..lolz ...its all good
I think you should read a good book called "trading in the zone"
You need a dose of the "PSYCHOLOGY of TRading "
Its not about being right or wrong ...but more about defining your risk and adapting as soon as information says there has been a change
But is it though?
I see a whole lot of euphoria but am having trouble identifying where all the new adopters are. Could it be that this break out has been triggered by the same old fratnernity of pre-existing Bitcoin investors and shark manipulators? If so, then for how much longer can Bitcoin continue to go vertical. Taking a long punt a few days ago would have been a class trade. Taking a long yesterday when Bitcoin was already in high $400s would have taken a lot of faith in Bitcoin, but would also have turned out to be a class trade. Going long now would be fucking insanity and who knows, may still even turn out to be a class trade......but having just made the worst trade of my life, I cannot allow myself to move a muscle regarding any Bitcoin investment, which in the distant future, will only be of the long and holding variety. Any move I make at the moment, is bound to be the wrong one, so I aint making any move. There wasn't a single Bitcoin trade that I have made, where had I shown patience and held onto my position, need I have taken a loss on. Unfortunately for me I chose my latest and final trade to exercise patience and extreme risk tolerance in the face of common sense. Had I not came out trade yesterday at $512 (where Bitcoin happens to be right about now), then my whole Bitfinex trading account sum would have been liquidised at $546.65, as Bitcoin hit $548. The fact that I chose this point to finally 'grow a pair of balls' has got to be the universe telling me something about myself and what I should or rather shouldn't be doing.
I am not touching Bitcoin with a 10ft long shitty bargepole. Perhaps you have indeed read "Trading in the Zone"? My psychological phase will no doubt be well documented. With that in mind, how many more do you think they are, bear and bull alike who are thinking just like me? How many more have taken big enough hits in Bitcoin to realise that they need to keep the fuck away from it?
If us Bitcoin shell shock victims are going to return to Bitcoin, are we going to do it whilst Bitcoin is doing vertical zig-zags? Volatility like this gives successful traders profits but scares many more people away from the market and entices nobody new into it which can only mean one thing. I think you will find that after every bottoming out event Bitcoin has trended for a period of time necessary to breath confidence into new investors that their capital isn't just going to vanish overnight. So far, Bitcoin has not done that post Dec 2013. Bitcoin needs to find a bottom, and grind for a period of time. The waves needs to be calm to encourage new capital in.
Edit: In the period of time it took me to write this, it looks as though we have just had our reversal. Record volume (since $340 bottom) taking Bitcoin from $548 to $510. How many latecomers to the 'rocket 2 da moon' have just had their fingers burned? How many bagholders who failed to cut their losses are now freaking out that Bitcoin is going back down? How many early ticket buyers of the price surge aren't or haven't already cashed out and how many of those will be willing to buy back in with just about every TA indicator now maxed out? Is there a chapter in Trading in the Zone about how vertical counter trend rises are unsustainable and invariably followed by more bearish grinding and downside?
