I been making the same mistakes again and again for when to take at least some profits. When buy very low it's good can HODL but why not take 20% off the top and buy back more again instead of holding the whole position again? Sometimes it for capital gains taxation purpose and cryptocurrency is a different game. If buy back into cryptocurrency and the whole market melts even more well you can be taxed on something you don't have anymore :) Cryptocurrency is a different beast!
The mistakes making is NOT looking at BOTH price AND volumes. Using other indicators like Stoch and OBV should be very very secondary and used with patience. However price and volumes since both being analyzed at the same time can be done in real time and should be your first to indicators
When see Price peaks increasing and volumes decreasing, if the last volume of that swing high was not strong, watch out take profits before the prices get manipulated and wonder what the hell just had happen. So many posts was staying Stellar Lumens now going to $0.80 US and over $1.00 US few days ago from the $0.50 to $0.60 US mark and blindly looked at it with confidence. Don't listen to most traders who don't do volume and price analysis, all other indicators are lagging and to be used with a lot of patience. With patience look at the 3 day and 12 hr chart comparison to buy back in again
When time to sell some of the profits, you need to look for more than 30 to 40% discount to have another good trade otherwise you risk the profits you take and playing the waiting game
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To buy again 30 to 40% discount apply to the bitcoin market from the swing high peaks. For other markets like Stock Markets, Commodities, Forex etc. we looking at 10 to 30% discount
Summary: Bitcoin market much more highly volatile compared to other markets so we need to look for at least 30% + discount to buy the next dips. That way profits are maintain and emotions are removed from making the next trades
@myregercity, we all make the same mistakes, to be good at trading we have to make mistakes sometimes few more to realize what the real problems
Trading indicators are great when use in higher timeframes (12 hr, 3 day and weekly). My rule of thumb volume/price analysis first and first only than only look at other indicators at higher timeframes to buy the real dips
rapidofr
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@SmallWindow, Great xplanation.... thank you. I still learn and make mistakes but hope to manage and take some profit. For now only bought two times in a to high position so had to wait for quite some time not to lose.
SmallWindow
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@rapidofr, ya i know how that feels, when have nearly treble your profits have a rule to take 20 to 40% of the profits. The buying at the top to do with FOMO (Fear of Missing Out), it can be controlled by looking at volumes and comparing to the price tops, only way to remove that emotion. The hardest part of making the next trade is patience, sometimes have to wait 6 weeks or even 2 months to get the best trade. A general rule of thumb: when see swing highs we want or demand a 30 to 40% discount, if we don't have that we don't buy
It's better to miss out than a losing position. Nothing worse holding a losing position for a very long time but having the power to buy with patience, their always an opportunity
I'm learning more to let the market come to you instead of trying to predict what the market could be doing
SmallWindow
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@SmallWindow, that 30 to 40% discount only applies for the bitcoin market for the next trade buys, other markets 10 to 30% discounts
SmallWindow
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Here's the diagram image without the other indicators that was distracting me not using price/volume analysis first
Trading indicators are great when use in higher timeframes (12 hr, 3 day and weekly). My rule of thumb volume/price analysis first and first only than only look at other indicators at higher timeframes to buy the real dips