Seeing clearly – Now!
Speculators naturally ask themselves questions about the market. But what are the right questions to ask though? Most speculators loose consistently money based on just that factor alone. Asking “where is the low”, and this most likely without even having a plan of action, will not solve the problem of no one knowing.
In a world where business is conducted in a form of influence, we naturally influence ourselves as well. We form an opinion and substantiate it afterwards with “facts”. We convince ourselves “here is the absolute low”. But of course no one truly knows and such convictions are not useful. This is especially true, since we wait for proof. If you enter the market at a time of proof, stops are huge.
Seeing clearly – Now – and what this Now is, is only possible without an opinion. It requires to not insist to know, but merely evaluate if a trade entry has a likelihood of a positive outcome.
The Bitcoin market had 4 legs to the downside from mid December 2017 to mid of December 2018:
From that point on prices moved in a sideways fashion.
A possible bottom formation was built and provided for low risk entry points:
Do we claim this to be the absolute bottom? No! But we actively exposed capital to risk, to participate in a low risk fashion and caught a market leg from price levels 3,400 to 4,200 USD. A percentage range of around 23.5 percent.
The goal is not to be right, the goal is to make consistent returns on low risk.
While at this point the average market participant finds possible confirmation in his question about “the low” and contemplates a long entry, the astute trader is taking profits.
In principle, prices can go sideways, down or up, and no one knows with certainty where they will be heading. We have no influence on that. But we can improve ourselves, by considering to ask higher quality questions.
All charts timely posted in our telegram channel.