About three weeks ago, I received feedback and frustration laden criticisms from some who suffered losses on BCH following my analysis. Yes, the slow, lethargic and grinding nature of corrections can wear anyone's patience and frustration level. I have often called this the "hurry up and wait" syndrome of cryptos. However, I want to use this blog post on why LADDERING WORKS! Once you have confidence in the laddered method of entry and exit, your emotions don't get the better of you. Also, if a ladder was not built very well, then it will not work well to remove the pain of buyer's or seller's remorse.
For new followers, what is laddering? It's a method of scaling in your entries and exits. I typically have 5 to 10 price levels to buy and these levels are selected using local resistance/support regions. Rather than buying all coins in a single transaction and most assuredly witness the price go lower and lower than your buy point, it's better to scale in. I've posted many examples of how exactly to build these ladders so you can search on google to review.
I want to share that my rungs for BCH were at these levels:
Negative Profit Rungs: $446, $410,
Profitble Rungs: $389, $381, $349, $316
Never Triggered: $278, $266, $213
On one response to a critic who had lost money on BCH by having caved to emotion and sold too early, I had discussed the "zipper" effect. This is when as price continues to grind lower and lower, the more rungs get triggered and filled. This also means the upper filled rungs turn to a loss. However, once price turns, the lowest rungs all turn profitable and zippers up the gap. That's exactly what's happened because as the below chart shows, today's high of $399 has not only zippered up the gap but made my trade overall profitable.
I did not panic, or stress out or become frustrated and cave into my fears. I've used this laddering technique for a long time and am confident in its ability to remove emotion.I've also posted multiple real time examples of entry and profitable sell ladders being filled. This trade on BCH is another example of why one should always ladder in their entries and exits. But, one must first learn to build good ladders. I learned through many, many episodes of failures!
I hope this is helpful!
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If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or consider buying me a beer:
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Legal Mumbo Jumbo: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.**