market may experience a setback purely as a result of market jitters, if the sentiment devolves into general pessimism. We are currently recovering from the jitters, but prone to getting them again at any moment."Markets are presently uncertain. All markets. What does that mean for us?That it is likely a good time to remain on the sidelines as traders, watching and waiting for more clarity.We have endless news that is driving the uncertainty, from Elon and his antics to a looming threat of China cracking down on mining and exchanges. We are still in a macro bull run, but as we have been shown, the crypto market remains uncertain and difficult to predict. Nobody can confidently state what is coming in the next few weeks and beyond. My goal with this newsletter is to help you become a better trader and investor. The first rule of trading is to preserve your capital. The second rule is to grow it. I take the first rule very seriously and try very hard to avoid posting risky trades in an uncertain market.Patience is a virtue. Let’s see what happens.Chart Request Live Stream at 2 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 1 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.I can not guarantee I will do your chart, I will do my best.Chart Request FormStream link: https://www.youtube.com/channel/UCxIU1RFIdDpvA8VOITswQ1AIf you are a new member, please refer to Issue 236 (you can click on it here -https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-236-think-like-a-whale-592727) for instructions on how to make my charts your own.In This Issue:Markets Hate UncertaintyIntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsWhat We Learned From This DipMark Cuban Invests In PolygonBoth Political Parties Can Agree On BitcoinMy Recommended Platforms And Tools