$1M Trading Challenge: Week 2 - Pleasure

I liked the 2nd week much more than the 1st one. Maybe because I had less stress from outside, maybe because I stopped thinking about what other people would tell about my trading results and the drawdown. I started to enjoy trading and focused much more on the process.

The 1st week gave me new ideas how to improve my work through better combining swing and position trading approaches. I optimized my rules for placing stop orders. I started using the scaling out approach. I like the idea to use multiple stop orders at different points for positions trades. Also, I added to my work an idea where a part of the swing trade becomes a position trade when the market reverses in the hourly timeframes and reaches the stop point. I just close the part of swing positions and use the rest as the position trades. It gives a better balance between fixed drawdown and floating drawdown. Also, it allows staying in the market with active positions after false breakouts.

As for the trading results
I started the week from a false breakout below the major support which closed the part of my long positions. I like false breakouts as they give amazing trade opportunities. But that false breakout was in the wrong time. I would prefer to see an upward movement where I stay in the market with all planned trades. But again, we have to understand that the market doesn't care what we want.

During the week I added new swing and position trades trying to follow an upward movement with the main targets at the key resistance levels. I expected to see at least a correction movement in the bearish market in the daily time frame. My targets were close and I tried to get out from the drawdown using the correction movement.

I started the week with about 5.5% drawdown and during the week could make 2.5% of the profit. I didn't risk too much in each trade as the market stayed rather unpredictable and I was not ready to increase trading risks. So, I added new long positions step by step combining swing and positions trades into one trading idea.

What would be a great mistake?
It is obvious, to step in shit trying to make tons of money by opening too many long positions, increasing the whole risk, and facing a new dump after that.

As a result, I had to be very careful and trade considering a possible bullish movement and a breakout about the major support and new lows. To be honest, the market conditions during these 2 weeks were far from comfortable for profitable trading in a spot account using swing and position trading approaches. And for some traders, staying outside the market would be a better option.

Some of you may ask: "If the market was so unpredictable, why did you open long positions?"
Because for me, it was okay to trade in such market conditions. It is very simple to open a long position in the strong bullish trend and enjoy making a good profit. In the strong bullish market, we all are gurus and super cool traders! It is the perfect time for making a profit. But the main experience comes not from the bullish market.

You become a better trader in the choppy and bearish markets. When the market is unpredictable and tries to get your money.

In such market conditions, you have to do all your best in order to keep your profit and capital and pass through it having good positions for a new trend period. Also, I think you wouldn't happy to see low activity from my side. I'm responsible for entertainment, and any action from my side I share with you. That's why I had no option to stay outside the market and wait, wait, wait for the perfect market conditions. I like this period even it gives no profit and just increases the drawdown. But I know that it gives a lot of additional experience and valuable content. And of course, some of you like to see how other people fail, even it is a temporary situation. Let's Make Haters Happy Again!

And for those who asked me: "Why not open short trades?"
I'm against the idea to go short in the crypto market. But in this Trading challenge, I have an option to open short-swing trades. BUT!!! Short trades must be opened following the bearish setups as close to the resistance levels as possible. It is good to go short in the overbought market. But now, we have the oversold market where the price is at the bottom. It is a stupid idea to open short in such market conditions. That's why I had 2 options, open long positions or do nothing, and I picked the 1st option.


What about the situation after 2 weeks of trading?
- I stay in drawdown which is absolutely workable - about 3%
- There are some swing and positions trades with exact stop and profit targets
- I keep holding 5 tokens with long-term goals
- I improved my trading plan through better usage of swing and position trading approaches
- I added a scaling out method for my position trades
- I have more than enough fiat for buying new lows

In the previous post, I wrote that my monthly goal is 20% in average. Yes, probably in this month it will be impossible to reach this goal. Who knows how the market will move further? It can be like that. We don't have good market conditions and my main work now is more about how to defend the capital and avoid deep drawdowns staying active in the crypto market. But there will be good periods for making a profit. It is a matter of time!

So, I don't care too much that in this month I won't reach the profit goal. I will do it when the market gives such an opportunity.


Thanks for your attention!
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