Stop Loss Management

Summary

It is crucial to manage your risk as a trader, I think I have beat that drum enough times for you to know by now. When it comes to managing a trade after you’re in, well that’s another ball game. I cover my recent actions from a trade from the week.

 

Transcript

– G’day guys, hope you had a good week. It’s been an interesting week in the markets, definitely been strong for Bitcoin of course. But I want to not just talk about Bitcoin today, I want to talk you through some things about stops. Now I will talk to Bitcoin now obviously, because well you know it’s above 6,000. And it’s growing away quite nicely, I mean check this out. The lack of, oop there we go, the lack of an exterior selling around 6,000 has really been interesting. I kind of expected a little bit more robust selling, even a lower time frame. So I think I’m going to go to the one hour, look very little. Very little indeed. As a matter of fact, little move I’ll be pulled back in the two hour beautiful little bounce off that point there of 6,000 before moving higher. It’s actually looking really quite strong in my eyes, and I’m basically just waiting for a pull back to be honest. Something nice and tidy is really what I’m after. So, ooo a little break-out there, look at that. Get a third tester around there, I’d be happy to look at that as a possibility. But aside from that, Bitcoin moving well. Excellent. Alt obviously falling very hard. Excellent for trading with margin. If you’re going to short against Bitcoin, which is a good idea. But I want to take you in, and show you the trade that I took this week. It was in on Market View. It was with the live trading floor VIP, all that sort of stuff. Be very patient, last week, again XRP/USD and eight USD/XRP stopped out eight, good move. A little bit of profit based on the eight move stop out on XRP. A profitable week, albeit a slow week. Better to profit in a slow period, than to lose money and over trade. The other thing is, well this week in particular, I took one trade, it was this one. Little cradle trade on horizon, if I just pull it back to where it was, look at that.

Beautiful clean pull back into that cradle zone, and of course it moved very well. Now I didn’t get anywhere near these high, so my exit, I’ll show you where the resistance was. Oops wrong one. Ah no, yeah that was the resistance. Yeah, so if I show it you in the data it’s much easier, see? Test one, test two. And it was on this candle that I exited quite a chunk of my position. I think it was about 50 percent or so, maybe a little bit more? Something around that sort of figure. Actually I think it was bang on 50 percent. Then of course, we saw it move higher pullback and move higher gain. Now I left my stop here, I probably could’ve moved it to there had I wished to, but I actually have left it at this point here. There’s a nice clean high and low, a good price structure, where as this one’s a bit of a whip-y, sort of movement. Not quite as attractive. As I say, you could’ve gone either way. I just didn’t do this one, I stuck with this one. Now quite interesting, look how close it got. The low of that candle is 1637, the low of this candle is 1643. So important to try your stops to places on the chart that make sense to that chart that you’re trading. And of course, for me I took this on the four hour, so I was following a four hour chart. Now it might not go any higher.

I might have stopped that here, and I might’ve made more profit by putting my stop here. I won’t know until it’s over. But for me, I feel very happy by standing by them, and this is the sort of thing you’ve got to be looking at when you’re trading. It’s not just about getting into the trade and letting the thing run, it’s about how you manage that trade. Very, very important part of your trading. So I wanted to give you a little of a video on stop blocks, take you through that little bit of detail and explain as to why. Now for the rest the week, well sorry, for the rest of the weekend, quick little run of the top ten with you right now. Let’s just start on the daily here. Knowledge is in the theorem not enough trend. EOS is pretty messy chart. Stella pretty messy chart. Ripple or XRP messy as well. Litecoin has been pretty crazy against Bitcoin, it’s held over that 74 dollar mark. I’m not interested in really trading it until we get above this level, a higher low and a higher high. Bitcoin cash is just sitting holding, not doing a great deal as well. BNB has held it’s ground after a pretty good fall. And Tran, sideways. Cardano also looking pretty average. So really it’s the Bitcoin price, and the Bitcoin chart that is holding all the cards at the moment. And I’m really enjoying the way that this is moving. There’s no ridiculous huge candles, it’s just steady buying momentum. Wouldn’t be surprised to see it push on. Have a great day and a good weekend. Bye for now.

By Trader Cobb -

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