before you start,
you need to check out this crypto - exchanges : https://goo.gl/cT6Z9n
for your #succesful #investments
Dear friends! I'm thinking to start a parallel series with the beginner mistakes where I post some of my past private trading ideas in order to #show you how my #strategy works and how the markets move after the trades activate. This will give you a #visual #examples that you can #follow to understand where your emotions could get in the way of a #trade
If you guys like this idea, let me know, and I will #post more of them. This way, you can #learn with 0 #risk
The first trade I will make public I published on the 31st of March as a private idea here:
Trading Signal for Ethereum (ETHUSDT)
It was based on a #bullish divergence which gave a trend reversal signal. It was a good #opportunity to open long trades not far from the possible bottom. Back then, we could not be sure that was the actual bottom, but the indicators I use showed me the #opportunity and I took it.
I wrote the following info about this signal:
"The trading idea is based on a bullish divergence which gives a trend reversal signal. MACD supports the upward movement. ADX line falls and it allows opening long trades. Entry level is 425.00 with stop orders at 355.00 level. Profit targets are 490.00 and 680.00 #resistance levels."
- I had entry at 425
- Stop loss at 355
- Profit Targets 490 and 680
The trade was #activated about 3 days later (based on Poloniex crypto exchange) and it temporarily reversed to 360 level. That was close to the stop loss. But because I placed calculated well my stop loss, I never had to close this trade. After staying around 3 days at the 360-370 level, ETH went up.
It reached #profit target 1 on the 13 of April, so 13-14 days after it was posted. It went sideways for a while and reached the second #target on the 24th of April, 24-25 days after
- Money #Management : for this particular trade I used 10% of my trading #capital for ETH. The rest I kept for other ETH trade opportunities that may have appeared while this trade was active.
- R:R was 1:0.92 for the first target and 1:3.64 for the second #target
- My first target #profit was 15.29% and the second one was 60%.
So, even if the trade was under the entry level for many days, I did not close it - because I had a strategy, defined my exit levels, and had no stress with the size of the position I was using. I was risking 16% of 10% of my trading capital in ETH so 1.6% of my capital roughly.
Second, I waited 25 days for the trade to close. Again, I felt no #pressure or #impatience to wait for this to finish. When other opportunities came, I had more trading capital available.
As you can see, patience and following strategy have helped me in a successful trade.
If you don't like this trade and it does not fit your strategy, I hope you #understand that each trader can have a different strategy. This is mine, it gives me profit on the long run and I am happy with it.
If you enjoyed this mini lesson #show it to me: like this post and leave a comment and I will be happy to post more of them, both #profitable and lot #trades (as trading is) as soon as I finish my beginner tips lessons, which are a lot more time consuming for me!