I’m Trading Bitcoin with a bullish bias these days.
Watch today’s Bitcoin Video on Trading:
Establishing A Position Out Of A Long Term Bottom
Trying to establish a bitcoin investment when the market is at a long term bottom, but not certain of the main direction – is a little tricky.
Chart patterns say the bottom is here and the trend is up, but I have been going long and getting out of the market far too often – and at too large a position. I have been using an ineffective blend of long term plans with short term risk exposure plays… and fortunate that I’ve been able to get out of each bad trade with very minimal losses.
Another Good Trade Gone Bad
While the bottom may indeed be here, and it’s upward and onward, I have been getting good initial positions – BUT, then I am adding onto the position too soon, only to have a minor retracement kill both my good starting position and my add-on position. This is another instance similar to the beginners bitcoin trading case study from a few days ago, and shows I have the knowledge, but not the habit.
While bitcoin price may be at a long-term bottom, there is a lot of movement up and now right down. It’s true, I was playing the short side before feb 9, but now that we have an up-swell in price and a breakout from these important lows, I am expecting an uptrend in bitcoin prices has begun and I don’t want to get caught short.
Between now and the next Bitcoin Video on Trading, I will keep watching for potential bottom formations – and this time,
- I will be using much smaller starting trades 0.02 btc to enter
- and I will be determined to wait before I add on to the position,
so that – if prices do retrace, my losses will be smaller.
Today’s trades – going long on strength, then closing the position when prices retrace. After the late morning break in prices, I’ll be watching for a little 1-2-3 bottom formation to risk some coin on…