Current ETC move target. More charts below
Tuesday August 2, 2016 6:00 AM
Overtrading: A fool and his money are soon parted. Yep
Trading is no easy game. After posting my third home run trade on ETC in about a week (+65%), and cleaning up a small losing trade on Steem (-25%), my account was at record highs and I was flush with cash.
Meanwhile, ETH, the cryptocurrency that started it all for me, looked horrible yesterday. I posted multiple tweets warning anyone who would listen and showing them why. Then, based on a single, unconfirmed buying pattern a few hours later, of course I went long ETH.
It’s true. While I waited for a buy signal, kept my position small, and the upside was there, none of that makes this trade any less foolish. I was chasing quick money with a short term trade when I am an intermediate term trader.
Add to my misery that the whole thing is now documented on Twitter for all to see, and you can see how I turned a great trading day (which don’t come along often) into a barely good trading day.
Patterns and indicators work an amazingly high percentage of the time, but absolutely, definitely not every time. You shouldn’t just trade when you see one, even if you are able to confirm it. It has to make sense for your overall trading plan! If you don’t have a clear plan and incredibly careful money management, you are bound to lose money the way I did yesterday.
All I can do at this point is focus on the positive (my account is still near record highs :-), and be grateful that my cash management keeps these mistakes manageable, because I’m sure, despite my best efforts, it will happen again.
Now, back to intermediate term trading
I planned to exit the trade at $592, but BTC was so strong around the $600 area last night I decided to hold and see what the patterns told me to do this morning. Here’s what I’m seeing that now has me 75% long (added 25% at $598):
ETC Ethereum Classic – How high are we going?
The patterns have been incredibly accurate in predicting a strong bull run for ETC, and that’s exactly what’s happened. Shorts have been barbecued and everyone (including me) got out too early.
Huge move, but the patterns say we’re nowhere close to done. Here’s what I’m seeing in the big picture – to be clear a pullback that could look big could happen at any time, but I’ll be looking for long entries for ETC on pullbacks rather than chasing long ETH trades for a while.
75% long BTC Stops TBD – will likely accumulate to 100% first
Flat ETH, ETC and Steem – will look for clear entries on ETC primarily
NOTE: NOTHING IN MY POSTS IS INTENDED TO BE TRADING ADVICE. Please do not base your trades on any information presented in the materials on this blog as it is for information and entertainment purposes only. You are 100% responsible for your own trading decisions.