Coin: Bitswift
Exchange: Bittrex
Bought at: 0.00028
Profit: 12.2%
Duration: 3 hours 30 minutes
INTRODUCTION
Today’s trade of the day, I want to highlight a mistake trade I took on a pullback and what adjustments I made to execute a successful second trade. The coin for today’s trade is Bitswift.
PULLBACK FAILURE
On July 22nd, a buy of Bitswift was taken at about 50% of a big runup anticipating a pullback. Little did I know this was a trade I should not have taken because of the nature of the rundown. I can’t explain technically why (this would have to be in another blog with more research), but from my examination of level 2 data if
a. The coin runs up very quickly, within 5-10 minutes
b. And then coin starts to rundown almost equally as fast
then, a buy for retracement should be closer to the original starting point and not at the 50% mark. The nature of the runup and rundown can best be examined at level two data particularly at the market history logs.
HOLD ONTO COIN FOR NEXT RUNUP
Two buys intending for pullback was not successful on the 22nd. Instead of selling for a loss, I would rather hold onto the coin to sell on the next runup. You would have to place your sell order ahead of time and wait. The downside is that I could be stuck holding the coin for days and sometimes weeks.
The next runup did happen within 2 days.
PULLBACK TRADE ADJUSTMENT
Bitswift coin ran up close to 50% within 10 minutes today. Again, the rundown was equally as quick getting to origin or dropping 50% within 15 minutes after. An order to buy at 0.00028 was placed intending to sell above 0.00031. The trade completed in 3 ½ hours with 12.2% profit.
DISCLAIMER AND CREDIT
Nothing here is meant as financial advice. This is just a strategy that I'm using as a cryptocurrency day trader. Please seek a duly licensed professional for any financial advice. Never forget, cryptocurrency trading is extremely risky and never invest more than you can afford to lose!
I'd like to give a special thanks to Luc for his selfless contribution in teaching cryptocurrency trading. Please visit his blog at: https://steemit.com/@quickfingersluc
Thanks for visiting my blog and happy trading everyone.