Sometimes we spend so much time criticizing the micro moves of tickers, we forget about the larger picture. We agonize over movements that are largely irrelevant like this most recent movement Coinbase has been making for the possible end of wave iii or beginning of iv. Regardless of which one it is, I expect price to tag $220-$240 before this larger wave ((3)) is done. That being said, not being a day trader myself, I'm not really too concerned with the fluctuations of $10.
Lots of companies, as well as other analysts, we're predicting Coinbase to tank with JPMorgan claiming it would and still will drop to $80. They were saying this when it was valued @ $115 while I was predicting it to go on another bull run. Needless to say, we jumped about 40% from that local bottom and I, along with some of you, were able to capture 30%+ of those profits. Not too shabby for 1 week or so if you ask me.
When market opens Tuesday morning, there is a high chance I may buy back in for another 20-30 shares with the goal of holding until it's in the low $200 area. That's another 12%-33% in profits if I can get in around $180 and ride to the top. I would set a stop of $173. Is 20-30 shares a lot? No, but I see no reason to swing for the fences every trade regardless of my confidence. With that amount of shares, at a 20% profit, is over $1000 in profits. Again, not too shabby if you ask me. As always, I will post if I buy any shares.
Don't forget, beginning February 23rd (this Friday), I will be dramatically changing my posting schedule here on trading view. My last regular post / update will be on that day.
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Due to the fact we overlapped what I have labeled wave i this morning in pre market, it causes me to question the micro count. For now I'm staying out. That could have been the larger wave 4 but I'm unsure as of now. A rule I try to follow is "when unsure, get flat". Until I get clarity I'll be on the sidelines
@TSuth any idea where coinbase is heading? Is it in bigger wave 4?
TSuth
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@mohsinusa I'll make a new post here soon tonight. I'm putting my son to bed right now
mohsinusa
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@TSuth that is great news. I understand you mentioned putting a stop at 173. Isn't 173 also another buy point? If ultimately it is going to hit 220's within couple of months then why putting a stop . I am not questioning your wisdom , just trying to learn.
@mohsinusa did you edit your comment? and I place a stop on every trade I make to protect assets. I'm not always right and don't want to lose a huge chunk of capital in the event I'm wrong. below $173 and the micro pattern is busted which could result in us dropping to the $130's or lower
mohsinusa
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yes, I edited. I got answers to both of my questions. Thanks for guidance. I understood that putting stop limit should be a rule regardless how strong we feel about something. I will use 173 as my stop limit if the stock went other way. Thanks again.