South Korea ICO Ban and Shorting your crypto coins
South Korea ban or not, prices have been going down for almost 5 hours (with a bit of a recovery in the middle).
Rule of thumb is get out of your position, preferably to the USD or Tether and immediately calculate the minimum price to hop back in. That price on which you would not loose money due to the fees to close the position and open a new position.
I calculated that number for all the coins I hopped out. I am already over that mark (lower price point at the moment) waiting for the coins to stabilize so I can get back in my long positions.
Apart from the holders, which is not the purpose of this groups. On the day and swing trade approach, what are your thoughts? Any different than the above?
There are a number of situations for instance, you may hopped off the wagon on the first hour, or only noticed what was happening on the last hour (now). I understand each scenario has a different approach. What is yours?
Scenarios I see - for day and swing traders only:
1) If you are spotting the downtrend at its start, on the first hour, with all indicators suggesting there will be a strong pull back, great, sell your coins back to Tether (USDT) or USD. Immediately calculate the new lower price to get back in, watch the coin movement, hop back in when trend direction change is confirmed.
In case the trend goes up before the price goes low enough to cover your 2 operation fees (closing and opening again) well then that was not a real downtrend.
2) If you spotted the downtrend before the 61% or 78% fibonacci retracement price points, I would also sell if the indicators suggest strength intense enough for the price to go even lower. That could be high volume sells, RSI before the 30 point mark, MACD not far from the 0 with enough room to develop further down. Then calculate the lower entry points, covering your 2 fees (close / re-open) and buy below that, after direction confirmation.
3) The worst case: if the evolution of the downtrend is beyond the 61% or even beyond 78% you are in a bit of trouble because shorting is riskier now. If at least 4 indicators show room for further down price evolution, shorting is not a terrible idea. If not, we may be close to the trend direction reversal and the worst will happen is you losing time waiting for the prices to shoot back up.
I know text only is not the easiest way to show these scenarios, a graphic would help, but as I write this article, I am also taking care of my coins! Read carefully, think about these ideas and please do share your opinions on the comments down below.
Peace,
googleplex
/* This is not financial advice. Invest and trade at your own risk. NOBODY is right all the time. They only have to be right a few times and have a great strategy and risk management to make money. Be careful, invest at your own risk. */
Crypto Day Traders Club
is a Facebook group I created for likeminded individuals who are serious about day and swing trades. Not a place for people looking for easy ways to make money. There people work hard to make their buck, good bucks. We share trading insights, techniques, opportunities. Fundamental and Technical analysis ideas and facts. Always backed up by accordingly explanation, no posts or comments that don't add value to the subjects discussed.
