HAVE YOU ENCOUNTERED SITUATIONS WHERE YOU THINK THE MARKET IS PLAYING WITH YOU? (IT'S NOT PLAYING WITH YOU INSTEAD YOU'RE DOING THIS 1 EXACT THING)
If you have ever wondered how the market could read your mind and you keep on regretting your trading decisions. Then, you're in the right place.
Here's why.
There are times when the market flows accordingly and you enter the trend as well earning profits. Many times when you don't enter and the market moves according to what you've analyzed and predicted. There are also those EXCRUCIATING moments when you regret your trading decisions. We will create series of posts to list those moments to better help you in acknowledging these common moments.
Our first scenario when the market seems like its already falling and you take a short trade but something happens...
We have encountered someone who took a leveraged trade of 50x with a $100 margin. He was confident that the market would immediately fall off since 3 tops where already shown in the chart and most of the candlesticks that can be seen are bearish. After entering the short trade, he notices that the market moves differently and it hits his liquidated price. He regret his trading decision and went to sleep. After a few days, he checked the same altcoin and there he saw abomination. The same altcoin he entered a short trade after predicting it would fall off and took his liquidation. Has fallen so deep that his jaws drop.
What could this trader have done better?
You can have your own list of to-dos and not-to-dos to ensure you will not make a lot of mistakes in the crypto market. We will give you some example of what he could've done better. An altcoin's price showing that it might be falling is always normal every after hitting a resistance point. The resistance points are where most sellers would wait to sell their altcoins. Hence, it would be wise to continue checking the next possible price action of the altcoin. Another one way would be to check if there's a possibility for the price to do a pullback to test the resistance once more. Since these tests are highly likely and a pullback is necessary for the next impulsive movement. You have to always be patient and observe the next movements of the market. Rashly entering the market without thinking of what could happen next will really cost you your trades. Yes, there are times when you get lucky but that's just 2 out of 10 times or worse, it could only happen once in a blue moon. There are also other traders out there who are patient enough to just close the chart and check it after a few hours or a few days. There are still other strategies to check for the next step that you can take on a chart that's showing patterns like this. However, your trading mentality is what will take your trades to the next level.
These posts are for educational purposes. To guide the people who might still be struggling within the crypto market, those who are new to the environment and volatility and everyone else who needs it.
Stay wise, trade cautiously.