04/01/2019/15:00CET
This is an update on the last post called "Trading 101 - how to find a swing trade opportunity"
Here is the daily chart with our potential profit and loss trade zones in green and red. Since placing the trade on 21st dec, #Bitcoin has managed to stay on top of its descending support line which defined its trading channel since the breakdown back on the 14th Nov. Positive sign.
What's new?
- I upped the stop loss to 3250USD
- Back on the xmas day 25th I got spooked out of my position*
- My entry point is adjusted because of my previous point*
- I have noticed a rising support trend line forming which I am closely watching to see if it holds.
Chart observations
Here is a zoomed in view of the daily to better see the action...
- Since the daily close (CET time) on the 25 dec, we have been playing with the 21dema indicator. I have been watching for this to act as a springboard of support but #btc has not been able to sustain any altitude above it.
At press time the 21dema is 3788usd. We are trading just $24 below it. - We are fast approaching the falling 50sma which sits at 3903usd at press time. Current price is $139 below this.
- I have added a rising line of support that started to form with the last bounce off the precious descending support line on the 28th dec.
- Volumes are cooling off at the moment. We need them to pick up for this trade to go green.
*I got spooked out of the trade back on xmas day. I did what I preach should not be done: trade with emotion. My bad. Ended up pulling out and then re entering at a higher price, albeit with less capital. I adjusted the P&L zones to reflect.
The #POK #ProofOfKeys event yesterday had me again watching the screen way to much. I am relieved I did not pull the trigger again.
I am sharing this with you because this is the easy trap to fall into: emotion trading.
If you trade like this, you will lose in the long run!
If you trade like this, you will lose in the long run!
When I look back on my first post, "Trading 101 - how to find a swing trade opportunity" I was wildly over optimistic. I think this has been the hardest thing to come to grips with after having gone through the bull run of 2017. I thought a surge could close 50% in 48h. In hindsight I sound totally foolish!
My trade still stands but now my horizon is for end Jan to mid Feb.
I will leave this update at that.
Are any of you trading this latest dip?
Are you in the green or red, or are you waiting to get a more decisive trend reversal signal from the market?
Would love to hear from you all.
As always guys, leave comments, have fun and trade safe.