Learn to enjoy the battlesteemCreated with Sketch.

in #trading7 years ago

You have to pick your battles as a trader.

If you have been following my blog videos, you know that where I buy in on any chart is only where my odds of success are very very high. It takes patience to wait for these opportunities to present themselves. But if you wait and buy in those safe circle areas, you will almost always get an easy profit. However once and a while there will be a surprise, where the coin you bought falls further than you expected and you are able to layer in with a few more lower priced buys. This is where things get exciting. As a trader I live for the battle.

Lets discuss those trades that require a battle.

I'm very conservative trader. So if a panic actually allows me to buy more than once (barely ever happens) than since I was surprised and the panic allowed me to get a little more, I usually take some profit quick on most of my position whenever I get any bounce. It seems there are alot of traders who were confused by my last video saying: "participate in every bounce". Some thought that I was saying to exit your entire position early. Like you can somehow predict from price action that your alt trade will not return to its previous base??? I said and explained that "participate" means begin to sell some at break even or for small profits. You were surprised and the coin fell farther than you expected, so sell some at a quick profit and if it bounces further, sell more and so on. But at least participate, in trading you get paid for participating, that's how it works. Then if it suddenly dives again, you are now in a better position to average down further. That's is what I call working a position, all the while you are working under a base, so you are working in an area of high odds. (This is not to be confused with adding to a loser, which is the worst trading strategy that anyone can use.) Remember that you are working in a safe circle, clearly under a base, that's where you want to be working, that is the only place you want to be buying.

Are you a trader or an investor?

The worst thing a trader can do is sit there and not work a position, and instead allow the position to work against him, then later wonder what went wrong. Sometimes traders get lazy, because my method works out so well, that they mostly just get that one buy and then the bounce and then then they sell for profit. So they can get complacent, they are not battle hardened. I live for the battle, because I almost never get to fight it out. All my trades just profit, so if one ever surprises me and keeps diving, that's when I get excited and go into BATTLE MODE. Taking small profits, reloading on new lows, taking some quick profits again, reloading.. and so on.. and loving it.. All the while knowing that those bounces are getting to be higher and higher percentages the lower this coin works its way down. And most importantly, knowing that there was a clear base above that puts the odds of this entire battle way way skewed in my favor.

Are there guidelines that I follow for the battle? Perhaps buy every 15% drop and sell every 10% bounce?

No. There is no magic formula, every trade is different. As a trader, it is good to be thinking in percentages, but you cannot make hard fast rules. Your working a chart, and every coin will drop a different amount. So you have to read the chart to know what to expect, and then play it safe. If you get a fast bounce you sell fast and a bigger sell, maybe up to 80% of your position. But if you get a slow grind up then you sell in small chunks slowly. It all depends on how the crowd reacts and how aggressive the buyers are. You will find that in a panic there will often be a sudden spike in the price and then a continuation of the drop. If you are quick to sell when you get one of these quick bounces, then you will be able to instantly reload (making an instant profit). Now you are truly understanding the battle. A sudden spike is only a few big buyers and that is a gift, so take it. But a bounce that is a slow grind up requires many buyers and is often sustainable, and so you want to sell a little at a time because there is real buyers coming in.

My hope for each member of the Quickfingersluc community is that you start to enjoy the battles, as I do. I make so much more when I get surprised and something drops further than I expected. I live for the battle, its the best part of trading. Easy (small) profits are great, but I want to get a chart with some real panic and argument. And always remember, you started this particular trade because the chart has shown a history of always respecting its bases. This means that your odds of success are extremely high. So after you have worked the trade and made some profits, and are out of the trade, then you can consider not trading that particular coin again for a while until it resumes respecting its bases.

Participate in every bounce

I hope this post helps clear up some questions about the rule: "participating in every bounce". Subjects like these are often discussed in the Quickfingersluc slack. Our Slack has gotten huge, almost 2,800 traders, wow, unreal. Thanks everyone for being part of this, the slack really comes alive whenever those major coins start breaking bases. So when you start to see panic in the market, make sure you go, sign in to slack and join us, get the latest news, share your trades and see what trades other members are taking.

