I’m trying out a new idea for this week’s article called “The Play”. It’ll be a 1-2 sentence summary of what’s said below without all the details for you guys that just don’t have all the time to really dig in deep.
Investopedia defines trading philosophy as “a set of beliefs and principles that guide an investor's decision-making process”. While this is a start of the definition, I believe that a trading philosophy is more than just that. While the provided definition is correct, your trading philosophy is also the mindset held during trades, and a way to reconcile with past decisions. A proper trading philosophy is essential for you to make intelligent and emotionless decisions and to be successful in your endeavors, whether a day trader, short term trader, long term trader, or an investor. Without a trading philosophy, bad decisions are inevitable, emotions will surely cloud judgement, and stress will frequent your life. With that being said, let's get into how you can put your mind in the right place.
Before we jump into todays publication, let’s recap on the top picks in the previous installment of Altcoins Edge. XVG - Price jumped 10% + out of our accumulation zone shortly after publications were released. Price action is now resting just above accumulation zone, targets are still the same. DRGN - Price also jumped 10% + presenting a similar scenario to XVG. I would wait to see if we drop back into accumulation zones to scale in.
Before we jump into today’s publication, let’s recap on the top picks in the previous installment of Altcoins Edge. NPXS - Price action is still in our buy zone, volume has dropped over the last few hours of writing this. Stop losses are still the same. Nothing to worry about yet. ZIL - Price action is consolidating nicely within our accumulation zone. 4H MACD just crossed, momentum should start to build up. Targets are still the same.
Before we jump into today’s publication, let’s recap on the top picks in the previous installment of Altcoins Edge. DENT - Price dropped into our accumulation zone as predicted. Support seems to have held and volume is rising. Target levels are still the same. LSK - has just in the last hour of writing this broken upwards out of the accumulation zone with an increase in volume. Price action looks optimistic, targets are still the same.
The two most commonly asked questions I get from new traders are, “when do I buy?” and “when do I sell?” These questions are synonymous to asking what entry (or “entrance”) and exit levels are. Entrance levels are the price that you enter (buy into) a cryptocurrency (or other commodity). Exit levels are the price that you exit (sell out of) an investment. The only exception to these definitions is during a short. If you “enter” a short it means you are selling, and when you “exit” a short it means you are buying. In essence, entering and exiting mean the same as buying and selling. “When do I buy?” and “when do I sell?” are the two most important questions in trading because it determines the percentage gain that you can potentially earn: the lower the entry and higher the exit, the higher the percentage gain!
This week has been a slight relief for altcoins after the previous week’s mostly red market. Bitcoin dominance has finally started to decline again which is opening up altcoins to some volatility as money flows back into the altcoin market. In other news, Ethereum has turned around and has been making strong gains for the past few days taking the pressure off of the ICO’s and boosting sentiment around ERC20 tokens. All eyes will be on Bitcoin this week as it has the potential to possibly have found a bottom to this many months long decline. Be sure to keep an eye on Bitcoin this week as it has the power to decide the direction of the overall market.