This will be a short review about a trade on the cryptocurrency Safepal, where I posted an article about taking a short position, but went on to switch long later on. Below is the statement of my trade.

If you would like to read the article I wrote about Safepal, you can access the story via the following link: https://medium.com/coinmonks/trading-spotlight-cryptocurrency-sfp-3f999c9b482d. Just to inform you, this will be a trade that I profited on, but I will also make sure to post trade reviews where I lose as I have the intention to help and educate and not make anyone feel bad about their trading.

So Safepal ran up more than 100% up to $0.75ish and got drawn back down slightly afterwards. I wrote a trading idea about shorting it,if it bounces back up to around $0.70, which it did and provided a good entry point. I was not able to take the trade, as I was not watching the market at that time. SFP held these levels (~$0.62ish) very nicely and was making higher lows on the hourly chart. As it was curling upwards and a lot of people seemed to be caught in a short position, I was looking for a short squeeze. I entered my position and set in stop/loss and take profit targets, as I went to sleep and could not watch the market overnight. The blue box in the image below shows the area where I went long.

Hope this gives a slight understanding of why I decided to change my perspective on the before mentioned trade idea. Hope you are all safe and I wish you all a great weekend.

Niklas

This is not financial advice, it is for educational purposes only!

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