This is the second trading review, which again focuses on the cryptocurrency Safepal ($SFP). To see the article for the first review, you can click on the following link: https://www.publish0x.com/crypto-trading-newsletter/trading-review-cryptocurrency-safepal-dollar-sfp-xpzrmrw. This time I traded the crypto short, instead of long and I had a loss before. For transparency I will post both trading statements here:
I first made a loss on the trade, as I chased the price action down too much and got caught on a bounce. As the bounce seemed to fade off I reentered. This time my timing was way better. Sometimes the idea is right, but the timing is off. My experience taught me that it is best to reconsider the position and cut the position to reenter later, if the timing is not correct. On the chart down below you can see some of my entries. It was not one order, but many entries.
- Light blue was the first short attempt.
- Red was the cover of the first short.
- Dark blue marks the area of my reshort.
- Green the area of my last cover.
I did not perfectly short the top or cover the bottom as you can see here and the crypto most likely falls more (at least that is what it looks like right now). As a risk level of my reshort I used the recent high of around $0.80s. I stayed patient with my last covers, as the cryptocurrency was sliding down quite fast. As you can see on the 1 min chart below, it dropped from $0.64ish to $0.60ish in 3 minutes, so I decided to cover my last bit.
I hope this helps to understand my idea behind the trade and might help some of you.
Have a great rest of your weekend.
Niklas
Twitter: https://twitter.com/NiklasSchomaker
This is not financial advice, it is for educational purposes only!
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