BTC - Patience, Control and Money Management vs Hype n Hope
Updated
If you do not have control over your emotions you will never become a good trader or investor. So some Goldbug1 points.
#1 - Impulsive decisions are reactionary not preparatory.
#2 - Decide whether you are bullish or bearish in the long term. If you are a long term bull your buying into weakness, reduce exposure into strength. If you are a long term bear your selling into strength and covering into weakness.
#3 - Many want to be day traders and think with 10k they can trade their way to a lambo. Buy a lottery ticket if that's your goal. THE TRUTH HURTS - DEAL WITH IT!
#4 - Take responsibility for your actions, after all your the one hitting the buy or sell button in the end. If you are one of those that brags about your gains, then blames others for your losses, you need to sneak in your dad's closet, find your dad's big boy pants and put them on.
#5 - Decide whether your a trader first or investor. This decides your risk profile.
MY long term perspective on Bitcoin has not changed since August. I'm bullish! Read #2 above. As I said previously short term intraday price action is noise. I'm looking for levels to add to my position. We have been patient for months and have been sitting on decent amount of cash since December and February. The few trades we made have been small positions not large ones. Only recently have we started adding back into the market, but its slow and steady. This is a strategy with a plan opposed to it's going up, down, sideways, buy, sell, blah blah blah. We look for levels and structure not hype and hope.
Last night there were several alt-coins that triggered swing trade buys. OmiseGo, NEO, LTC to name a few. But there was no post and for the simple reason, Bitcoin is the herd leader right now and that buy signal failed. This is where having a broader perspective of market conditions kept us out of potential losing swing trades. My focus is on Bitcoin right now and until Bitcoin signals I'm staying, neutral, though we may take this opportunity to add to a few coins for the long term, by slowly entering into the market with small positions. If I want to buy $450 of OMG I'm coming in with $150 positions. I use this for an example so those with smaller accounts understand size does not matter the strategy is the same. Bad habits with small accounts lead to really bad habits with big ones!!!
Bitcoin was close to triggering a buy signal but fell apart quickly. Originally we mentioned a pullback to the low to mid 8000's was likely. Bitcoin reversed there and we entered a partial longer term position around 8400. We understood there was a likely chance Bitcoin pulled back to the 7800ish level which is why we only used 1/3 of the money allocated. No Hype, just common sense investing. Currently we are watching for a failed low or a pullback to the 7800 area. A break of 7800 brings into play extreme support around 6638 to 7400. I am a buyer there and would be looking to add across the board. Keep in mind I am long term bullish for two reasons.
#1 - I believe in the space
#2 - When we least expect it, the SEC will provide regulations for ETF's. It's getting close as many firms are already positioning themselves. It's inevitable and I want to be in when mainstreet arrives. Keep shorting on margin and see how that works.
You can follow the hype and hope for gains, or position yourself for the long term. The risk is being short this market not long. If you play poker would you go all in with pocket 6's preflop? Think of investing as always getting pocket Jacks, and trading, always pocket 6's. That's how you play the game. Better position you bet a little more. There is no difference in trading and poker positioning. All in with 6's preflop after a prior raise at a cash table? can't wait for the comments.
#1 - Impulsive decisions are reactionary not preparatory.
#2 - Decide whether you are bullish or bearish in the long term. If you are a long term bull your buying into weakness, reduce exposure into strength. If you are a long term bear your selling into strength and covering into weakness.
#3 - Many want to be day traders and think with 10k they can trade their way to a lambo. Buy a lottery ticket if that's your goal. THE TRUTH HURTS - DEAL WITH IT!
#4 - Take responsibility for your actions, after all your the one hitting the buy or sell button in the end. If you are one of those that brags about your gains, then blames others for your losses, you need to sneak in your dad's closet, find your dad's big boy pants and put them on.
#5 - Decide whether your a trader first or investor. This decides your risk profile.
MY long term perspective on Bitcoin has not changed since August. I'm bullish! Read #2 above. As I said previously short term intraday price action is noise. I'm looking for levels to add to my position. We have been patient for months and have been sitting on decent amount of cash since December and February. The few trades we made have been small positions not large ones. Only recently have we started adding back into the market, but its slow and steady. This is a strategy with a plan opposed to it's going up, down, sideways, buy, sell, blah blah blah. We look for levels and structure not hype and hope.
Last night there were several alt-coins that triggered swing trade buys. OmiseGo, NEO, LTC to name a few. But there was no post and for the simple reason, Bitcoin is the herd leader right now and that buy signal failed. This is where having a broader perspective of market conditions kept us out of potential losing swing trades. My focus is on Bitcoin right now and until Bitcoin signals I'm staying, neutral, though we may take this opportunity to add to a few coins for the long term, by slowly entering into the market with small positions. If I want to buy $450 of OMG I'm coming in with $150 positions. I use this for an example so those with smaller accounts understand size does not matter the strategy is the same. Bad habits with small accounts lead to really bad habits with big ones!!!
Bitcoin was close to triggering a buy signal but fell apart quickly. Originally we mentioned a pullback to the low to mid 8000's was likely. Bitcoin reversed there and we entered a partial longer term position around 8400. We understood there was a likely chance Bitcoin pulled back to the 7800ish level which is why we only used 1/3 of the money allocated. No Hype, just common sense investing. Currently we are watching for a failed low or a pullback to the 7800 area. A break of 7800 brings into play extreme support around 6638 to 7400. I am a buyer there and would be looking to add across the board. Keep in mind I am long term bullish for two reasons.
#1 - I believe in the space
#2 - When we least expect it, the SEC will provide regulations for ETF's. It's getting close as many firms are already positioning themselves. It's inevitable and I want to be in when mainstreet arrives. Keep shorting on margin and see how that works.
You can follow the hype and hope for gains, or position yourself for the long term. The risk is being short this market not long. If you play poker would you go all in with pocket 6's preflop? Think of investing as always getting pocket Jacks, and trading, always pocket 6's. That's how you play the game. Better position you bet a little more. There is no difference in trading and poker positioning. All in with 6's preflop after a prior raise at a cash table? can't wait for the comments.
Note
Still feeling Bearish? Sentiment is changing from bears being cautious to bulls being more aggressive buying into the dip below 8k last night.Note
From the article on market sentiment and structure. 
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