āDonāt focus on making money; focus on protecting what you have.ā
Hello, my friends!
š As we wrap up this holiday-shortened week on December 26, 2025, the markets remain in a subdued, low-volatility mode.
š Indices are trading at notably compressed Average True Range (ATR) multiples - signaling reduced daily swings and fewer high-conviction setups. In environments like this, discipline becomes your greatest edge.
šµ This is precisely why proper position sizing - always tied to a fixed percentage of your trading capital.
Nas100
Low ATR environments can lure traders into over-leveraging in pursuit of "normal" returns, only to amplify the damage when volatility inevitably returns. Stick to your risk rules: calculate contract sizes based on account percentage risk per trade.
This single habit preserves capital through quiet periods and positions you to capitalize aggressively when real momentum arrives.
The markets will heat up soon - don't let impulses hold you back when they do.
Mastering Discipline
Day in and day out, I witness the same challenges plaguing traders across the board.
Below, we break down the issue and proven fixes to build ironclad discipline.
What Are Premature Entries?
In stocks, forex, crypto, or options, confirmations are your plan's checkpoints - or risk rules (position sizing, stops). Jumping in early means acting on partial signals.
A stock breaks out on volume, but you skip waiting for a close above resistance or pullback test.
In crypto, a bullish pattern tempts a buy without on-chain data or support confirmation.
Why It Happens
Trading psychology drives 80% of outcomes. Key triggers:
Dopamine from price spikes creates false urgency; loss streaks fuel desperate recoveries.
Social media and hype make you fear missing out, even before real momentum.
Lacking checklists turns every blip into a "go" signal, breeding overtrading.
Struggling solo?
Partner with a accountability coach to track these demons.
ā” Professionals never go at it alone. Click here for an intro call - we'll ID gaps and make sure you stay consistent for 20 trading days! ā”
Newsletter Partner
Someone just spent $236,000,000 on a painting. Hereās why it matters for your wallet.
The WSJ just reported the highest price ever paid for modern art at auction.
While equities, gold, bitcoin hover near highs, the art market is showing signs of early recovery after one of the longest downturns since the 1990s.
Hereās where it gets interestingā
Each investing environment is unique, but after the dot com crash, contemporary and post-war art grew ~24% a year for a decade, and after 2008, it grew ~11% annually for 12 years.*
Overall, the segment has outpaced the S&P by 15 percent with near-zero correlation from 1995 to 2025.
Now, Masterworks lets you invest in shares of artworks featuring legends like Banksy, Basquiat, and Picasso. Since 2019, investors have deployed $1.25 billion across 500+ artworks.
Masterworks has sold 25 works with net annualized returns like 14.6%, 17.6%, and 17.8%.
Shares can sell quickly, but my subscribers skip the waitlist:
*Per Masterworks data. Investing involves risk. Past performance not indicative of future returns. Important Reg A disclosures: masterworks.com/cd
Whatās your trading story?
Hit reply and join the community waitlist!
Until next time,
Steve B
Founder, The Daily Impulse
Important Disclaimer:
This newsletter is for educational purposes only and does not offer financial or investment advice. It should not be taken as a recommendation to trade assets or make any financial decisions. I am not a registered investment advisor, broker, or licensed financial professional. Please be cautious and ensure you conduct thorough research or consult with a financial professional before making any investment choices. Trading and investing involve significant risks, including the potential for substantial financial loss.
Some content, including advertisements, promotions, or links, may be sponsored or part of affiliate programs (such as with proprietary trading firms). I may receive compensation, commissions, or other benefits if you click on affiliate links, sign up for services, or make purchases through them. These relationships do not necessarily imply endorsement, and all opinions expressed are my own unless stated otherwise. Potential conflicts of interest may exist due to these partnerships.
Past performance or examples discussed are not indicative of future results. I do not guarantee the accuracy, completeness, or timeliness of the information provided, and I disclaim any liability for errors, omissions, or any losses incurred as a result of using this content.
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