Exit points & stop-loss strategy for CTR/BTC price spike

Hi all.

This is the last video in this little series on the CTR/BTC price spike that we've been following for awhile, and today we're covering exit points/signals & stop-loss strategy.

Bear in mind that this is my personal way of doing things, and you shouldn't just follow this blindly. This is what works for me, and takes into account my personality and appetite for risk + fits with my trading strategy. Please do some research and adjust these according to who you are and what works for you.

Cheers and good luck,
RJR

Comment:

Some post-video thoughts: So I mention right at the end that my preferred way of doing things is to keep locking in profits until you get knocked out by a stop-loss. Remember that this is just my personal preference, and for me it removes a decision point - meaning that there's less pressure on me, and the choice is almost out of my hands.

This may not work for everyone, as you are always going to miss the high, and therefore lose some percentage points of profit. But trying to pick the high is, in my opinion, not possible. You never know where it'll stop, so become comfortable with selling a trade lower than the high. You need to see concrete weakness in a trade before selling out, and that means reducing profit levels.

Also, remember to give the market room to move. It's the number one mistake new traders make with stop-losses: they place them too tight. If you're not confident enough to risk 5%-10% on a trade, then you shouldn't be making that trade. If you're placing 1%-2% stop-losses all the time, you're going to get bounced out constantly and miss the rises. It's a judgement thing, and something that just comes with experience.

Comment:

It's also worth mentioning that your stop-loss increments are dependent on your expected target/price levels. E.g for a breakout you can use 7%-10%. For a smaller rise or trend, you might use 1%-2% increments.