Now that I am fully in my trade that I posted about yesterday, average cost ~ $13,700, I want to review where we started this trade so if your new here you can see that our situation may be different then yours and we have a little cushion which provides us leniency in our risk taking. The cyan boxes are levels we bought (bull) and the magenta are levels we sold (bear). Now the buys were position buys, but the sells were all out. Note we never really came close to buying the bottom or selling the top, but we have made a profit on every trade except the one in black. Like baseball you do not need to be above 500 hitting to win games. You definitely do NOT have to hit home runs. Base hits are the bread and butter of any baseball team, and this goes for trading as well.
We have traded both Bullish and Bearish markets without unnecessary margin risk. Though we did not hit any home runs, our batting average is over 700. Hello Cooperstown! This is an example of how money management, patience, and going after small profits while cutting losses quickly compounds your portfolio. Its also why we have to zone out the crowd noise when we are trading. What happened to the Korea ban on cryptos that I heard about? ;). Just like baseball players you have to zone out the noise!
Bitcoin has been resilient and I believe we test the old high or make a new one before pulling back in a major correction. A strong green bar at the close of day would confirm this move. The 14500 and 15500 levels are the 0.382 & 0.618 retracement of the previous corrective wave. These are levels we will expect a slight pullback.
Bottom line, trading is not easy, its tough work and requires dedication and focus. Money management and small gains are the keys to success. Yes once in a while we hit a home run, but that is only because we were focused on base hits.
I'm not so sure I would be comfortable here with a short play on margin! Those must be some uncomfortable shoes right now! Should have taken profits at 11k when you could have. Take profits when you can where you can, and stop trying to become a millionaire overnight!
We have traded both Bullish and Bearish markets without unnecessary margin risk. Though we did not hit any home runs, our batting average is over 700. Hello Cooperstown! This is an example of how money management, patience, and going after small profits while cutting losses quickly compounds your portfolio. Its also why we have to zone out the crowd noise when we are trading. What happened to the Korea ban on cryptos that I heard about? ;). Just like baseball players you have to zone out the noise!
Bitcoin has been resilient and I believe we test the old high or make a new one before pulling back in a major correction. A strong green bar at the close of day would confirm this move. The 14500 and 15500 levels are the 0.382 & 0.618 retracement of the previous corrective wave. These are levels we will expect a slight pullback.
Bottom line, trading is not easy, its tough work and requires dedication and focus. Money management and small gains are the keys to success. Yes once in a while we hit a home run, but that is only because we were focused on base hits.
I'm not so sure I would be comfortable here with a short play on margin! Those must be some uncomfortable shoes right now! Should have taken profits at 11k when you could have. Take profits when you can where you can, and stop trying to become a millionaire overnight!
Komen:
Crap forgot to change the sell levels to magenta!
Komen:
If your going to be a trader learn to be PATIENCE and control IMPULSIVE tendancies/emotions! Keep in mind we just entered the trade. The other thing to keep in mind - do not focus on a $500 price swing with a $14,000+- price tag.
Buying one $13,700 share is = to Buying 100 $130.70 shares or 1000 $13.70 shares. All three positions cost $13,700.
If this was Apple and we bought 100 shares at $137.00 I would not be flipping out if it went down to $130. If this was AMD and we bought 1000 shares at $13.70 I would not be flipping out if it went to $13.00. The price is relative. If your nervous your risking tooooo much period! The chance of us going straight to $5000 without any pullback is slim to none! Especially in a longer term bull market. Not that it can't, but we should be able to identify a price structure breakdown. I do not see that at this point!
If your going to trade understand you will never time the top or the bottom, with few exceptions LUCK! Stocks, gold, coins go up and down whether in a bull or bear market. You have to understand this. In the context of the longer term trend we are still bullish. Even today we had another higher low. But you have to allow time for the market to move. Look at multiple time frames and do not focus on one. You'll get tunnel vision trading!
Buying one $13,700 share is = to Buying 100 $130.70 shares or 1000 $13.70 shares. All three positions cost $13,700.
If this was Apple and we bought 100 shares at $137.00 I would not be flipping out if it went down to $130. If this was AMD and we bought 1000 shares at $13.70 I would not be flipping out if it went to $13.00. The price is relative. If your nervous your risking tooooo much period! The chance of us going straight to $5000 without any pullback is slim to none! Especially in a longer term bull market. Not that it can't, but we should be able to identify a price structure breakdown. I do not see that at this point!
If your going to trade understand you will never time the top or the bottom, with few exceptions LUCK! Stocks, gold, coins go up and down whether in a bull or bear market. You have to understand this. In the context of the longer term trend we are still bullish. Even today we had another higher low. But you have to allow time for the market to move. Look at multiple time frames and do not focus on one. You'll get tunnel vision trading!
Komen:
This is highly risky, but I am added another small position here at $12860. I'm going to try and catch the bounce and this will help offset. DO NOT attempt this if you are not willing to risk a loss!!
Komen:
And a nice little $75 scalp trade to reduce my cost a little.
