Crypto Currency trading can be a wonderful and horrible thing at the same time. You fall into the depths of hell when you are faced with losses and you float on air amongst the heavens when your alt coins have big rises. In both cases, you are a victim to emotions and likely lack logic that is needed to stay balanced in your efforts to simply profit from the markets moves. I can tell you that true profitability comes from grounding yourself not only as a trader but also as a person. Any fool can make or lose large amounts of money in this space quickly. If you are wise and follow some of the guidelines, using your own good logic and discipline, which I hope you will develop. The amounts of your future gains could very well be staggering indeed. The idea behind using TA is purely one of logic/balanced reasoning. Most try to use it to predict the future when in reality it teaches us to examine where we were, where we are and where we can go. I am going to give you a window into the ways I scale in and out of positions with images below and the logic/tactics like a general moving men/resources in order to win battles. These battles for us are simple, to capture profits and grow our Bitcoin army! (Replace Bitcoin with ETH, LTC, etc etc if needed for motivation/favorites.)
Table of Contents (click to expand)
Be a Two-headed Snake when you view the market
“The skillful tactician may be likened to the shuai-jan. Now the shuai-jan is a snake that is found in the Ch’ang mountains. Strike at its head, and you will be attacked by its tail; strike at its tail, and you will be attacked by its head; strike at its middle, and you will be attacked by head and tail both.”
In trading, this is no different. It is ok to have an overall bias, such as mine is buy side always looking to hodl coins and build my positions for the future, as I believe we have much upside in the future. Even with that, I will sell without thought and fiercely if needed in a blink of an eye. Show me a chart like the one below and I can actually be holding a negative position where I am net short, though in general by under 10/5% of net.
I always align my bias to the technicals of the chart and not to what I think or feel. The key is to be flexible with your buying/selling. If the chart says to sell, then sell. I was able to absorb the full down move in many coins by trading in and out at support/resistance points with patterns/fibs and the cycles of the market. The key is to be flexible and focus on being the shuai-jan, looking always to take a BITE out of the market.
Stay focused and Goal driven
Our primary goal in trading is simple, that is to PROFIT, sure we can believe think want any number of things from the market, but far too many times I have seen many get stuck in positions based off of nothing more then an IDEA/DESIRE/WANT, ect ect. They take their eyes off the prize of the goal to make/create profits in their trading/investing. The chart above demonstrates the what is there, not anything else. At the time when ETH was in the 1200 1400 level and I was exiting/selling, the euphoria was deafening. “We are going to 2000/3000 easy! You are a fool to sell here, just HODL!” I heard many things, but did not care…
I saw what the chart showed me and did like I always do, scaled out. Sold above the 1200 the 200% level scaling out all the way as it went to 1300-1400 bit by bit. then we had a very fast drop to the 800 and i started buying back and then scaling out again above 1200, repeating this over and over until the buy in the 600-500 back to 900-1k again scaling in and out. Compounding my profits, along with reducing possible losses all along the way.
The TA was there for the Resistance/Support levels and I just tuned in and increased my bank. The point is as you will see in the video below, I am always focused on my goal of increasing my bank = THE PROFIT. Too many people imo in crypto are dumbfounded and let good opportunities past them by all the time. With a clear understanding of TA and the goal to profit, there is great opportunity to grow far beyond the masses that walk around almost as if they should be riding the short bus and wearing a helmet to prevent injury.
Get the TA & Education you need
If you don’t know the score and have no idea how to plan a trade or even what TA =”Technical Analysis” is and how to use it to trade Bitcoin or other crypto currencies, well then it is time to invest in yourself and increase your market knowledge. There is a great deal of trading and learning how to navigate the often rough seas of the market. Some of the ways people do this are by Signal Groups or Educational services. As long as they are not scams I recommend trying as many as you can. Getting a varied viewpoint and seeing what you like and works for you is wise indeed. Often people are amazed at some of the trades I make and to me, it is just simple logic of using the resources and clues the market gives me. It is many years of knowledge I have, still, if you want to be the captain of your own ship, then climb aboard!