It's been two weeks since I saw the convergence on XRPUSD. There's a chance that it will breakout and shoot all the way up to meet 0.405 area. However, for safety reason, I still maintain a stop loss at 0.233 area.
Chart analysis originally by myself, created with MetaTrader4, hosted at mql5. And here is the paremeter of the trade that is going through.
Here's a good book for you to read and download for free at cryptotradercentral.com, My Fairy God Trader by Rob Booker. Good gracious God that was like 15 years ago when this book was introduced, and I was doing my FOREX trading recovering from a major business loan that is digging a huge hole on my financial credit score.
What I learn best is, for every market will have thier own supply and demand chart that meeting each requirement. What people fail to realized is, to protect investment. Oftenly I heard friends said, I "think" it's low enough, it's going to be a good buy, low and behold, it flies even further lower by half. Seriosuly man, look at our crypto currencies, some of them has a spread of up to 10cents, and BTC was once spread $2000 apart. A friend of mine had to buy $15,000 worth of BTC at $17,000 at one point. Can we say it wrong? The answer is no, and my friend did took the ride all the way from 15k up to 19k. Did he cash out that point of time. Unfortunately, no he didn't.
Staying in a trade because you already have “so much invested in it,” emotionally and financially, is like following your old girl-friend around even though she’s now dating an NFL linebacker. Eventually, you’re not only going to permanently lose your old girlfriend, but you’re going to get your butt kicked.
Rob Booker: My Fairy God Trader Page 19
I understand sometimes we make mistake. I understand sometimes market just decided to turn against us, I totally get how it feel when you get owned by the market consensus. It's like everything were laid there well, we're ready to kick ass, and suddenly things just went the other way round, and there goes our money. I know it's tempting for us to say, it's going to turn back up, it's low enough, let's buy a little bit more at discounted price and we can soon recover it once the market turn around. I tell you, that's probably not going to happen. The same shit is happening everywhere, not only in my XRP trade. It appears to be at the perfect situation, but oftenly what happened is some minor news(or shall we call it excuse) and everything turns around and our trade got stuck.
In order to get out of the Pip Auction game, set a plan, stick to the plan, and trade according to a set of parameter and criteria. Fine tune the plan is alright, but do not derail and remove stop loss. The risk reward ratio is a guideline, set realistic stop loss and target. We can set BTC target at $100,000 but make sure it's realistic, atleast for the time we initiate a trade.
I mean, not that people back in the golden years would guess BTC can hit 19k when it was only $100. But atleast some of them already cashed out at 9k because they believe 10k is the ceiling.
The auction for my XRP still not close yet. It's going to lose at my stop loss regardless, but that's the risk I willing to take and they're being calculated. If this doesn't workout, I will just have to wait for another opportunity. Failed to plan is planned to fial.