We spoke about SHIB the other day and it has just kept on going. SHIB is currently over 300% in less than 4 days. Now that is impressive. When does one sell SHIB? Well, that is a really good question and the answer is different slightly depending on the type of trader that you are.
It’s important to identify the type of trader you are. Yes, we have a whole Lesson all about this topic but in short, there are usually three types of traders and those types have very different needs and very different strategies. Consider the three types as this:
Scalper – Short-Term Trades
Intra-Day – Short-Term but higher timeframes
Swing – Mid to Long-Term Trades
the last style isn’t really trading and that is INVESTING. Investing is a world of it’s own as those positions are usually held for anywhere from 6 months to multiple years.
A Scalper has already been in and out of SHIB 10 times easy while the Intra-Day Trader has likely closed their position only to reopen a position each day. Intra-Day Traders don’t like to sleep while they have open positions. Now a Swing Trader is likely still holding SHIB and you may be asking why…
Again, different strategies will have different exit points but a lot of Swing Traders are Trend Following Traders. A Trend Following Trader is a Trader who gets into a position when they recognize a trend and exit the position when the trend has been exhausted. But what constitutes a trend?
This is where Technical Analysis plays a massive role and it is certainly a recommendation to learn what you can about TA. Do we teach TA? You bet we do! Can you be a successful Trader without learning TA? The short answer is YES. But the mindset is more like “Fake it Until you Make it”. Once you learn TA you can start to identify things for yourself and build the confidence successful traders need. Without learning TA you are constantly asking other Traders for their opinions and you are generally Buying Late and Selling Late – this means your profit margins suffer greatly.
Enough with the School Teacher Talk – Let’s get into a few things today.
Bitcoin – $55,750 – Good rally and a strong case is being made for a retest of the ATH. By sweeping the high side and taking out the previous Lower High around $53K. This breaks the downtrend cycle from the ATH and creates an uptrend from the Local Price Action. Don’t worry if you don’t understand all this talk at the moment… Refer to the Charts in the pictures for an easier idea of what just happened.
With the local rally in mind – we look to the next potential area of resistance to see what kind of reaction we may have. We have some Choppy area that we have just entered and then we have the ATH to contend with above the Chop. The Chop can also be a great area for Scalpers but it also opens up the door for some Alt Coins to fly around. We call these areas CONSOLIDATION and they are very important for Traders to recognize because they can be very profitable but traded incorrectly – it will CHOP you up and take all your Capital!