In this chart, we show how seven trades would be executed and with said trades increase our profits while minimizing our risk. Closing our trades early protect us from any possible "flash crash" situations.
If you bought 1 BTC -2.68% at 7-19-2017 and held until 11-17-2017 you would've made a 217% profit! If you bought 1 BTC -2.68% at 7-19-2017 and traded it consistently until 11-17-2017 you could've made more profit by using this method. 306% profit in this example!
Why not just hold? In some markets, a price can reach a certain point and not return to it for months or even years.
Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position. In these specific trades, we use resistance, support, candlestick patterns, and flag patterns as our confirmations. Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position. With every trade that is made, stops and take profits are adjusted with each position. Zoom in on each area to see why a trade was executed!
There are trading opportunities every day. Don't be in such a rush to always have a position open. Trading emotionally is an easy way to get burnt. These calculations are based on the starting principle of $2,427 (1 BTC -2.68% )
In the related idea, I consistently enter a trade and when profit is taken- We wait for a pull-back to re-enter.
Now how can you use this strategy to your benefit? When you open a position and have your stops in place, and when you're in profit keep a close eye out for reversals; when the price begins to reverse close your position and continue to observe the price. When the price is done correcting and is lower, watch for a bullish reversal to continue its run. When this is done re-enter with new stops.
FAQ Couldn't you just have held since $2,427? Absolutely. You would've still made a 200%+ return. But this post is to highlight how we can increase our profits dramatically while protecting ourselves from risk.
I don't trade flags or some of the techniques used to predict a movement. What should I do? Regardless of how you predict price movements, you can refer to this as a way to trade a market consistently in order to make more profit.
What if you closed it and it kept going up? At times it's better safe than sorry. What if we closed it and dipped and had one of its regular 40% corrections? If this is the case, we'll wait for it to pullback then look for a re-entry.
I definitely don't have the time to be watching charts constantly to be able to do this! Anything worth doing is worth overdoing.
We appreciate all feedback and suggestions, if you have any feel free to comment below! Wish you all the best.
Created this post when BTC was around $17,000. Hopefully, we helped some people out and they took profit, and protected themselves from risk with our strategy!
Awesome piece. Thank you so much for taking the time to put together so well. Does not look like it was an easy feat.
162Trading
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@cryptoaccount, Thank you! Yes, this took me a VERY long time to make this!! Hope this post helped!
modotir
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@162Trading, so are you providing this signals for sell and rebuying ??
DaKaptin895
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You motivated me man! I’m really goin to study charts and read a couple books on learning these to be able to trade!
162Trading
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@DaKaptin895, That is good to hear, If you ever need help don't hesitate to message us! Thank you for the real kind words.
bluedog360
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excellent write up :) sharing this with my friends new to crypto
Dimu
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Hallo! i sold 1.17 btc at 13 600, i wanted to reBuy it at 12900-13100 and.... and then btc was 14 500-15200 and i was still waiting for downtrend...
All traiders were screaming about 12800-13400...
So... now 16 300-17000 .. What can u recommend me? Buy at market price or wait for 15 000?
Or enter in some Altcoin and then buy Bitcoin?
dent77x
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A good basic introduction to how to profit from the movements btc does on a daily basis. Thanks mate :)
A980388
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Thanks for making it so simple for everyone to understand, similar like compound interest.