A Few Observations on Stop Limits
And Trade/Bitcoin Update(s) and Bias/Strategy
Traders,
As I have begun to get the hang of trading with stops and in the safest manner possible over the last two years, I have noticed a few things:
I often will get stopped out by the liquidation events and left to dry as the price quickly wicks back up before I have a chance to re-enter (if that is my interest).
Determining stop limit prices is not easy and regardless of where I set them, I probably will still end up being disappointed if I allow my mind/emotions to start to take control.
In a bear market, stops will save me. In a bull market, stops (so far) have made it more difficult to obtain the gains that I once did during the last bull run(s). This again, is due to these liquidation events that leave us with the long wicks as price quickly rebounds and reabsorbs market interest.
Nevertheless, I have determined to continue safe trading practices here. Since starting this portfolio even though we were mostly long, only non-leveraged crypto, while crypto was going the other direction, we were still able to pull a small profit. Right now safe trading practices are making us the tortoise in the race of “The Tortoise and the Hare”, but I have to trust that once the market turns down, the practice of setting stops will save us from truly getting rekt. I have to trust what many more experienced traders than I have testified to time and time again that safe trading practices will help us outlive 95% of other traders who neglect to use them. With time, we can continue to improve our skills and eventually, we will be able to observe situations where safe trading practices have saved us, allowing us to remain in the game and trading strong.
Anyway, I am just voicing some current observations out loud here. The real reason of this post is to let you all know that I was stopped out of three of my recent entries, two of them ended in a loss. I was stopped out of SUI and OSMO for a loss and MATIC for a small profit. I am only interested in entering back into one of those at the moment and that is MATIC which remains bullish.
Bitcoin also still remains largely bullish above that multi-year support from 2019 that I continue to mention. Basically, as long as price remains above 64.8k, I remain bullish Bitcoin. So essentially, this recent price drop was just another liquidation event. My target of 80k remains intact before I reconsider entering more stable coin or possibly even shorting Bitcoin, something you all know I rarely consider. Until this time, I will continue to scour the boards for discounted alts and good trade setups.
There has been many a time in the past when I have regretted not following safer trading practices, hence my deep appreciation for them now lol. The consideration you give to trades is most definitely appreciated. Thanks Stew.