Really got my ass handed to me on a plate yesterday - my Bitcoin Trading was silly.
Started out with a profitable short position, that, in hindsight, if I have left it alone and sweated out the possibility of getting stopped out... I would have ended up in better shape.
I would have still been holding a profit if I had done nothing.
Instead, I took a little profit and then proceeded to trade both long and short throughout the day, switching from trying to pick the trend, to trying to swing trade.
I used Rule #1 several times - which was a good thing, because I was being whip-sawed like Fred Flinstone when Bamm-Bamm was shaking his hand and slamming him on the ground.
Without Rule #1, I would have lost much more.
My trading account was at 12.79 plus a little profit on my short trade, it was worth 13.15 - this morning, Feb 11, we are down to 11.45
That is an 11.7% drop in the total account value.
I traded too much, I tried to guess the long term future on bitcoin prices based on the breakout of a 123 formation on the minute charts. If I had done nothing - just sat with my profitable position... and waited - I would have been ahead of the game now instead of behind.
While 11.7% loss in one day is a real smack, the experience only cost me $1.34
Oh, and the entire day watching the price charts and bid-ask spreads, minute by minute... all day long.
I recorded a video of my commentary throughout the day as I traded and this morning I created a recap so I can come back to this date and review what I was thinking as the price charts made these moves.
In today's video in my trading journal, I complete a walk-through of yesterday's charts and talk about how I traded bitcoin, both on the long side, and on the short side, only to end the day with no position in the market and a string of small losses.
Today, Feb 11, I went short at 220.8900 on the Bitfinex at about 3AM central time, and had to close the position two hours later. Now out of the market and watching for another formation to complete itself while I watch for a breakout, higher, or lower!
Bitcoin Price Review Channel
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Started out with a profitable short position, that, in hindsight, if I have left it alone and sweated out the possibility of getting stopped out… I would have ended up in better shape.
I would have still been holding a profit if I had done nothing.Instead, I took a little profit and then proceeded to trade both long and […]