Bitcoin Just Got Rejected
It has been really difficult to exercise discipline in such a bullish environment, yet I am really glad that I did. I closed my ETH positions at approximately $600 2 days ago. I also closed a second XRP position at the same time. When analysts are pushing out juicy price targets and the market is very bullish, it is exceptionally difficult to remain focused and stick to your trading strategies and personal interpretations of the market. With BTC dumping all the way down to $16300, ETH collapsed below $500 and wicked out at $480!
However, this may not be the end of this dump and so I have responded aggressively and yet cautiously at the same time. My strategies involve multiple entry points, factoring in worst and best case scenarios, so as not to be wiped out or miss out on great gains.
My Response To This Dump
The reason behind closing my previous trades, was that I was expecting a dump at any time and wanted to catch the bottom of that move. I had buy orders set that were triggered by this dump. I further increased my position by buying in at the very bottom at approximately $480. Currently, my first ETH trade has an entry point of $496 and my second trade is at $502. Some may wonder why I have entered new trades at these levels if I think the dump is not yet over! The answer is simple, I merely think that it could continue but what if it doesn't and what about my strategy that accommodates all possibilities?
I have a decent position open at these levels in the likelihood that prices bounce from here and move higher. I also have orders set at under $496 all the way down to $76. This is approximately 20 different orders at 20 different entry points. The sizes also vary, with the more significant weightings at key levels.
What This Means For My Trades Going Forward
In the event of prices rising from here, I have a significant position open in order to benefit and profit from the move. In the event that prices drop, I have a position open that is 20% from the recent top and I have multiple orders that will be triggered on the way down. Effectively, this means that my buy in mark will be brought lower by even further buys at lower levels. My next entry could bring my entry point all the way down to $440. It all depends on the weighting of the new order relative to the existing order. Either way I am going to profit.
I have also bought ETH BULL tokens, as they are amazing instruments to trade if you are able to catch the bottom of a big dump. Remember, these are 3x the actual daily price move, which can turn a dump into into a massive profit when prices rebound. Doing your best to catch the bottom is all you really have to focus on. As it stands now, if ETH returns to the recent top, a buy at these levels will generate a 100% profit. What is important to note is that a drop will also incur significant loss.
These are my ideas and responses to current market conditions, please do not view anything shared here as financial advice.