Trading Watchlist:
1. ZEC
As can be seen above, I submitted a ZEC long trade using a limit order, because I concluded that probabilities favoured the price action bouncing off of the diagonal trendline if the price action continued to decline.
This was all on the assumption that BTC would continue to consolidate, moving sideways, then eventually rise.
What actually happened was that BTC declined at the 50% level on its parallel channel, causing ZEC to fall strongly also:
Anticpating that there was a possibility that ZEC could trigger my entry, then fall, I set a stop loss that was far away from the price action to allow for market noise.
Unfortunate for me, my stop-loss level was exactly where more experienced traders anticipated that it may be precisely.
So what I thought was a clever level to place the stop-loss was actually the last of many places that the experienced traders knew that stop-losses were likely to be located.
Once it hit this level, then the price action completely rebounded.
Learning Point:
• I am going to have to consider reducing my overall trading capital risk by placing my stop-losses further away – to levels beyond question to experienced traders, which will take into account any possible market noise.
• Consider refusing to submit an altcoin trade unless BTC is at the bottom or top of a parallel channel – purposefully avoiding any price action movements that are positioned at the 50% mark of a parallel.
• I have got to make sure that when trading, I use the actual price action chart that is for the asset being traded; otherwise, the placement of my stop-loss, unnecessarily, runs the risk of being triggered by a few percentage points only.
2. BTC
As can be seen above, BTC has fallen so much that it increases the odds that it will rebound back to the parallel channel at the least.
This should have the affect of causing the price action of altcoins, in general, to also surge to the upside.
3. XMR
As can be observed above, the price action of XMR has hit a major support level on the daily timeframe; therefore, start scaling into a long position immediately.
Also, learning from my losing ZEC trade set the stop-loss level far from the any possible market noise.
Let’s see how this plays out.
Next Action
- Start scaling into a XMR long position as soon as possible.
- Continue to stay focus on primarily trading the crypto market only.
