Bitcoin Trading yesterday was a lot of waiting and doing nothing as we watched prices float along without any strong direction – but bitcoin trading today has a lot more action and uncertainty!
Bullish, But Aware
I’ve been a bull on bitcoin because of the formation in the price charts and also because I am sold on the potential for a mass swell of uptake on a personal level by thousands of people in countries all over the world, all at about the same time – for a million different reasons.
Personal Uptake Of Bitcoin On A Mass Scale
The swell this time will come from a steady demand for very small amounts of bitcoin from people who are just coming aboard… it will have flash bubbles and flash crashes, but the trend will be up, it will be strong, and then stronger.
Classic Technical Levels
The charts show us a unique moment in history when the prices have created a massive bottom formation at the bottom of the massive down trend we have been in for the year of 2014. Today we see bitcoin prices hovering at the very point of a triangle that also happens to intersect with the major down-trend lines! Presently bitcoin prices are brushing these important trend lines while at the very point of a classic chart formation.
A break above this trend line will be important – and a break down below technical levels at this time will also be an important moment for everyone aiming to go short in their bitcoin trading today.
This swell of bitcoin uptake and the chart pattern bias – has me wanting to be long, except when I have to exit because of Rule #1.
If I get stopped out, I’ll go short with a wee line, but I plan to be buying on every pull back.
I want to catch the starting time of the uptrend, when prices never come back to my entry point, but instead, the uptrend has begun and it’s time for me to sit back and hold the position… using extra margin from the profits to pyramid a larger position.
Risk I must take if I want to be more than a mercantile mollusk.
At the same time as being a Bull, I see the large potential for this chart formation to be a top formation and not a bottom formation – and upon breaking below key levels, I have my long-exit stop loss orders and additional orders that will put me short with a small exploratory position.
Watch This Bitcoin Trading Video – Feb 26th
A New Trade Always Requires Higher Diligence
The start of a trade is when the most care needs to be taken so that Rule #1 can be applied. After the trade has proven itself successful and it has passed key technical levels – then it’s time for Rule #2 and moving stop loss orders.
Once the profit levels and technical points permit for adding onto the position and the stop-loss orders have been moved up to lock in some profits… then the trade gets more breathing room with the trailing stop loss, and it requires less supervision.
Different Risks With Different Money
These are the principles I want to put into practice with the risks I take with my trading – first, I look for markets that are nearing historical low levels, and that are making 1-2-3 bottom formations. Bitcoin presently matches those criteria very well.
When I try putting on a position, I apply Rule #1 within 10 minutes if the trade does not immediately prove me correct. That is, I take very small risks with starting a trade, and I often chip out some losses with exploratory trades as the market is edging into formation.
However, once the trade has proven correct and I have 1 or 2% of unrealized profit – I will comfortably take higher risks with that initial profit and let the price come back and test technical levels near my original stops.
The reason I leave the larger risk for the profit in a profitable trade is that I have limited my market selection to those that are running near historical lows or historical high prices, and I aim to trade those markets that are making a major bottom or top formation.
Thus I am betting on finding the trend reversal spot, and preferentially trade those markets that are showing those formations.