Bitcoin - What you've been doing this whole time!
Timing is everything! When you enter a trade and when you close a trade determines your rate of success, with this in mind let's answer a common question: Can you make it as a day trader in Crypto? The answer is simple and unequivocal, NO! Why? You don't have that many options, the coins are very few and they all move in the same direction as BTC. Other than the top 10 or 20 coins which are safe, you'll quickly run out of safe options. So how do you make money in trading Crypto? Become a position or swing trader. We'll talk about that on another post, now back to timing. Crypto has a different rhythm just like every asset class, you'll make a lot of money if you understand how BTC and crypto move in general.
WHY ARE WE ON THE SIDELINES AFTER WINNING?
If you jump in right away, especially after a winning trade you'll start to give back your profits a few dollars at a time. How? You'll jump in at the wrong time and set a stop loss, it will get hit and you'll do that over and over again. By the time we reach the bottom your profits are gone and maybe you'll have less money than before. However, if you sit on the sidelines with cash + profit in hand while we find the new bottom you'll have more money to invest and that money will in return make you more profits because you are buying at cheaper prices. Now you are starting to see how timing is everything, patience and discipline are what creates those large payouts.
WHAT IS BTC DOING RIGHT NOW?
Bitcoin is taking another shot at the 200 moving average on the 1-day chart, which was expected since the rejection from the last encounter on the 19th was not strong enough. What's our gameplan right now? To wait for BTC to conquer the 200MA and the white line above it decisively before jumping in. We now have a new low, we just have to wait and see if BTC takes off from here to make a new high. Lastly, are my two "Buy Zones" still in play? Yes, they are and they will be until the odds of going there are too low. When will we know? I will tell you as the odds begin to fade.
Looking at the 6-hour chart you can see that we are still interacting that small channel so it is pointless to jump in (especially since we are near the top, another phrase for we are near the end of a run). Bitcoin has to go and close over that old resistance line very soon (which is what it is doing at this point), it can then take a rest on it to stage the move on the 200 MA back on the 1-day chart. Keep this in mind; Your concern as a trader is not price, your concern is a safe entry point where the odds are in your favor and the reward is worth the risk. There's no need to make 5 trades a week, with just 2 to three a year you can make plenty of money. You just have to learn how to find those low risk, high reward bets, reach out to me I can teach you how.
My style of trading works and I've proven to you over and over again that simplicity is best over complexity. Keep your eye on a few battlegrounds and you'll get good hints about BTC's intended direction. Reach out to me if you want to become a better trader.
VERY IMPORTANT: Hitting the "Like" button is like a tip, please don't forget to do so after reading, this is your way of thanking me for my time and so I thank you for yours.
THE TREND: Neutral / Sideways
THE OUTLOOK: More downward movement expected.
WHY ARE WE ON THE SIDELINES AFTER WINNING?
If you jump in right away, especially after a winning trade you'll start to give back your profits a few dollars at a time. How? You'll jump in at the wrong time and set a stop loss, it will get hit and you'll do that over and over again. By the time we reach the bottom your profits are gone and maybe you'll have less money than before. However, if you sit on the sidelines with cash + profit in hand while we find the new bottom you'll have more money to invest and that money will in return make you more profits because you are buying at cheaper prices. Now you are starting to see how timing is everything, patience and discipline are what creates those large payouts.
WHAT IS BTC DOING RIGHT NOW?
Bitcoin is taking another shot at the 200 moving average on the 1-day chart, which was expected since the rejection from the last encounter on the 19th was not strong enough. What's our gameplan right now? To wait for BTC to conquer the 200MA and the white line above it decisively before jumping in. We now have a new low, we just have to wait and see if BTC takes off from here to make a new high. Lastly, are my two "Buy Zones" still in play? Yes, they are and they will be until the odds of going there are too low. When will we know? I will tell you as the odds begin to fade.
Looking at the 6-hour chart you can see that we are still interacting that small channel so it is pointless to jump in (especially since we are near the top, another phrase for we are near the end of a run). Bitcoin has to go and close over that old resistance line very soon (which is what it is doing at this point), it can then take a rest on it to stage the move on the 200 MA back on the 1-day chart. Keep this in mind; Your concern as a trader is not price, your concern is a safe entry point where the odds are in your favor and the reward is worth the risk. There's no need to make 5 trades a week, with just 2 to three a year you can make plenty of money. You just have to learn how to find those low risk, high reward bets, reach out to me I can teach you how.
