The previous week was interesting from the point of preparation for an important event in the USA! In the middle of the week, we had the Fed meeting and their decision about the rate. The strong news could push the crypto market in any direction. It gave us possible trade opportunities. I had to plan my work very carefully in order to avoid stupid mistakes and get benefits from this event. And I focused on this work!
At the beginning of the week, the market didn't give any opportunities to open swing or position trades. The market waited for the news release. So, the best idea for this period was to stay away from the market and I did it. I used the time to plan new trades considering mainly the bullish and bearish models.
The bullish model
It was based on the idea that the Fed wouldn't change the rate in the nearest future. This news could pump Bitcoin and altcoins. I decided to add new positions to Bitcoin and some top altcoins, and average the price of tokens. I didn't want to overload myself with too many trades as I had to act very quickly after the news release in order to open new trades at the beginning of a new upward movement.
The bearish model
It was based on the idea that the Fed would increase the rate in the nearest future or even during this meeting. It could dump the crypto market to new lows. I had to plan how to protect my capital in such a situation and how to trade at new lows. Also, I took into consideration that the % of crypto assets in my portfolio allowed me to do nothing, and wait for better prices just to average the long positions.
There was the 3rd model, I would call it Neutral, where the Fed did the best to show the market that they would be very careful with any decisions. Just I didn't want to focus on this option as it was the most useless for me. It wouldn't give a new pump as well as a dump with interesting prices for buying after that. That's why I considered this model but I didn't want to use it in my plan for that day.
Before the news release, I wrote the plan explaining what I would do in the market, which assets I would buy, and how much I would invest following the bullish model.
The day of the Fed meeting!
The market moved upward BEFORE the news release time. Sometimes it can be like that and I decided to follow this movement and the bullish sentiment. I added just the part of long positions from the planned volume. Because I was not sure that the bullish model would be in play!
The news was released and...
The news was not bullish! The news was not bearish!! The news was neutral, the most useless option from these 3 models!
In spite of it, the crypto market moved upward and it gave me about 1%-1.5% at that moment! Of course, knowing how the market moved after that, I would say that the best decision was to fix 1%-1.5% profit and be happy! But I decided not to fix that profit as the press conference after the news release could give additional details and help the market to continue the upward movement. I decided to hold new long positions and follow the sentiment in the market! The market waited for the press conference and more details as well...
But the press conference gave nothing interesting. The price reversed and moved downward. I had no reason to stay with my long positions and I closed them at the breakeven. The most important event of the beginning of 2022, which could give at least new trade opportunities... in the reality gave nothing! The crypto market didn't move upward too much, reversed and updated the local low.
After the week my capital stayed at the same point. The floating drawdown was about 10-11%.
I keep holding BTC, DOT, and 5 tokens with long-term targets. I have about 75% in fiat which is absolutely enough for buying at the real bottom.
My 20% monthly goal wasn't reached this month. And you know, I think it is fine! We have the market conditions which are absolutely not suitable for the spot trading. It is just the reality.
Sometimes markets are not good for the exact type of trading. Sometimes markets give good opportunities for making a profit.
The real trading looks like that!
What I need to do, just to focus on the proper risk and money management, wait for better trade opportunities and use them!
I wrote that for reaching the main goal of $1M, it will need 2-3 years. Right now, there is a delay in 1 month. So, even if the monthly goals will be failed during the further several months, it will be okay as well! But the thing is, the crypto market won't always be bearish! And when it becomes bullish again, after a good correction, it will be our time!
Of course, I keep thinking about how to improve my trading plan in order to be more effective in bearish and low volatility sideways periods.
There are some ideas:
1. I optimize the swing trading approach and use very close profit targets
2. I replace swing trading into day trading which will increase the profit and allow to move much faster in any market conditions.
I add margin trading. It is not the best option, but it can be an option to increase the buying power and get more income from a new bullish trend.
3. I noted all these options and I will think about how to integrate them into my work!
I hope, this post gave you some interesting ideas how to trade before/during the important news release, and how to optimize your work considering new conditions. I will be grateful if you support this post by smashing the LIKE button and sharing your feedback in the comments below this post! Thanks!
