Hello friends of Project Hope, I hope you are well. Today, I want to talk about unexpected market movements, and because it is best that we work based on the long term, because if for example we do intraday trading, this can be quite complex, it is impossible to know how the market will react, but knowing that for It usually follows an upward trend in years, playing long term the chances of losing decrease.
The thing is that to be able to do it you have to be very patient, and this is where many of us can fail, due to the fact that we want quick profits, which are not guaranteed in any way, but there are more possibilities in the long term than in the short term. term, I am quite clear about that, even so, do intraday trading, and that is why this post, because yesterday I was surprised with the bearish movement of Bitcoin.
As you can see in the graph above, I usually trade intraday what are breakouts of trend lines, and generally I tend to respect it very well, once I enter, I look to get at least one to one, I take profits, and then I put Break even, with the intention of protecting the trade once I have taken profits. When it continues in the expected direction I obtain more profits, but if it returns to the entry point, the operation is already closed but with a profit.
In the image above you can see how I entered based on my operation, once the break of the trend line that I had drawn in 30 minutes had been made, with the intention of taking advantage of a short-term bullish momentum, but this did not occur. generated, on the contrary, the operation went to Stop Loss, as can be seen. And at these points I like to highlight the importance of having entry points and exit points*, and the need to take care of capital, which in this case I do with the use of Stop Loss.
If I hadn't done it this time, I would have had a loss of at least 4 times what I would have wanted to risk, and my psychology would not have been okay with that.
But you see, the market is unpredictable, at this point, hours after this decline in price occurred, I have no idea why it suddenly went down so hard, that's why trying to add market direction has no margin. of certainty, that is why we operate in trading with what probabilities are, this is crucial to understand, and also, add risk management to it, obviously.
But it is part of what we have to assume when we are in this economic environment, because obviously it happens in cryptocurrencies, but the same thing happens in the traditional market, stocks often have that type of falls, so it is necessary to strengthen our psychology if We really want to be immersed in these markets. I hope this post has been of interest to you.
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"Wow, what a insightful post! 🤓 Thank you for sharing your experience with intraday trading and the importance of having entry points and exit points 💡. I completely agree that patience is key when it comes to long-term investing, but it's also great to learn from unexpected market movements like the one you experienced yesterday 📉.
I'm loving the emphasis on risk management and capital protection in your post 🚨! It's so crucial for us traders to prioritize our financial well-being while navigating the ups and downs of the market.
As a member of this amazing community, I'd love to hear more about your experiences and insights. Share with us what you're currently trading or investing in? 🤔
Also, don't forget to vote for witness @xpilar.witness by heading over to https://steemitwallet.com/~witnesses👍! With your support, we can continue to grow and thrive as a community. Thanks again for this engaging post, and I look forward to reading more from you in the future! 😊"
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