My style of trading works and I've proven to you over and over again that simplicity is best over complexity. Keep your eye on a few battlegrounds and you'll get good hints about BTC's intended direction. Reach out to me if you want to become a better trader.
VERY IMPORTANT: Hitting the "Like" button is like a tip, please don't forget to do so after reading, this is your way of thanking me for my time and so I thank you for yours.
THE TREND: Neutral / Sideways
THE OUTLOOK: More downward movement expected.
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This is where we are in regards to the 200 moving average on the 1-day chart. Trying to get there but acting all shy about it at the same time. In this case, you just keep watching.
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So we have touchdown but we are now moving back, best to watch and see if we will escape the grip of this formidable sideways channel. If you put money in now due to FOMO you may regret it later, best to watch and see.
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Why is it such a bad idea to put money in now at the top of a sideways channel or at the top of anything from triangles to up or down channels? Simple, because once there, we are reaching the end of a run. You are the one putting money in as experienced ones are taking their money out (like I helped a lot of you do last time and it felt great!) and unknowingly you are buying before price drops, you then go down with the rest and sell for cheap at the bottom to experienced traders and your bad luck continues and their good luck never ends. TIMING IS EVERYTHING! PM me I can help you end this cycle.
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Yes BTC has gone up, but no need to FOMO it has not yet created a safe point to enter. Here is a concept I want to start drilling in. Price does not matter, what matters is a safe entry point. If you don't understand the following concept just know that one day you will: You can buy BTC at 3K and pay dearly and lose a lot or buy at 20K and make a bundle because it was a safe entry point.
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We continue to watch from the sidelines.
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This volatility is the one that some claim helps them make money, the reality is that there is very little money in this small moves and this is how money is lost. You keep jumping in when you see a green candle and panic sell when the red candle comes. You get death by a thousand cuts, your stop loss gets hit multiple times and your money goes to the exchange. What's your best bet? Stay out and wait for the crazy period to be over, jump back in when it is safe. What does "Safe" look like? I will tell you, your job right now is to work on your discipline and patience.
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Also BTC is already dropping some clues, can you see them in the chart above?
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Right at the line now.
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IMPORTANT: There is no safe entry point yet.
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10:35 PM EST: To be clear, we have to make it out of the white resistance line for us to even consider entering. Once above the line we'll look at indicators and how BTC responds to them, after that if there is a low risk high reward scenario we'll enter. We are not looking to make $100 or $200 dollars, we are looking for long term growth and so our entry has to be very safe. as you can see BTC is not exactly in a hurry to burst through that resistance line.
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KEEP LIKING THIS POST AND I WILL KEEP UPDATING AS LONG AS IT IS RELEVANT.
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BTC is still having a hard time crossing resistance, this is yet another clear example in real time why you sell once you hit resistance. It is hard to know the intent of an asset once it hits a strong resistance level. The logical thing to do is sell, book profits and wait on the sidelines to see if we are going up or down to support again. I closed all my trades on Saturday night when we hit 9100.00 I have not gone back in yet. I did not lose a penny of my profits to the market, I actually spent some of my profits and the rest I will invest again soon. What will make me go back in again? Another safe entry point, I only put my money on the table when the odds are in my favor. If you want to build wealth you follow that mentality, find low risk, high reward scenarios over and over.
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As you can see, we are stuck pretty good under that resistance line but, it is not backing down either.
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A closer look here at the action on the 4 hour time frame. As you can see the volatility is crazy, this is simply the exchanges eating up stop losses up and down, had we stayed in after hitting resistance this week is where you would have started to give back your profits. We are staying out until there is clarity of which direction we are going to next. This is exactly what I wanted to keep you away from this week.
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We go up and we go down, in the meantime those that rush in keep getting taken out by their stop losses. Don't sweat the small moves, we are waiting for confirmation. Check out the example below, we went up and above resistance and then came down to the very bottom where we bought cheap from those that got in without waiting to see if the move up was going to hold.
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So why FOMO is not good or useless? If BTC keeps going up it will generate an entry point, in the mean time it is too dangerous to go in. If you sold at $9100.00 and you jump in now without a plan or safe entry point you will get caught in a cycle of jumping in and out until you give back your profits, mostly in the form of fees and hit stop losses. Stay safe.
