BTC Sell Off Here is What Happened and what you can learnHello and Thanks for stopping by, this is my first tutorial post so go easy on me haaaaa
Ok well all is self explanatory really as you can read by the chart .
Lessons that can be learned from this can be repeated over and over again but the truth is we will always see the same scenario playing out over and over again because that is what feeds those who are succesfull at trading .
Simply put what you see on the chart is a example of greed and stupidity, Ok we have seen it all 1000s of times before but someone out there does not want to make the same mistakes again and this post is designed to help you better prepare yourself for this eventuality and give you some positive guidelines to improve as a trader .
1, Do not Long Tops and dont short bottoms . FOMO might work some of the time but most of the time you will regret it
2, Plan the Trade and trade the plan or you will only plan to Fail
3, Patience always pays * wait for the Retrace or the breakout depending on the trade you want to take with a solid plan in mind
4, Always use a SL and know when and where you are wrong. Risk management is so important learning to protect your capital keeps you in Business
5, There is a time and a place for Leverage learn this without going BUST
6, Understand the importance of Position size and use a Position size Calculator if that makes it easier
7, Learn the power of Footprint Charts and how to use that candle Data to your advantage. Seeing Millions at the top or bottom really is a great advantage
8, Take profits on the way up or down at strategic points , Locking in profits guarantees you get paid and you wont get caught out being Greedy
9, The market has no emotions only traders do ! If you are emotional you are probably taking too much risk of your capital...
10, Accept that being wrong in Trading is Normal, provided you calculate every trade you will only lose the minimum and live to trade another day
11, Most of the time There will always be that grab Liquidity move, up or down, remember that ! Rather than placing a SL where its crowded. Don t think Like the Herd
12, Learn why Open Interest is important and how funding impacts you ! This is probably overlooked by many whom trade BTC Perpetuals
I will leave you with this Quote " The Market does not know you exist. You can do nothing to influence it. You can only control your behaviour"
Thankyou for reading my post and I hope it helps somebody .
