ETHUSD: Relative Weakness Vulnerability Means More Waiting.

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
ETHUSD Update: New buy trigger appears while Bitcoin steam rolls toward its next high. Price is now challenging its steeper bearish trend line which is a positive. BTC is doing its part which is what we have been anticipating, while the concern is alts like ETH are still underperforming. This relationship can be interpreted as a sign of relative weakness which makes these particular coins very vulnerable to a retrace in BTC .

At S.C., we have been sharing ideas with our members about how we have put coins like ETH on standby until they can prove themselves in terms of price structure. This is a defensive measure that helps us maintain our objective of deploying capital toward the prospects that offer the greatest probability of a favorable outcome. We would rather give up the better prices in exchange for better probability.

This is where most who are new to this arena or investing in general get it wrong. Market timing is more about organization than anything else, not big profits. Following a simple set of well defined rules like avoiding relatively weak markets are what protect our portfolios from getting too heavy into a market that has greater potential to go lower.

Having a focus on profits, which is instinctive, is the first mistake. This is what leads to impulsive behavior and the gambling mentality. One of the most common errors I see are forced trades along with mismatched expectations. This would be when you are putting on trades every day (day trading) and expecting swing trade profit targets every time. If the broader moves are what you prefer, then high quality setups are going to be much less frequent compared to day trades. 2 - 3 high probability swing trade setups are considered a busy WEEK.

In summary, in order for us to start putting on swing trades or accumulating more inventory, ETH needs to close much higher. We share these precise details with our followers. We also emphasize the role and value of patience when it comes to waiting for a market to comply with criteria.

Professionals define a good trade by how well it adhered to the criteria that triggered it, not by how much profit it generated. A negative trade for all the right reasons is a good trade, while a positive trade for all the wrong reasons is no better than a loss. The wrong reasons will erode your account over the long run.

Consistency comes from structure and having a well defined plan. The objective is to isolate favorable conditions in light of the relative risk. And these conditions are presented by the market, not made up or imposed by "gut feel" or ego. They are also infrequent, which means more time will be spent watching and evaluating than actual trading.

Trading should be equated with waiting, which is far from exciting or glamorous. Marketers capitalize on the immediate gratification tendency of the herd by putting out information that caters to their need for action. And most new to this business who are still controlled by greed and fear do not have enough experience to see through their agenda. If putting capital to work efficiently is your goal, the focus should be developing a perspective and a simple plan to serve as your guide. The best place to begin is by learning to interpret a clean chart without any outside opinions or bias.

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