I posted the chart below almost 3 weeks ago in this post, What now for Bitcoin??.
This is an update to that post, with how the chart is looking now.
As you can see form the chart, patience can pay off. This is how you go about trading successfully, you develop a plan and you stick to it. As they say in the game, "Plan the trade and, trade the Plan". It doesn't mean that it will make you profitable on every trade you take, but it will give you a greater chance of success. Just think about anything important that you want to achieve, do you just turn up and do it, or do you plan it in advance? Everything from cooking a simple meal to taking a holiday needs to be planned, otherwise you will end up without the ingredients or you'll never leave home. "Fail to plan, and you plan to fail". Trading is no different, if you want to achieve success. You can't just show up at a chart and expect to start trading straight away. Your chart needs to be marked up in advance with your intended plan.
So what's my plan now for Bitcoin? My plan now is to wait! I will wait until something happens on the chart, that allows me to formulate a new plan in accordance with how I trade.
Most people don't have the patience to wait for price to develop on the chart. Just because they have shown up at the charts and are ready to trade, they think they should trade. You may be ready, but the charts might not be ready. You have a couple of free hours and so you think you should be trading, as after all that is what you are there to do. It doesn't work that way! The charts will be ready when they are ready, not when you are ready and eager. And they may be ready at the most inconvenient time for you, but that is just how it is. What exactly do I mean by "ready", I mean your trading edge can be seen by you on the chart. Lack of patience causes traders to trade when their edge isn't there, and this is usually why they loose, and not because their trading plan isn't good enough.
Another cause for traders failing, is because they change their plan without a good reason. Unless price is telling you to adapt your plan, stick to it. Check this post again that I linked to above, What now for Bitcoin??. I could have easily jumped in too early to the trade or not got in at all, but I had planned in advance the different scenarios, which allow me to stick to my plan. I knew nothing had really changed. And again maybe they had changed, but not according to my plan. Price is designed to move in a way that will trick you and make you doubt yourself.
I will be back with a new plan, when it shows up on the charts. Right now my target area has been hit and I need to wait for price to develop, to hint at what it intends to do next, so that I can formulate a new plan.
I am not responsible for any losses you may incur as a result of acting on any of the content contained in this article. I make no recommendations to buy or sell, and this post is purely for information and education purposes. Opinions expressed here are my own, and you should seek advice from a financial adviser.
