Premium & Expert Swing Trades
The past few weeks have brought memories of 2017 back into the minds of many. The moves have been extreme and have been rather volatile in the shorter term which is also considered a whipsaw market.
The challenge of whipsaw markets is your stop loss. Your stop is there to prevent an extreme loss and to preserve capital. If you are looking for a 500-600 pt profit, your stop loss can not be 1000 pts lower. The Reward to Risk is less than 1.0 and over time you will lose money. You also can not just move your target up because you need the R:R to be greater than 1.0.
As Bitcoin is fluctuating with 500-800 pt moves, it increases the probability that you will get knocked out of a trade, and then it breaks higher. This requires swing trades in these types of markets to be constantly monitored and why position trading is much easier.
Position trading is not as exciting as swing trading. It takes a lot of patience, and more often then not, you are sitting and sitting, and adding a little here, selling a little there, and waiting for that big move. You are simply buying wholesale and selling retail.