When to take Profits - Stellar Lumens case sample
This is a 12 hr chart:
I been making the same mistakes again and again for when to take at least some profits. When buy very low it's good can HODL but why not take 20% off the top and buy back more again instead of holding the whole position again? Sometimes it for capital gains taxation purpose and cryptocurrency is a different game. If buy back into cryptocurrency and the whole market melts even more well you can be taxed on something you don't have anymore :) Cryptocurrency is a different beast!
The mistakes making is NOT looking at BOTH price AND volumes. Using other indicators like Stoch and OBV should be very very secondary and used with patience. However price and volumes since both being analyzed at the same time can be done in real time and should be your first to indicators
When see Price peaks increasing and volumes decreasing, if the last volume of that swing high was not strong, watch out take profits before the prices get manipulated and wonder what the hell just had happen. So many posts was staying Stellar Lumens now going to $0.80 US and over $1.00 US few days ago from the $0.50 to $0.60 US mark and blindly looked at it with confidence. Don't listen to most traders who don't do volume and price analysis, all other indicators are lagging and to be used with a lot of patience. With patience look at the 3 day and 12 hr chart comparison to buy back in again
When time to sell some of the profits, you need to look for more than 30 to 40% discount to have another good trade otherwise you risk the profits you take and playing the waiting game
I been making the same mistakes again and again for when to take at least some profits. When buy very low it's good can HODL but why not take 20% off the top and buy back more again instead of holding the whole position again? Sometimes it for capital gains taxation purpose and cryptocurrency is a different game. If buy back into cryptocurrency and the whole market melts even more well you can be taxed on something you don't have anymore :) Cryptocurrency is a different beast!
The mistakes making is NOT looking at BOTH price AND volumes. Using other indicators like Stoch and OBV should be very very secondary and used with patience. However price and volumes since both being analyzed at the same time can be done in real time and should be your first to indicators
When see Price peaks increasing and volumes decreasing, if the last volume of that swing high was not strong, watch out take profits before the prices get manipulated and wonder what the hell just had happen. So many posts was staying Stellar Lumens now going to $0.80 US and over $1.00 US few days ago from the $0.50 to $0.60 US mark and blindly looked at it with confidence. Don't listen to most traders who don't do volume and price analysis, all other indicators are lagging and to be used with a lot of patience. With patience look at the 3 day and 12 hr chart comparison to buy back in again
When time to sell some of the profits, you need to look for more than 30 to 40% discount to have another good trade otherwise you risk the profits you take and playing the waiting game
Summary: Bitcoin market much more highly volatile compared to other markets so we need to look for at least 30% + discount to buy the next dips. That way profits are maintain and emotions are removed from making the next trades