This is where patience and money management is critical. We went to cash before the alt-coin crash and though we missed BTC from $4400 for $4800, I would rather miss a trade, and be patient than force a trade with uncertainty. Several core coins are offering an opportunity to provide descent short term trades to cost average our core holdings. I'm liking several and I really like this one due to a very low risk reward as the channel has been pretty tight. These horizontal consolidation trades are less risky then some of the more volatile flag wedge and traingle setups!
Before trading define your plan, I buy here, if it gets here I sell, if it drops here I get out. It's not right or wrong it's about money management!!
Before trading define your plan, I buy here, if it gets here I sell, if it drops here I get out. It's not right or wrong it's about money management!!
Kommentar:
Trade active at $50.86 watching for a pullback. $55 target, $49 will look to close.
Kommentar:
What is the risk reward ratio? $55-$56 ultimate target range? I tell you how I set mine. $5 profit per coin target profit, if you only want to risk $1 for $5, then your stop is $49.86. Let's say it's $1.50 I'm willing to risk per coin. That's a 1 to 3.5 risk reward scenario. You adjust it depending on how confident you are in the trade. I like this one so I will go with 1 to 3.5 risk to reward. I've defined my risks. This is crucial to setting stop losses. I think it's 40% chance to the upside. So If I make this same trade 10x's I'm making 2.5 for every dollar I risk. This is critical to understand it's about probabilities over multiple similar trades and not just one.
Kommentar:
every dollar I lose sorry!
Trade wurde manuell geschlossen:
Trade closed $50.71 a loss of 15 cents per coin. I am fine with that!