At the beginning of the week, the market didn't give any opportunities to open swing or position trades. The market waited for the news release. So, the best idea for this period was to stay away from the market and I did it. I used the time to plan new trades considering mainly the bullish and bearish models.
The bullish model
It was based on the idea that the Fed wouldn't change the rate in the nearest future. This news could pump Bitcoin and altcoins. I decided to add new positions to Bitcoin and some top altcoins, and average the price of tokens. I didn't want to overload myself with too many trades as I had to act very quickly after the news release in order to open new trades at the beginning of a new upward movement.
The bearish model
It was based on the idea that the Fed would increase the rate in the nearest future or even during this meeting. It could dump the crypto market to new lows. I had to plan how to protect my capital in such a situation and how to trade at new lows. Also, I took into consideration that the % of crypto assets in my portfolio allowed me to do nothing, and wait for better prices just to average the long positions.
There was the 3rd model, I would call it Neutral, where the Fed did the best to show the market that they would be very careful with any decisions. Just I didn't want to focus on this option as it was the most useless for me. It wouldn't give a new pump as well as a dump with interesting prices for buying after that. That's why I considered this model but I didn't want to use it in my plan for that day.
Before the news release, I wrote the plan explaining what I would do in the market, which assets I would buy, and how much I would invest following the bullish model.
The day of the Fed meeting!
The market moved upward BEFORE the news release time. Sometimes it can be like that and I decided to follow this movement and the bullish sentiment. I added just the part of long positions from the planned volume. Because I was not sure that the bullish model would be in play!
The news was released and...
The news was not bullish! The news was not bearish!! The news was neutral, the most useless option from these 3 models!
In spite of it, the crypto market moved upward and it gave me about 1%-1.5% at that moment! Of course, knowing how the market moved after that, I would say that the best decision was to fix 1%-1.5% profit and be happy! But I decided not to fix that profit as the press conference after the news release could give additional details and help the market to continue the upward movement. I decided to hold new long positions and follow the sentiment in the market! The market waited for the press conference and more details as well...
But the press conference gave nothing interesting. The price reversed and moved downward. I had no reason to stay with my long positions and I closed them at the breakeven. The most important event of the beginning of 2022, which could give at least new trade opportunities... in the reality gave nothing! The crypto market didn't move upward too much, reversed and updated the local low.
After the week my capital stayed at the same point. The floating drawdown was about 10-11%.
I keep holding BTC, DOT, and 5 tokens with long-term targets. I have about 75% in fiat which is absolutely enough for buying at the real bottom.
My 20% monthly goal wasn't reached this month. And you know, I think it is fine! We have the market conditions which are absolutely not suitable for the spot trading. It is just the reality.
Sometimes markets are not good for the exact type of trading. Sometimes markets give good opportunities for making a profit.
The real trading looks like that!
What I need to do, just to focus on the proper risk and money management, wait for better trade opportunities and use them!
I wrote that for reaching the main goal of $1M, it will need 2-3 years. Right now, there is a delay in 1 month. So, even if the monthly goals will be failed during the further several months, it will be okay as well! But the thing is, the crypto market won't always be bearish! And when it becomes bullish again, after a good correction, it will be our time!
Of course, I keep thinking about how to improve my trading plan in order to be more effective in bearish and low volatility sideways periods.
There are some ideas:
1. I optimize the swing trading approach and use very close profit targets
2. I replace swing trading into day trading which will increase the profit and allow to move much faster in any market conditions.
I add margin trading. It is not the best option, but it can be an option to increase the buying power and get more income from a new bullish trend.
3. I noted all these options and I will think about how to integrate them into my work!
I hope, this post gave you some interesting ideas how to trade before/during the important news release, and how to optimize your work considering new conditions. I will be grateful if you support this post by smashing the LIKE button and sharing your feedback in the comments below this post! Thanks!
Comment:
Oh... maybe there is a better idea! I search for Telegram channels where traders make 1000% each day, buy their premium signals and turn $10 000 into $1 000 000 just in a week! I think it will be my main plan how to reach the goal! Because it should work, right? They have so many followers, they show their Lambos, rich lifestyle...there are so many people who believe them... Definitely! It will work! 1000% per day!!!
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