FerroIgnique

Crashes of Future Past

Long
KRAKEN:ETHUSD   Ethereum / U.S. Dollar
Dear Journal,
Yesterday evening the Stoch RSI was out on 1h, 4h, daily and overbought on the weekly. I was seeing resistance at 390, and so seeing closed out my XRP and ETH longs for very nice gains, with the idea that I'd stop into ETH at 396 if kept running, I had a stop loss at 376 in case it turned against me. Being rapacious had served me very well, so I kept adding to my long with the equity from my trade, I was up 25% from 396 to 420 when the price dumped. My stop loss orders got filled, but Kraken was locked up and didn't tell me that so I tried manually closing the longs and it actually took me short, which went hugely in the money, but I couldn't market close those gains so on top of losing funds on the dump I also lost money on the short. The plan for the day was to get a stop loss order on the books that would have guaranteed me a profit just before I went to bed, but the pullback was so violent and sudden that I got justed, real hard. I had stops at 376 for all my positions so, thank goodness I was saved from liquidation. Instead of only having about 25% left, I have 50%.

As of right now XRP is up 1.5% for the day, Link is up 0.7, BTC -4.8% and ETH is -0.3, This reminds me of the 25 April '19 crash and 19 May '19. The lessons learned being, of course,
1. Once your position gets in the money, for the love of Pete, get your stop loss to protect your gains right away, don't wait for bed.
2. The exchanges are too jammed up, play the reversal, as you can't take profit and the snap back rally will tear your face off.
3.Once you get stopped out wait for a buy signal to get back in, which on the 4h chart will be 2-5 candles after the lowest candle on the reversal.

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