HAVE YOU FOUND YOURSELF IN SITUATIONS WHERE YOU THINK THE MARKET IS PLAYING WITH YOU?
HAVE YOU ENCOUNTERED SITUATIONS WHERE YOU THINK THE MARKET IS PLAYING WITH YOU? (IT'S NOT PLAYING WITH YOU, BUT YOU'RE DOING EXACTLY THIS THING)
If you have ever wondered how the market can read your mind and you keep regretting your trading decisions, then you are in the right place.
Here's why.
There are times when the market flows accordingly and you enter the trend and make a profit. Many times you don't enter and the market moves according to what you have analyzed and predicted. There are also those times when you BARELY regret your trading decisions. We will create a series of posts to list those times to help you better recognize these common moments.
Our first scenario is when the market seems to be already falling and you take a short trade but something happens...
We have come across someone who took a 50x leveraged trade with a margin of $100. He was sure that the market would immediately fall as there were 3 highs shown on the chart and most of the candles that can be seen are bearish. After entering the short trade, he notices that the market moves differently and hits his liquidation price. He regretted his trading decision and went to sleep. After a few days, he checked the same altcoin and there he saw an abomination. The same altcoin that he entered a short trade with after predicting that it would fall and took his liquidation. It has fallen so deep that his jaw is dropping.
What could this merchant have done better?
You can have your own list of do’s and don’ts to make sure that you don’t make many mistakes in the cryptocurrency market. We will give you some examples of what you could have done better. The price of an altcoin showing that it might be falling is always normal after hitting a resistance point. Resistance points are where most sellers would wait to sell their altcoins. Therefore, it would be wise to keep checking for the next possible price action of the altcoin. Another way would be to check if there is a chance that the price will make a pullback to test the resistance once again. Since these tests are very likely and a pullback is necessary for the next impulsive move. You should always be patient and watch for the next market moves. Rushing into the market without thinking about what might happen next will really cost you your trades. Yes, there are times when you get lucky but that is only 2 out of 10 times or worse, it could only happen once in a long time. There are also other traders who are patient enough to close the chart and check it after a few hours or a few days. There are other strategies to check what the next step is on a chart that shows patterns like this. However, your trading mindset is what will take your trading to the next level.
Stay cautious and trade with caution.