Luc

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Excellent explanation. A good example of this strategy I used just last week when ETH-BTC was going nutty. I bought on the dip, but it kept on dipping, so I layered in some lower buys. Then when it came back up I sold those lower buys for a little profit. Then as the chart climbed back up I sold my higher buy ins for profit. Just need to ride the wave and enjoy the ride, and battle. Thanks for the advice Luc.

Love the article Luc, have to say this is probably the hardest thing I find to implement. I have just 1 thing I'd like to clear up with you if thats okay .

You say :
Taking small profits, reloading on new lows, taking some quick profits again, reloading.. and so on.. and loving it.. All the while knowing that those bounces are getting to be higher and higher percentages the lower this coin works its way down.

https://www.coinigy.com/s/i/59f25779dff23/

In this graph I know that my first 2 buys were way too early and my 3rd buy I should have participated in the bounce like you explain here but my question is about 4th buy here. Should I be going in for bigger size with this since it is now 15% under original base? Should my buys 1 -4 be getting progressively bigger or should I only layer like this when there is a pure panic? Sorry if that is long winded, know you're super busy with everything so no worries or pressure to respond. Thanks man.

As the price goes lower, you will be able to get even more coins for the same amount of money. So I will always at the very least keep buying more with the same amount of capital.. But I always go bigger as I layer.. so if you bought 40s and paticipated in the bounce, maybe selling some 42s .. then I would likely buy 38s with the same amount you bought 40s earlier.. but if it continues lower without a bounce, then I get in bigger, and bigger layering.. Im not sure if that makes sense to you.. So my first buys are usually the same, but im always hoping that it will continue lower without a bounce.. I want a real panic.. so if I get the opportunity to get a second buy or a third, they get bigger and bigger.. but usually I only get the one buy and then a bounce, and I profit but am a little disappointed.

Thanks alot for the reply! Yes I think that makes sense. Will keep reading over it to remind myself thanks.

https://www.coinigy.com/s/i/59f459759e0b4/

In this example. I bought 100 DNT at 940. Now if this continues to drop, I have another buy order of 100 DNT at 775 & plan to participate in the bounce & get out. Since there isn't a pure panic, I buy the same amount of DNT as I did previously. Is that correct? Thanks a bunch Luc!

As I get it, this looks like martingaling... Isn't that dangerous in the long run?

Hey luc for small account building trades on the smaller volume coins, do you apply your same method? (Buy cracked base method)

Good q similar to mine. Also want to know if we should we continue with the original base and consider all under there a safe zone to buy(good distance under the crack) or after a bounce should we start again with the new base formed.

Hi, just started my Steemit account because of your articles on daytrading. Alot of insight and hands on instructions without alterior motives. Im loving the community here and how its built to promote good and positive storys and information to evolve.

Just wrote my first article on an mlm scam site and how it functions behind the scene. (Or at least my perception on how it opperates).

Will keep following you and learn from you.

Thanks Luc. I'm learning, getting better.

Thanks so much for your videos. I only started this kind of trading a few days ago, but thanks to you my portfolio is up from its starting value ~17.5%
That may not be as much as other people, but I only just started and I lost 20% on my second day before I had watched a bunch of your videos. I joined steemit specifically because of you. You are a man above men. Thanks for the help!

Thank you Luc for taking the time to write the blog so fast : )

Thanks for explaining this Luc - I was one of those traders who was slightly confused after your video yesterday - but watching it again (after reading the above) and I get it now!
I'll definitely be more prepared next time a chart stops respecting it's bases - nice one :)

Hi Luc. Just want to clear something up, when you in battle and you reloading after every quick bounce, you said its safe cos its under a base. are you referring to the original base that you started with or the bases formed by the quick bounces? in other words when the battle starts do you disregard the original base and just focus on the new ones forming? excuse the noob q.

im totally new to all this but keen to learn how you trade.what videos do i watch first and where do i find them?
thanks heaps i look forward to following you all in crypto world

Watch ALL of Luc's videos ... at least 2-3 times ... it will be time VERY WELL SPENT!!

Also ... make notes while you do and then you can then go back to them to refresh your mind when you need to remember what was said in each one

Go to his youtube page.

I setup a YouTube playlist to play them form beginning to end: https://www.youtube.com/playlist?list=PLN3ub1PkCOgsMkaE8W3qa25dc51SQw_qF

Thanks for doing that

Learning something new all the time from you
Thanks Luc