Nearly had a big win but have a loss... learning


#1

Yesterday,

There was a period where t caught a period where there was a wedge forming. The good news is that I observed the wedge. i had a position of having coin and I didnt know whether it would be going up or down.

What I should have done was to set up a stop loss to cover me on that scenario. i was dithering on whether it was going up or down. I could have covered the down with a stop loss and the up would have be dealt with.

I am now 10 percent down of where I could have been.There would have been no risk if I had taken this approach.

Hopefully this makes sense to everyone. If you are not sure on which way its going cover the adverse way with a stop loss of in this case its a stop loss to make you some money.

Crash


#2

Never force a trade. Be patient, analyze, and wait for situations where you have very high conviction that the market will respect and follow your TA. Only then do you set the trade, and as you mentioned, protect yourself with a stop loss.

Trading and gambling are two entirely different things. It takes a lot of knowledge and experience to translate from one to the other.

I personally am still a beginner, so even though my TA is often able to spot potential opportunities, I usually just sit out and watch to see if my assessment was right or not. Observe and learn. Very rarely do I place an actual trade, and when I do, it’s only when I’m nearly certain that I’m right.

Best of luck in your future trades. Keep learning. :slight_smile:


#3

This is learning. For sure. Given a similar situation where I am dithering on what to do then I have a strategy on how to deal with it.

It was an easy one to pick up on. I called it right to about a minute but then screwed up. I was more surprised I got it right. :wink:

The bit I had not got joiined up on was if it goes up do x and if it goes down do y. I was more intent to see if I was actually right.

Everything on the long run is fine. Nothing to panic about. Just put it up here for anyone else having struggles with contingency planning. You can do it ahead of time just “Nike it”.

Its easier to say this than do it mind. Try and come up with a mind set ok i think it will do this.

Ahead of time another thing I could have looked at was given the nature of the bear market that we are in, in all likelihood was that it was going to go down. It did.

So my actions should have been to:

  1. Get USDT
  2. Set a stop gain and watch it go down. then rebuy.

So next time dont procrastinate and come up with that ahead thinking.

Crash