Folks, we have had some serious moves the past couple days and I thought it would warrant an update. I have seen a lot of people flopping on their ideas, i am glad mine have been fairly consistent as we have pushed up. See my previous ideas.
BTC has blown past this major resistance zone and has continued demonstrating a lot of strength. While RSI is oversold on the daily chart. It's just barely getting there on the weekly. Notice MACD on the weekly. It's sloping up and going into positive territory. This is a huge indication that we will continue to get more upward movement.
At this juncture what's critical is that we get a solid close on the weekly. this would be quite bullish and indicate we would get a further push to the upside. What was once resistance would then act as support and we would continue to go higher. While the 8500 area is another point, its relatively minor and I would expect the stall at that level to be minimal.
Since some people seem to be confused about money management, let me recap what I did and what I am doing. How you trade is entirely up to you. How you divide your portfolio is entirely up to you. What you risk in crypto should be carefully planned according to your situation with what you are willing to risk. My idea's are to convey not only a trade idea, but how you enter in all of those trades because I use a laddered strategy for any particular trade. Let me detail how I manage my trading account.
Portfolio management: When I trade, I determine what I am willing to trade with and lose then divide up my portfolio accordingly. There was a bit of a mix up in my terminology in the last idea where I said go in with 33% of your portfolio. What I was trying to convey was to go in with 33% of the SLEEVE you have allocated for bitcoin. I think most people understood that concept that follow my ladder strategy since I have conveyed that multiple times in the past. Let me explain more in detail. Let's say I have $20,000 I want to invest in crypto. I take 40% and invest for my hodl portfolio in various things then take the other 60% to allocate towards trading. Now I am left with $12,000 with a trading portfolio. What I do is divided that up into different sleeves of crypto's that I trade. I do this so my risk is diversified over multiple cryptocurrency pairs. I can capture various movements depending on what crypto is moving at the appropriate time. IE: out of the 12k I have, I would divide up the 12k into 3 sleeves. 4k for BTC, 4k for ETH and 4k for LTC. This way I can diversify my risk and capture various movements and pivot from one thing to the next as movement happens in the market. I hope this clears any confusion to my last idea when I said portfolio. Instead of portfolio, I meant invest 33% of your SLEEVE that you had allocated for BTC. I will make sure that I use the right terminology. This is how I trade and how I manage my risk. Of course, what you do is completely up to you. My goal is to trade with as minimal stress as possible and this works for me, along with my ladder strategy.
After we laddered in from 6.5k to 3.3k in 4 ladders. We are very much in profit. I took half my profits around 6,400. I am going to let the rest ride it out and put a stop just below 6.5k to give it some wiggle room. Regardless of how much you entered in on my last idea. You should be fully in profit right now. Even though we expect a push higher... It would be wise to protect your profits and put a protective stop around break even or higher to prevent giving up any gains. As always, the choice is yours.
Remember it's not about how much you make. It's about how much you don't lose when you are trading.
Don't stress, pick your points. There will always be another opportunity.
Best of luck trading.
-Sherem
BTC has blown past this major resistance zone and has continued demonstrating a lot of strength. While RSI is oversold on the daily chart. It's just barely getting there on the weekly. Notice MACD on the weekly. It's sloping up and going into positive territory. This is a huge indication that we will continue to get more upward movement.
At this juncture what's critical is that we get a solid close on the weekly. this would be quite bullish and indicate we would get a further push to the upside. What was once resistance would then act as support and we would continue to go higher. While the 8500 area is another point, its relatively minor and I would expect the stall at that level to be minimal.
Since some people seem to be confused about money management, let me recap what I did and what I am doing. How you trade is entirely up to you. How you divide your portfolio is entirely up to you. What you risk in crypto should be carefully planned according to your situation with what you are willing to risk. My idea's are to convey not only a trade idea, but how you enter in all of those trades because I use a laddered strategy for any particular trade. Let me detail how I manage my trading account.
Portfolio management: When I trade, I determine what I am willing to trade with and lose then divide up my portfolio accordingly. There was a bit of a mix up in my terminology in the last idea where I said go in with 33% of your portfolio. What I was trying to convey was to go in with 33% of the SLEEVE you have allocated for bitcoin. I think most people understood that concept that follow my ladder strategy since I have conveyed that multiple times in the past. Let me explain more in detail. Let's say I have $20,000 I want to invest in crypto. I take 40% and invest for my hodl portfolio in various things then take the other 60% to allocate towards trading. Now I am left with $12,000 with a trading portfolio. What I do is divided that up into different sleeves of crypto's that I trade. I do this so my risk is diversified over multiple cryptocurrency pairs. I can capture various movements depending on what crypto is moving at the appropriate time. IE: out of the 12k I have, I would divide up the 12k into 3 sleeves. 4k for BTC, 4k for ETH and 4k for LTC. This way I can diversify my risk and capture various movements and pivot from one thing to the next as movement happens in the market. I hope this clears any confusion to my last idea when I said portfolio. Instead of portfolio, I meant invest 33% of your SLEEVE that you had allocated for BTC. I will make sure that I use the right terminology. This is how I trade and how I manage my risk. Of course, what you do is completely up to you. My goal is to trade with as minimal stress as possible and this works for me, along with my ladder strategy.
After we laddered in from 6.5k to 3.3k in 4 ladders. We are very much in profit. I took half my profits around 6,400. I am going to let the rest ride it out and put a stop just below 6.5k to give it some wiggle room. Regardless of how much you entered in on my last idea. You should be fully in profit right now. Even though we expect a push higher... It would be wise to protect your profits and put a protective stop around break even or higher to prevent giving up any gains. As always, the choice is yours.
Remember it's not about how much you make. It's about how much you don't lose when you are trading.
Don't stress, pick your points. There will always be another opportunity.
Best of luck trading.
-Sherem
Kommentera:
Previous Idea:
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Where I detailed my laddered strategy and specifically called out when I entered in at 3.3k -
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Identifying the ascending triangle and then the change into the channel for the upward move:
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Please hit the like button if you benefited from this. Thank you!
Kommentera:
already above 7k, wow, its like the resistance points don't matter.
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If we zoom in here we can see some topping action on the 6 hour chart with RSi bending over and MACD softening. Looks like we'll get a slight pullback before moving up again. The tricky part here is what does the market think is relevant at this point? $6,500 was a suppose to be a strong resistance zone but the market didn't care, it blew right through it. So, we can look at both areas, new and old to see where the market will come back to. However, we'll have to wait and see which area the market dicates to be more relevant at this point.
