BNB this morning broke out of the triangle it had been trading within for nearly the last month and looks to be consolidating for a big impulse move upward once more. As you can see in the chart, the breakout has occurred and it seems to be creating a channel that is primed for a breakout very soon. If you are looking to trade this chart I would be getting into every upward move setting it to break even waiting for the breakout. This is because we have seen countless breakouts continue to consolidate until they end up breaking to the downside and if you get stuck in that trade you will lose a lot of $$$.
I took this quote to heart while watching one of the trading gods of our era Paul Tudor Jones documentary. He said, "if the average person spent 9% of his time worrying about how much you could lose you'd be a much more successful trader." That is because so often we get caught up in all the hype and think in a single trade we will become millionaires and before we know it we lost it all. So remember to always be playing defense while trading.
Trade set up:
What I mean by looking for an entry point can be seen in this chart. We saw a move from the top of the channel to the support and a sharp impulse move break that trend. Either wait for a pull back and a buy set up from this current move or wait until a breakout of the channel and a pull back. Either way set your stops on every trade to protect your assets. Now if you do enter the trade now and there could be 3 or 4 or 5 corrective impulse moves within this correction so you might have to get in the trade and out of the trade multiple times before you see upside. But remember that this one trade will be worth it because the upside on this is BIG.
Taking a look at the complete chart shows you the possibilities of where this could go and how sharp that impulse move we saw in January. You want to be in this trade in case we catch another one of those.
As always have a great day and an even better one trading. If you have any questions or comments please feel free to ask away and I will try to get back to you in a timely manner.