Nothing like waking up and having fish for breakfast huh? Doesn't sound very good unless your a Big Fish. So getting up at 2am NYST Time, the first thing I do is look at my phone to check the market. YES THIS IS IT RIGHT! The bull is out of it's pen. So I turned on the computer and bought flat across the board, look at that power in BTC! Yes the markets don't lie correct, this is what I was waiting for we are headed to $6000 like I FELT we would, quickly check NO NEWS GREAT need to buy! Crap someone put an order ahead of me, cancel, readjust price buy, crap again it happened, cancel, readjust price, crap happened again, really readjust price, CONFIRMED, YES I'M IN! Then 5 minutes later it starts going the opposite way down. You tell yourself, yes it's ok it's going to recover. Continues down maybe I should sell? Wait a green bar it's bullish again! Crap a red bar now it's lower than my buy price. It's ok don't panic hold on it will recover. SELLLLLL!
If you haven't gone through this impulsive emotion at some point in your trading career your LYING! We all have, this is what small fish do, and BIG FISH know this!
You don't start out in trading or investing as a big fish, you start out as a small one with millions of other little fish. Some get eaten quickly. Others realize where they are in the food chain, and adjust to safer waters. Some are plain lucky and swim around always seeming to miss being eaten but eventually small fish in open waters get eaten!
How do we control this impulse? Well this morning I woke up at 2am, and as usual checked the market. WOW nice pop. I got up turned on the coffee' maker, took the dogs outside, came back in, poured a cup sat down at the computer and pulled up my charts. Let's take a look at what the charts are saying. This is my routine, and the first thing I say to myself, 1 hour of market movement is going to have little effect on my long term returns.
As you can see BTC had a nice $100 pop this morning. But notice the RSI, double top, failed at the same line it did the last time, starting from the same 36 level. Almost identical movements. ETH $10 Pop. RSI did not even hit the strength line on the RSI. LTC', popped through but quickly fell back, retested, and is headed down. DASH one of my personal favorites, touched the red line and again fell back. I can back test this pattern over the past week and see what happened after. Well it was nothing more than a fake break in previous pops, and history often repeats itself, not always but often. MarcP pointed warned about the fake break in his ETH article yesterday. Great read by the way.
Now some more experience traders see this pattern and can do a short term swing trade, but you must be well disciplined, and have reasonable expectations for returns and come out quick, your feeding on the scraps from the smaller fish being eaten. If your testing your strategy $25 get's you in the game and you can test your strategy with minimal risk. If your new this is what I would recommend if you feel the urge!
So nothing has changed in the market to make us bullish yet. I'm not saying it won't turn into a bull run but the charts are saying this is just the big fish scaring the little out into the open for Breakfast. You can feed on the scraps or wait for them to be full and stay on the sidelines. But control that impulsive emotion telling you that you are missing out! I hear all the time, whales are moving the market, manipulating it, that's why I lost money. OF COURSE THEY MOVE THE MARKET, JUST LIKE A WHALE MAKES WAVES IN THE WATER AND MOST OF US NOT EVEN RIPPLES! They use their tools, you use yours, this is why we must know our place at the table or you'll end up on the table as breakfast!
If you haven't gone through this impulsive emotion at some point in your trading career your LYING! We all have, this is what small fish do, and BIG FISH know this!
You don't start out in trading or investing as a big fish, you start out as a small one with millions of other little fish. Some get eaten quickly. Others realize where they are in the food chain, and adjust to safer waters. Some are plain lucky and swim around always seeming to miss being eaten but eventually small fish in open waters get eaten!
How do we control this impulse? Well this morning I woke up at 2am, and as usual checked the market. WOW nice pop. I got up turned on the coffee' maker, took the dogs outside, came back in, poured a cup sat down at the computer and pulled up my charts. Let's take a look at what the charts are saying. This is my routine, and the first thing I say to myself, 1 hour of market movement is going to have little effect on my long term returns.
As you can see BTC had a nice $100 pop this morning. But notice the RSI, double top, failed at the same line it did the last time, starting from the same 36 level. Almost identical movements. ETH $10 Pop. RSI did not even hit the strength line on the RSI. LTC', popped through but quickly fell back, retested, and is headed down. DASH one of my personal favorites, touched the red line and again fell back. I can back test this pattern over the past week and see what happened after. Well it was nothing more than a fake break in previous pops, and history often repeats itself, not always but often. MarcP pointed warned about the fake break in his ETH article yesterday. Great read by the way.
Now some more experience traders see this pattern and can do a short term swing trade, but you must be well disciplined, and have reasonable expectations for returns and come out quick, your feeding on the scraps from the smaller fish being eaten. If your testing your strategy $25 get's you in the game and you can test your strategy with minimal risk. If your new this is what I would recommend if you feel the urge!
So nothing has changed in the market to make us bullish yet. I'm not saying it won't turn into a bull run but the charts are saying this is just the big fish scaring the little out into the open for Breakfast. You can feed on the scraps or wait for them to be full and stay on the sidelines. But control that impulsive emotion telling you that you are missing out! I hear all the time, whales are moving the market, manipulating it, that's why I lost money. OF COURSE THEY MOVE THE MARKET, JUST LIKE A WHALE MAKES WAVES IN THE WATER AND MOST OF US NOT EVEN RIPPLES! They use their tools, you use yours, this is why we must know our place at the table or you'll end up on the table as breakfast!
Comment:
What's nice about crypto trading is you don't pay $5 for a trade, it's a percentage regardless of $5 or $50,000. This provides the opportunity for some of you new traders to dabble in trading with a very small amount that you can afford to lose. Test your strategy, adjust test again. FEMA = Failure Effect Modify Analyze! Continual improvement, which is a great book to read by Ed Demming!
Comment:
Can anyone identify this patter? Hint! It's not the H&S or the coffee cup pattern.
Comment:
The fish hook pattern ;) I mean the article is Fish for breakfast and shortly after we get that pattern. Had to post it. Sometimes a little humor takes the edge off!