Why Many Continue to "Miss the Train" - Trading 101
Updated
Hello Traders. Thank you so much for the overwhelming support on the last post - we reached over 1200 likes - a new record and the best post of the month on Tradingview. Here I would like to go over why we all continue to fail buying the dips time after time from a market psychology perspective. This is a big problem for many of the traders, and we are all guilty of it. Let's take a moment to discuss all of the phases as shown in the chart above.
1. Your initial signal is here but you don't take it - because you are waiting for a second confirmation,
2. You wait for a retracement so you can enter into a trade, but doesn't happen,
3. Retracement comes along at the top, but you are thinking that you have already missed the big move,
4. You long at the breakout high, then the market dumps to support, and you think that the top is already in, so you sell,
5. Then it consolidates, then pumps. Price continues up and you start panicking that your approach was wrong.
You are now either positionless or have waited too long after a 300% rally. The most important part of this approach is that you must have an idea of how Bitcoin has behaved over the past years. I have made an extremely detailed plan on where we are on the timeline - which may help with many investor's buying decision:
In this post above, I show that Bitcoin is currently trading in a new bull run. Retracements occur, and it's important to position yourself within the correct timeline. As you can see, with the right indicators, we can position ourself even if we feel that we "missed the train" - as long as you know and can accept we are in a new bull run. Another important aspect is understanding the concepts of accumulation. Accumulations may either lead to a dump or pump, but if you follow the correct overall trend, we can easily see that we were accumulating for the upside.
It's all about positioning! This is a part of my risk management series so please make sure to look at all of the related posts for risk management.
Trade Safe.
X Force
1. Your initial signal is here but you don't take it - because you are waiting for a second confirmation,
2. You wait for a retracement so you can enter into a trade, but doesn't happen,
3. Retracement comes along at the top, but you are thinking that you have already missed the big move,
4. You long at the breakout high, then the market dumps to support, and you think that the top is already in, so you sell,
5. Then it consolidates, then pumps. Price continues up and you start panicking that your approach was wrong.
You are now either positionless or have waited too long after a 300% rally. The most important part of this approach is that you must have an idea of how Bitcoin has behaved over the past years. I have made an extremely detailed plan on where we are on the timeline - which may help with many investor's buying decision:
In this post above, I show that Bitcoin is currently trading in a new bull run. Retracements occur, and it's important to position yourself within the correct timeline. As you can see, with the right indicators, we can position ourself even if we feel that we "missed the train" - as long as you know and can accept we are in a new bull run. Another important aspect is understanding the concepts of accumulation. Accumulations may either lead to a dump or pump, but if you follow the correct overall trend, we can easily see that we were accumulating for the upside.
It's all about positioning! This is a part of my risk management series so please make sure to look at all of the related posts for risk management.
Trade Safe.
X Force
Note
How to create the perfect trading plan!
Note
Why you should never HODL up to a certain point!
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