Stevie Swai
We constantly preach having a winning attitude about markets, and we’ll just let the others (who will never make consistent profits) issue their dumb predictions and hyperbolic comments. Like “Bitcoin is going to zero” or “Bitcoin is going to one million”. In contrast to “them”, we just work hard, stick to our tools, keep racking up profits on-net, and enjoy our lives away from markets. And we view emotional markets as potential trade setups, as they are often opportunities to enter or exit profitable positions. And Bitcoin has been, and will continue to be, a wonderful trading market.
“And we have to know when to “invest” and when to just downright trade. Do not ever think of investing when something has had a huge run, and everyone around you is making money in that market. Just trade.”
And as recently as Thursday Scott gave subscribers these intraday warnings:
“I’m “giving BTC plenty of room”, thus willing to take some shots in this area as it’s sold off. There has been so much speculation in the crypto stocks, so for me that means cut back, so (and/or) time-frame, position size, even trade setup-wise actually with parameters. BTC itself watching for break of those lows, and see where we’re at. So much speculation in crypto stocks.
Bonds with a nice bounce today, could be a good one with the holiday coming up. And there goes NXTD moving higher. Sold way too early, how unusual. And now it’s halted. I believe #6 halt of the day. It’s my point about cutting way back.”
And here are some recent premarket comments about BTC and a winning approach to all markets:
“All of the hyperbole surrounding this stuff, I’ll just focus on trading. Today LTEA is a classic late 90s move (crypto marketing). Recently it’s been SIEB, DPW, LFIN, INTV, SSC, yesterday NETE and NXTD. Today NVFY is continuing to try and pump itself up again via cryptos. The premarket chart is below. But this stuff is 1997-March 2000+ all over again.
A lot of volatility, “give it plenty of room”, but gosh the BTC bulls are getting confident, stubborn, and arrogant actually. The price action is “confirming” their theories.
I’m trying to work out how reliable the volume is with BTC, and those exchanges, but another support area to watch – secondary rally/spring failure areas and shorter-term spring areas. That list of crypo stocks for short-term trade opportunities today, but being aware of the time-frame and some upthrusting and some wild speculation in these names.
That time 20 years ago is when I began learning to try to stay away from hyperbole, and just stick to tools – and trade. For people who constantly worry about crashes, do they understand about using some kind of exit strategy – and stay optimistic. Risk control. There will be big, very big, huge selloffs. BTC itself going to zero? It is not remotely my view. Other individual cryptos, absolutely, same as the 1990s.
And like then, when companies (even legitimate ones) knew how to pump up their stock with .com or “net” stuff. Now it’s blockchain, crypto stuff. SIEB is the latest one.
So with BTC, all of the hyperbole, emotion, predicting. But itself is just another market, it’s had a huge run, so cut back on things. Blockchain plus cryptocurrencies (the technology) themselves, are sort of like the internet itself in the 90s. And the stocks of today’s environment related to that idea.
So with all of this in mind, we went into Friday’s session with a winning attitude (like usual) and looking forward to the trading opportunities with the “crash” in Bitcoin. Scott stepped up and bought RIOT into the emotional selloff on Friday. He’ll explain that in another post. There were preliminary support areas formed in many of the crypto stocks, like DPW or OSTK.
On Friday I was focused on MGTI. I had missed the rallies in MGTI on the 18th and 19th of December and quite frankly, as the stock price went lower and lower during the pre-market session, my excitement was building as I had plans to wait for a spring. Sure enough, it opened at 4.12 and continued to drop to 3.62 which was about at support. When that first green volume bar came in at that level, I jumped in and put in a limit order, actually several, which didn’t get filled. I finally got filled at 3.71 and sold at 4.28 for a 14% profit. It hit 4.50 and then sold off to 4.15. It was there that I was questioning my exit point. It was pretty apparent it was moving higher so once it hit 4.28 once again, which was support, I took another position and rode it up to 4.71 at which time I sold it.
nice timing and good reminders and emphasis on EP, after a sell off with first green around support.
Is this trend absorption, something that you would go with the close?
https://www.tradingview.com/x/38bwlGoe/
Let’s see into the close, but it looks more like it “wants to be” reaccum first. Look at the closes on 1/2 and 1/5, those are CLASSIC pure absorption into the close, one of the very highest probability setups for the next open and morning usually. So two things, yes watch into the close, and if it continues the general uptilt, that is a hold (probability). And if not too extended, and it moves enough, and possibly short-term focus, the gap up is a buy. The other part of this is, with no absorption, this strong and then the dumb news is a buy for a bounce. So generally for the absorption, we just want to be able to find these as early as possible in the overall move, probabilities. And good find.