LTC - When a setup fails ego should lose to career longevity
Hello all,
Today's post is more about professionalism in the face of failure then reporting any new setups. Recently, I had started to make the case for the Alt coins and their long anticipated catch-up rally to BTC. While I still do feel that scenario has a high likelihood of playing out, this production is all about LTC's recent failure and how I acted in the face of the failure.
I personally am a big fan of the 'double bottom' price pattern (W's) to setup up long trades and whenever I see a double bottom within a double bottom I get really excited. So to that end, I bought the double bottom within the double bottom on LTC (indicated level on chart above) with the anticipation that LTC might do a similar bullish harmonic price pattern move that BTC did and/or at least test the highs at/near $14.20. I was willing to risk to the bottom of the double bottom (10.06). This represented about $1.00 of risk for $3.00 potential reward. Put it all together and I felt the setup was within my plan and I took it.
As I have repeatedly stated in the past, I have yet to meet a trader who was/is 100% accurate and I simply do not believe such a thing exists. Indeed, as a prop crude oil trader, many of my peers would shoot for 60% accuracy. The key here is, when they were right they got paid 2 to 3 times how much they lost when they were wrong.
So this brings us back to my LTC long setup. It indeed failed and now managing the loss is really a testament to my professionalism and how it's handled is a direct proxy on my career longevity. As a broker I would watch people sit on losing positions and literally let months/years go by enduring the loss. Not only does this do great psychological harm, but it also ties up capital which may have found new (maybe even better) uses. I shall not take that road. I am more than comfortable admitting the setup failed, exiting at my stop level and booking the small loss. I have done exactly that and shall now move on to new ideas.
Cheers all and hope it helps
If my charts help you, or you use my indicators...
please consider a BTC donation to allow me to
continue my work :
1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5
& follow me on Twitter CRInvestor
Today's post is more about professionalism in the face of failure then reporting any new setups. Recently, I had started to make the case for the Alt coins and their long anticipated catch-up rally to BTC. While I still do feel that scenario has a high likelihood of playing out, this production is all about LTC's recent failure and how I acted in the face of the failure.
I personally am a big fan of the 'double bottom' price pattern (W's) to setup up long trades and whenever I see a double bottom within a double bottom I get really excited. So to that end, I bought the double bottom within the double bottom on LTC (indicated level on chart above) with the anticipation that LTC might do a similar bullish harmonic price pattern move that BTC did and/or at least test the highs at/near $14.20. I was willing to risk to the bottom of the double bottom (10.06). This represented about $1.00 of risk for $3.00 potential reward. Put it all together and I felt the setup was within my plan and I took it.
As I have repeatedly stated in the past, I have yet to meet a trader who was/is 100% accurate and I simply do not believe such a thing exists. Indeed, as a prop crude oil trader, many of my peers would shoot for 60% accuracy. The key here is, when they were right they got paid 2 to 3 times how much they lost when they were wrong.
So this brings us back to my LTC long setup. It indeed failed and now managing the loss is really a testament to my professionalism and how it's handled is a direct proxy on my career longevity. As a broker I would watch people sit on losing positions and literally let months/years go by enduring the loss. Not only does this do great psychological harm, but it also ties up capital which may have found new (maybe even better) uses. I shall not take that road. I am more than comfortable admitting the setup failed, exiting at my stop level and booking the small loss. I have done exactly that and shall now move on to new ideas.
Cheers all and hope it helps
If my charts help you, or you use my indicators...
please consider a BTC donation to allow me to
continue my work :
1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5
& follow me on Twitter CRInvestor
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.