Solution to All These Issues = Creating a Plan + Sticking to it
Let's go back to that Bitcoin price analysis again.
Beyond the technical analysis, forecasting etc., the most important facet of that report is the trade strategy.
It explicitly declared:
1. What price we were entering at.
2. What position we were taking (long or short)
3. Stop/loss point.
4. "Target"
^^ These features are all binding. That's why I factor in the risk v. reward ratio in my decision on whether to even enter a position in the first place (potential upside) and, if I do decide entering may be worth it, what my "target" and stop out points will be.
That's because when those decisions are made, I'm pretty much completely committed.
That means when I published that Bitcoin price analysis, I was resigned to the fate that:
A) That trade would either reap 27%+ ROI
or
B) It would net me a 5-6% loss
One or the other. There are some minor exceptions for instances like the one we're in currently where the price is so close to our target that deciding to 'cash out' is really up to discretion (R/R of eeking out an additional 2-3% on the position vs. risking the same in losses lopsides the ratio in a way where an exit becomes an increasingly wise decision).
This plan is what allowed me to remain steadfast in the trade from Jan 30th-Feb 11th when the price backslid by 10% because (a) Trade strategies shift your focus to final outcome vs. interim results & that's critical because only the former matters and (b) we were still in profit anyway and this is due to entering our position at the right time + plotting a S/L point that was meant to guarantee we'd never be in a position where we're sustaining net losses >5.5% of our principal.
With that in mind & the acceptance of my fate in mind, all I had to do was just sit and wait for one of the two scenarios to play out (target hit vs. trade bust). Since I'm confident in my price forecast & technical analysis skills, my trading strategy serves an example of me "putting my money where my mouth is".
Let's go back to that Bitcoin price analysis again.
Beyond the technical analysis, forecasting etc., the most important facet of that report is the trade strategy.
It explicitly declared:
1. What price we were entering at.
2. What position we were taking (long or short)
3. Stop/loss point.
4. "Target"
^^ These features are all binding. That's why I factor in the risk v. reward ratio in my decision on whether to even enter a position in the first place (potential upside) and, if I do decide entering may be worth it, what my "target" and stop out points will be.
That's because when those decisions are made, I'm pretty much completely committed.
That means when I published that Bitcoin price analysis, I was resigned to the fate that:
A) That trade would either reap 27%+ ROI
or
B) It would net me a 5-6% loss
One or the other. There are some minor exceptions for instances like the one we're in currently where the price is so close to our target that deciding to 'cash out' is really up to discretion (R/R of eeking out an additional 2-3% on the position vs. risking the same in losses lopsides the ratio in a way where an exit becomes an increasingly wise decision).
This plan is what allowed me to remain steadfast in the trade from Jan 30th-Feb 11th when the price backslid by 10% because (a) Trade strategies shift your focus to final outcome vs. interim results & that's critical because only the former matters and (b) we were still in profit anyway and this is due to entering our position at the right time + plotting a S/L point that was meant to guarantee we'd never be in a position where we're sustaining net losses >5.5% of our principal.
With that in mind & the acceptance of my fate in mind, all I had to do was just sit and wait for one of the two scenarios to play out (target hit vs. trade bust). Since I'm confident in my price forecast & technical analysis skills, my trading strategy serves an example of me "putting my money where my mouth is".