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CRYPTOINVESTOR’S DIARY. WEEK 3

Throughout the week, we saw a fall in the pair BTC / USD. Unfortunately, I did not use the only opportunity to get out of the position of 8800 (in a minus) relatively well, expecting that the correction is over, and there will be continuing growth. However, further developments have shown that the market is not yet ready to try again to break through the key level of 10,000. One of the most important factors in such cases is a cool mind and the ability to wait. Of course, I continue to monitor developments every day, in case of an extremely negative scenario, to fix the losses. But do not take hasty decisions, especially when it comes to trading bitcoin. What to do at a time when you have to “sit out” the drawdowns? It’s pretty simple. Firstly, you should not relax and stop diligently watching the developments, so that sudden changes in the market will not take you by surprise. You should always have a clear strategy for what you are going to do if the market continues to go against you. To fix a loss? Add a deposit to avoid margin calls? Or leave the position on the nearest “rebound”? Secondly, it is necessary to take time to study other trading pairs that would notice potential trading opportunities. If you trade on bitfinics, then in the arsenal there is a fairly large number of interesting pairs, which may prove to be more profitable than trading BTC / USD.

 

In general, for this week I closed only 2 deals on violas, and even more behind the schedule. I analyzed my decisions, and came to conclusions that I made 2 mistakes. The first banal one – I allocated too high percentage of the deposit for a pair of BTC / USD, but I should have at least distributed it with the alts in half. To date, bitcoin is very slowly changing its trend, and if the fall began against your position, you can get stuck for a long time, as it happened with me. In altkoins it is the same, volatility to bitcoin is much higher, and the risks of “freezing” the position are less. The second – I divided the purchase of positions in only two parts, despite the fact that the opening moment was far from optimal. Of course, in many respects this is due to the great pace set by the goal. But even in this case, if I went into positions at least 1/3, I could significantly improve my base price by catching the lower levels of the current correction.

 

Next week will in many respects be decisive for achieving the set goals. If bitcoin finally ends its fall and resumes growth, then I’ll be back in the game. If we go into the flat, or there will be a continuation of the fall, it will not only cross out all the chances of accomplishing the task for the month, but also put it in a quandary, because closing positions at a price below 8,000 will be already stupid, and few people can predict the bottom of the fall … So, the rush and the big risk led me to the situation where it is necessary to rely on the movement of the market, rather than on my own skills. If bitcoin goes up and I manage to get out of the position, I will significantly increase assets in favor of ALT / BTC trading, where transactions show much more profitability.