That short position I opened yesterday at 83,300 got stopped out.
A little after 11 p.m., Bitcoin surged past 84,000 in one go, reaching a high of 84,800. My stop-loss at 84,500 got triggered, costing me 1,200 points.
The frustrating part came afterward. It failed to hold at 84,800 and started tumbling this morning. Now it’s back at 82,850—more than 400 points below my entry price.
I got the direction right: the overhead supply around 84,000 really did weigh on the price. But that one move overnight swept my stop-loss, then turned around.
That’s just part of trading futures.
I did think about putting my stop at 85,000—in which case this trade would be profitable now. But that’s not the right way to think about it. The stop-loss was set before I opened the trade. I put it at 84,500 because I’d decided that if the price really broke above 84,000, I should admit I was wrong. It did surge above that level, and at that moment I had no way of knowing whether it would hold. The stop was hit, and that’s that. I followed the rules for this trade.
The worst thing isn’t losing on one trade; it’s refusing to accept the loss and moving the stop-loss again and again until a small loss turns into a big one.
After getting stopped out this time, 84,800 became a new high. The price surged up there and then got knocked back down, showing that selling pressure overhead is still heavy. That’s consistent with my earlier assessment.
No need to rush into another short. I’ll wait for the price to return to the 83,500–84,000 range, see how it moves, and then look for an entry. #btc $BTC
A little after 11 p.m., Bitcoin surged past 84,000 in one go, reaching a high of 84,800. My stop-loss at 84,500 got triggered, costing me 1,200 points.
The frustrating part came afterward. It failed to hold at 84,800 and started tumbling this morning. Now it’s back at 82,850—more than 400 points below my entry price.
I got the direction right: the overhead supply around 84,000 really did weigh on the price. But that one move overnight swept my stop-loss, then turned around.
That’s just part of trading futures.
I did think about putting my stop at 85,000—in which case this trade would be profitable now. But that’s not the right way to think about it. The stop-loss was set before I opened the trade. I put it at 84,500 because I’d decided that if the price really broke above 84,000, I should admit I was wrong. It did surge above that level, and at that moment I had no way of knowing whether it would hold. The stop was hit, and that’s that. I followed the rules for this trade.
The worst thing isn’t losing on one trade; it’s refusing to accept the loss and moving the stop-loss again and again until a small loss turns into a big one.
After getting stopped out this time, 84,800 became a new high. The price surged up there and then got knocked back down, showing that selling pressure overhead is still heavy. That’s consistent with my earlier assessment.
No need to rush into another short. I’ll wait for the price to return to the 83,500–84,000 range, see how it moves, and then look for an entry. #btc $BTC