Crypto Decision Time..In every Traders lifetime there comes a time where Markets look like they are going to fly and fly. Markets push up quickly and they return to former levels seen along side former PA. The question arises... Will the level break and should I hold my longs against my will?....
And so the serotonin is released, the excitement begins and the FOMOer floods into the market AFTER the first move. The drop we saw recently rebounded on sustained market sentiment to the upside but you will notice the stall at very recent highs. The hype that arrives around crypto markets will often come around the time that the market mood looks more optimistic and other coins like BTC start to move.
But how should you handle it? Where do you buy? Where do you sell? Where do you exit? These are all things that are best known before markets move because if you are trading unnaturally (against the normal flow of the markets) then you are going to find things end badly, especially with such assets.
These are all questions Traders inherently face on such assets.
If you are a buyer and you want to get things right, naturally you'll have to buy on dips... And by dips we mean significant moves to comfortable areas of support with aligned risk. We are not house sellers looking to load into one move. We trade many dips and we exit many pushes up to key resistance for gains.
Selling HVA's gets dangerous as you can be roasted on hype moves. If you are selling you will also need to be a scalper with very, very light trading sizes. Your goal is to kill of moves up on gains and re-buy substantial dips.
Do not get caught in a rut and buy dips that are not far pushes. You will end up getting poor market value repeatedly and over time the worse deals stack up and losses begin to rise. Keep sizes small and smart and do not let your emotion push you to take trades you are not comfortable with.
It's advisable to have a MAXIMUM trade size and MAXIMUM Drawdown limit so you do not exceed what is comfortable for your capital. It is also wise to have separate ones for any crypto or indeed anything you are trading. The emotion aspect you will find is removed if you consistently take gains and have sufficient risk plans monitoring your overall risk constantly.
