This is going to be a bit of a funny success story as it involves making a loss.
I had been making small marginal gains on BTC / EUr all day.Nothing hd been really happening. I was up £500 for the day so it was not too shabby. I had not seen a breakage of a support line so I was stupid enough not to place a stop limit on. Looking at my trend, it appeared to be going up, so I bought and I did not set a stop limit.
It then dove down and it was touching the support line and it stayed like that for a good 10 minutes. Then came the breakage of the support line, and the drop of the share value by causing a drop of £250 value. This action of the trend was what I had been waiting on all day and when it happened I was not in a position to take advantage of it bacause I was tied up in the trade and not out of in if it had automatically sold because it droppped.
I put a stop limit on lower, it sold, down £150 and lost out on 500. Now, if I had put a stop limit on properly and if it had gone up initially - no probelm - made moeny, 2. if it had gone down, stop limit would have come into action and then i would have been in a psotion to buy low and also make a profit.
Rule of this story, use a stop limit if you are waiting on breaking of a support line.
So strategy is this:
- Define support line
- Set up alert for support line hit.
- Buy stock on support line
- Set up stop limit a little under - can be set up to then make a profit on a falling stock
- Set up alarm of stock rising - can then be set up to make a profit on a rising stock.
So not a very successful story but one that has caused me to focus on a actionable plan and how to make wheather it falls or whether it goes up.
Key to all of this is one word patience. I had been patient for 4 hours and not much had happened … need to put actionable plan in place to take advantage of process.
If i keep to this I cant loose.
This is my first real effort. it will go down in the spreadsheet as the first entry.
Cheers Guys - remember to use stop gaps.