OK take the title with a pinch of salt, I am no pro :)
But I wanted to share this journal with you of trades to show how easy it is to get rinsed and washed in the market if you FOMO and when to admit you're wrong and reverse directions.
I started accumulating bitcoin in December 2017 - right after the ATH. The All time high to me was a signal that BTC has legs - if it can go to 20k then people want it. I sensed a pullback to 10k region so I started buying in the low 10s. However BTC proceeded to crash to 6k in February! Shocked, feeling hollow I very nearly rage quit the market. A voice of reason whispered to me 'Do you really believe this is the best selling price you will see, ever again?". I hodl'd on and then watched amazed as the market rallied from 6k in Feb 6th to 11.8k only a few weeks later. But this was a bull trap and 11.8k gave way. I was bullish at this point, of course were were going to all time highs again, mah chartz said so!
As the price declined I decided I had to trade to survive this bear market. I sold my bitcoin3z and as the price declined further I felt vindicated.
Apr 12th: The last mini dump before the $1,000 green candle I sold all. Panicked thinking it will go lower. Again the voice of reason whispered to me "How low do you think it will go? 5.8k? So what? Hold on my little trader friend, the risk is to NOT be in the market at this point".
I immediately rebought, the $1,000 green candle happened minutes later, and boy, was it a surprise. I mean, I thought we might crawl to 7300 but 8k in an hour? Amazing!
So there you have it friends. All of us get rinsed out by the market, all of us FOMO and make mistakes from time to time. The question is, how do you manage risk, and survive the market? If you do - glory awaits!
But I wanted to share this journal with you of trades to show how easy it is to get rinsed and washed in the market if you FOMO and when to admit you're wrong and reverse directions.
I started accumulating bitcoin in December 2017 - right after the ATH. The All time high to me was a signal that BTC has legs - if it can go to 20k then people want it. I sensed a pullback to 10k region so I started buying in the low 10s. However BTC proceeded to crash to 6k in February! Shocked, feeling hollow I very nearly rage quit the market. A voice of reason whispered to me 'Do you really believe this is the best selling price you will see, ever again?". I hodl'd on and then watched amazed as the market rallied from 6k in Feb 6th to 11.8k only a few weeks later. But this was a bull trap and 11.8k gave way. I was bullish at this point, of course were were going to all time highs again, mah chartz said so!
As the price declined I decided I had to trade to survive this bear market. I sold my bitcoin3z and as the price declined further I felt vindicated.
- On March 19th I bought the low in BTC within $13 of the price, mah chartz said so and I had a fib level there so I placed a limit order It filled! Success!
- By March 22nd I was about 20% up, getting bullish again I predicted 11k, 15k, 20k, but BTC failed and dropped back for the last big crash.
- March 29th a several day long consolidation, I was honestly confused, dazed, tried to buy / sell but kept getting chopped out in the market. I took a step back - what if this is going to crash? So I sold. I also sold short at 7900.
- Boom. Market down - dropping into low 7k range in just a few days. I sold short again on March 31 and covered both positions - I kid you not - within $ of the April 1st low. Hero status!
- The market quickly rebounded and I went long on Apr 1st at around $6800. However, in the following 3-week consolidation I FOMO dumped no less than twice because, well, the market looked very bearish. Every bear and his aunt were saying 5.8k so it had to be true right?
Apr 12th: The last mini dump before the $1,000 green candle I sold all. Panicked thinking it will go lower. Again the voice of reason whispered to me "How low do you think it will go? 5.8k? So what? Hold on my little trader friend, the risk is to NOT be in the market at this point".
I immediately rebought, the $1,000 green candle happened minutes later, and boy, was it a surprise. I mean, I thought we might crawl to 7300 but 8k in an hour? Amazing!
So there you have it friends. All of us get rinsed out by the market, all of us FOMO and make mistakes from time to time. The question is, how do you manage risk, and survive the market? If you do - glory awaits!
Each correction has taken guts, nerves to overcome. People posting bear targets, reasons why it should or must go down. You have to ignore the noise! The trend is up, which means we move our stops up under successive lows and look for a good long exit. The trend often runs further than we think.
Right now my long stops are at $8700. If we reverse here - that's almost $2,000 of upward price action captured, a great long swing trade. However I have a suspicion we will not reverse here .... ;)