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Something that I noticed and a lot of pain comes from here.
If you have a shitty entry (because you mkt bought long on a breakout or you mkt bought in a range), you will experience a fuckton of pain compared to someone else who had limit orders @ bottom of the range
If you have a shitty entry (because you mkt bought long on a breakout or you mkt bought in a range), you will experience a fuckton of pain compared to someone else who had limit orders @ bottom of the range
since you had a shitty entry, your SL has to be set in the same place that someone with a good entry. So you either reduce position to reduce risk, or you use a tighter stop but which is prone to getting triggered.
I noticed this same thing happening yesterday with BTC going to 19.6k, a bunch of people bought the 19.4k breakout and said "fk it this is it, we gonna go to the moon" and had their stops below 19.25k (which was considered safe).
Not to mention people who bought even higher, because FOMO FOMO FOMO. The only sensible SL was below the entire range at 18950.
If you fomo into something, it's based on momentum, it's a scalp, it's not a long term play, you get out if things stop going your way.
If you fomo into something, it's based on momentum, it's a scalp, it's not a long term play, you get out if things stop going your way.
as an example for scalp play.
Price is 19k and starts going up, you mkt buy at 19.2k and market hits a peak 19.6k and the next 3-5-10 3m-5m candles consolidate the price at that specific price level, that's your exit, the momentum burst is over.
Price is 19k and starts going up, you mkt buy at 19.2k and market hits a peak 19.6k and the next 3-5-10 3m-5m candles consolidate the price at that specific price level, that's your exit, the momentum burst is over.
If by any chance the price makes a new higher high on the 3-5m candle which gets instantly sold into, you need to get out twice as fast. That doesn't mean you gotta short. You took a scalp trade you wait for a new setup and a momentum in a different direction.
For a swing trade, as another ex: you limit bought low 17000s on the 2nd big dump on the 4h divergences and you still have those coins and here you can play it 2 ways, trailing lows higher, for ex right now the SL would be below the 4h 50EMA or below.
If the market keeps trending you keep your trailing stop below the previous level. You will not sell the top, but you will sell as close to the top as humanly possible.
This is why Crypto Twitter is always stressed out, because they try to transform scalps into long term plays.
This is why Crypto Twitter is always stressed out, because they try to transform scalps into long term plays.
1 final thing: The bigger the % of your portfolio a possible loss can be the more pain you will suffer. 1% Loss on a portfolio is nothing to sneeze at but not brutal, 5-10% loss is something else. and I mean portfolio not trading account. . That pain comes from inside you.
The market does not hate you, the market does not care about you, unless you are slinging 100m+ orders around, the market is not even acknowledging your existence. Pain clouds judgement and makes you do stupid shit like close your shorts at the top, or fomo sell the bottom.
