Bitcoin Down: This is Why We Have Downside Exit Targets
So that bounce didn't last long. Bitcoin produced my favorite entry pattern yesterday, the bullish u-turn as I call it.
This is why you use a stop loss and favorable risk reward ratios!
I constantly preach knowing both the upside and down side price targets on any investment you don't plan to hold forever.
The bottom line is whether you are an investor, swing trader or day trader you will be wrong. In fact, you will be wrong on investments and trades more often they you would like to believe.
Thus making sure you have atleast a 2 to 1 profit to loss ratio every time you enter a position.
This atleast lets you be wrong half the time without losing money. The higher this raito the better - 2 to 1 is the bare minimum in my opinion.
I just took a loss and was more than happy too
I added to my core BTC position a little over 24 hours ago when I got the bullish u-turn signal on the daily chart. The additional BTC was for a trade.
My upside target was 10K and my downside loss was 8,960. I was getting a 2.5 to 1 risk-reward on it.
The pattern did not work this time, bitcoin has sold off again and I got stopped out and took the loss and have no issue with it as it's all within the parameters of overall profitability.
I share this with you because no on bats 1000%
The video below discusses the trade and also the current price targets for BTC on the up and downside.
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Best Regards,
Disclaimer: All info in this post is my opinion and for educational use.
Free e-book: ScaredyCatGuide to Knowing What the Heck Bitcoin Is
Best Regards,
Disclaimer: All info in this post is my opinion and for educational use.
@scaredycatguide Is normal win and loss into business; the best is that you have experience doing it. I think about the risk, it depend for experience person's on charge.
Nicely stated. Most people think that successful traders are those who are correct most of the time. In truth, the successful traders are those who manage their money better.
^ this. Exactly this.
Solid article and great views on managing risk.
One small typo though: I share this with you because no ONE bats 1000%... unless "on" was correct and I'm missing something?
Yep, a perfect example of no one batting a 1000% hehehe ;-)
Typo Alert - the tag is #investorsclub - you left out the "s"
Upvoted ($0.13) and resteemed by @investorsclub
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Sometimes we gain more from losses! Stop limits are the best risk management tools for traders!
I believe this is going to be one of the last pullbacks before a massive rally.
I can't believe it, a crypto trader that actually uses stop losses instead of 'hold and pray' :-)
Thanks for sharing your loss, it shows honesty and integrity.