AVAX | BREAKING DOWN MY LIQUIDATION CALL | SHARPENING THE BLADE
AVAX | Avalanche - A promising smart contract platform in the blockchain industry
My past week in the futures market & leveraged trading has been extremely well, and by saying that I don't mean it was all sunshine, but rather the learning process and how obvious the solutions are in order to succeed.
That said, I'd like to review a sour trade I've made yesterday out of excitement & recklessness.
Now as we all know, hindsight is 20/20. Let's have a look at my short-term trade with AVAX.
By the end of February, many coins were poised for a breakout, and possibly a trend reversal. Unfortunately, that was rejected after a short-lived bull run during the first week of March.
Even though I'm bullish on the crypto space, I still wanted to take advantage of this trend that was pretty clear. Having the capability of shorting some familiar coins, AVAX was my short of choice.
The first few trades were excellent. I secured my positions close to the top and slowly strengthened my position as my analysis came closer to confirmation. Once the down trend had started, I was already in a good spot.
After securing my profit is where the mistake happened.
Instead of allowing the impulse to fully take form after the drop, roughly around the 261.80% Fib level, I had gone back in too early which would cost me my capital.
Ideally, a more sound approach is to let patience rule for this period. Though excitement & the happy hormones of making the right call can cloud our judgement, it would probably be best to do a thorough check on all your indicators & redraw your chart.
Leverage can either go with you or against you, and that doesn't just go for money. Time, emotions, these are all leveraged as well, we have to understand that .
The right call; extreme joy, less time to grow your capital, and more returns of course.
With a bad call though - extreme anxiety, frustration, more time will be required to rebuild, and less returns of course.
A few key points to remember
- Learn how to use the Fib Retracement tool & Trend-based Fib
- For beginners, unless you have an entry/exit route or map planned out, it's best to re-chart & re-analyze your play before going back in to avoid controllable losses.
- Even though you have confirmed the general trend, you will still need to determine the best ranges in order to succeed in trading, most especially if leveraged. (Always seek the best price)
- The larger your leverage, the more accurate your calls must be.
- I have found the least anxiety & self-doubt and more confidence with my analysis when I strengthen my position ONLY when my initial position is green - this way, my only risk would now be my profit.
Leverage wisely.
My past week in the futures market & leveraged trading has been extremely well, and by saying that I don't mean it was all sunshine, but rather the learning process and how obvious the solutions are in order to succeed.
That said, I'd like to review a sour trade I've made yesterday out of excitement & recklessness.
Now as we all know, hindsight is 20/20. Let's have a look at my short-term trade with AVAX.
By the end of February, many coins were poised for a breakout, and possibly a trend reversal. Unfortunately, that was rejected after a short-lived bull run during the first week of March.
Even though I'm bullish on the crypto space, I still wanted to take advantage of this trend that was pretty clear. Having the capability of shorting some familiar coins, AVAX was my short of choice.
The first few trades were excellent. I secured my positions close to the top and slowly strengthened my position as my analysis came closer to confirmation. Once the down trend had started, I was already in a good spot.
After securing my profit is where the mistake happened.
Instead of allowing the impulse to fully take form after the drop, roughly around the 261.80% Fib level, I had gone back in too early which would cost me my capital.
Ideally, a more sound approach is to let patience rule for this period. Though excitement & the happy hormones of making the right call can cloud our judgement, it would probably be best to do a thorough check on all your indicators & redraw your chart.
Leverage can either go with you or against you, and that doesn't just go for money. Time, emotions, these are all leveraged as well, we have to understand that .
The right call; extreme joy, less time to grow your capital, and more returns of course.
With a bad call though - extreme anxiety, frustration, more time will be required to rebuild, and less returns of course.
A few key points to remember
- Learn how to use the Fib Retracement tool & Trend-based Fib
- For beginners, unless you have an entry/exit route or map planned out, it's best to re-chart & re-analyze your play before going back in to avoid controllable losses.
- Even though you have confirmed the general trend, you will still need to determine the best ranges in order to succeed in trading, most especially if leveraged. (Always seek the best price)
- The larger your leverage, the more accurate your calls must be.
- I have found the least anxiety & self-doubt and more confidence with my analysis when I strengthen my position ONLY when my initial position is green - this way, my only risk would now be my profit.
Leverage wisely.