Just when it appeared things were settling down a bit, Iran fired more than a dozen missles at US forces in Iraq according to the Pentagon. We often mention that when everything is going too good, it only will take something out of the blue to knock the wind out of the market. Is this the event?
Bitcoin is gaining momentum and is close to hitting our second target which it is likely to do. We had a losing streak with Bitcoin trades, but that did not change our strategy or frustrate us into giving up.
You trade long enough you will go through trading slumps which is where many lose their capital. This is why we emphasize position size and though we took 5 losing trades in a row going into the end of the year, because we manage our capital, we were still up and had capital for the next trade.
Even this trade initially looked pretty grim as it gave us a lot of trouble for a couple weeks, but then the breakout. Hit our first target today and is likely to hit the second shortly.
There is a resistance level around 8600 but essentially from 8000 to 8600 is one large resistance area. If Bitcoin can take out the 8600 level it is likely to push into the low to mid 9000’s.
Bitcoin looked pretty crappy only a few weeks ago, and it was a hard buy, but if you added at these lower prices you are being rewarded for stepping in when everyone was a hater. Even if you bought in the low 8000 area you are now sitting in a decent position.
Buy when markets are out of favor and though it may take months or years before you see the fruits of your patience, when they finally start moving you are already positioned. You are not chasing the rally, you are looking at areas to trim or riding the wave in.
Nothing speaks more about patience than Gold