Now is where patience pays off. Again these are only guides and are not definitive. It is important to zoom in at these levels and look for a breakout either up or down. $2900-$3000 was the last level we were looking at and if you were watching for the impulse trade, you could have shaved off a nice 5-10%. Ideally you could have made 20 but that is not something you want to bet on. I'm happy with 1-2% gains on quick trades and you should be too. If your short stack you should be looking to build up some cash for the next dip. I feel it's coming, and the correction is not over yet.
Good luck in the pits today!
Just so you can see the count we are in and the reason we have specific target points. This is a zoom in of the graph on the right.
1) Investments are long term you do NOT SELL them. You hold through the ups and downs.
2) Trading should be a totally separate account from your core holdings (investments) this is the money you risk NOT your investments.
3) If you want to start trading you must first learn to identify the trend FIRST and FOREMOST!!! If you cannot identify a trend this should be your focus, not EW and Fibb levels.
4) Fibonacci is not a crystal ball. They are levels of probability for a trend reversal. This does not mean it will reverse here or there, it's just likely. You MUST be following the trend to see if the level is in play still.
5) We could continue straight to $6500 from this point. This is why you do NOT sell Investments. I posted this morning if you invested 1k in the S&P and let it sit for 20 years, you made 10%+ annually on your return. IF you were out only 10 days out of 5000 your return went from 10% to 6%. This is HUGE over a life span.
6) You must learn how to graph trends!!! Same as #1.
Trading and investing are two different things, this is for someone that is trading not investing. I would never trade my entire asset portfolio, I trade only 15% of it. So if I have 10k for cryptos. $7,000 is in investments (core holdings) That I NEVER sell period!!! $1500 I trade with, and $1500 I keep in cash for a dip like we expect.
I just do not want to see someone sell and not be able to buy back their entire portfolio and I am concerned with some of the messages and comments that many are intending to do this. I do NOT recommend it. I've been investing and trading for 30 years. I can tell you from experience, trading all your money will result in a loss eventually. no different then if you go all in with pocket aces every time, eventually the 15% chance you would lose breaks you.
maximum will be testing 4k again imo