Cryptocurrencies

Trusting Your Gut as a Trader is Tough

When it comes to technical analysis and trading the idea of “trusting your gut” actually goes against all the rules.

Indicators and Patterns

Generally decisions are determined by the information a price chart and the indicators are giving you.  Yes, there is interpretation in that, but usually you don’t go on a feeling.

However, maybe that “gut feeling” is something that is developed after many years of actively investing.

I get that gut feeling at times and it’s usually goes against everything that the chart is telling me.

The chart of litecoin in this post is an example.  My gut was telling me to sell on the move into the 90s because we would likely see a return to the high 60s, though the chart told me otherwise.

Price clearly broke out and 75 was a clear line to be a bottom for prices even if they pulled back from the 90s.

In the high 80s the little voice in my head was like sell, it’s gonna give most of this back.  You have seen crypto do this several times the past year.

Internal Battle

I did sell some at 86 or so, not much though (5 coins) and obviously wasn’t happy when I saw things push just shy of 100.  Short lived we got a pullback as expected, but price didn’t hold support and ltc is now down in the high 60s.

I’m not picking on ltc in particular as it has indeed performed well this year, it’s just an example of this dilemma.

Now I sit and wait for an entry signal to grab those 5 coins I sold.  Happy to have made about 20 points on those, but damn selling them all would have been a nice payday.

I suppose if we continued to rip higher I wouldn’t even be writing this….

Related posts

Crypto Contest March 7: Einsteinium

Markus Aarnio

ATOM technical analysis

luis garcia

BITCOIN – 26 May

onepercentbetter

Get involved!

Comments

No comments yet
Skip to toolbar