RE: Crypto trade of the day: 08/08/2017 - XWC/BTC - QUICK 15% PROFIT TRADE!
Good questions jetwork.
The reason why I drew my base at 220 here on this trade was that multiple times you can see very quick bounces that range from 7-15% swings at 12:00 to 18:00 with decent enough volume that supports it. What's important is that this can only be seen off of a 5 minute chart and MUST BE WORKED OFF ONE if using this base. Working off of a 5 minute chart, you have to act quick and risk is much higher than 1 hour charts so Luc doesn't recommend new traders to start trading using 5 min charts (so in essence you're right about using a base of 180, not 220).
Another thing that's important is that I traded off of a SHARP PANIC and you can expect a bounce almost everytime with good percentages. This was a very quick panic that lasted maybe a minute so I had to make sure my sell order was in place right away in case the bounce happened to be just as quick. This is another risk of working off of a 5 minute chart
Also if this trade happened to fail I was ready to buy more below 180 probably around 150 -160 and sell both of my position at 180, the base that you mentioned, since I will now be in at an average of 169-174. Hope this helps.
Sound logic, glad it worked out for you. I'm still learning position trading and soon will move to trading the lower volume charts, but am intrigued with seeing these trades from the sharp panics. I'll get there too but want to build confidence and my account position trading first. Loving your trade of the day though keep it up! Once I get more active (very soon) I'll share mine too. Nice to see how Lucs community is forming up.
appreciate the kind words. your plan is wise, complete some position trades so you get a feel for the market and if anything it's the safest way to understand some of the nuances that comes with crypto trading. good luck on your ventures