Price at $6k meets my trading rules. Once I'm in any trade, I can't control the outcome. In this case, if I go long at $6k, it's possibly I will get stopped out and price goes down to $4k/$5k. Trading is a probability game...I'm just looking for low risk, high reward opportunities. Does this make sense?
You said 4k/5k is "very" possible, how is entering at 6k a low risk trade then when you think it very well could go much lower? Trying to catch a falling knife is never low risk.
We are retail investors, but have to thinking like the Big Boys. The Big Boys buy low and sell high. The retail investors sell low (falling knife) and buy high (FOMO). I agree with you on the falling knife, so I usually look for conviction. I read price action to ensure price wants to move higher. So for example, this is the pattern I'm looking for to go long within a buy zone:
where I'm looking for lower highs to form, than I'm buying a pull back where there are buy orders within a lower time frame...15 or 5 min chart. I call these confirmation entries. Most importantly, I use stops, so if price hits my stops, I just move on to the next set-up.
why would you buy at 6k if 4k or 5k is very possible? lol makes no sense
Price at $6k meets my trading rules. Once I'm in any trade, I can't control the outcome. In this case, if I go long at $6k, it's possibly I will get stopped out and price goes down to $4k/$5k. Trading is a probability game...I'm just looking for low risk, high reward opportunities. Does this make sense?
You said 4k/5k is "very" possible, how is entering at 6k a low risk trade then when you think it very well could go much lower? Trying to catch a falling knife is never low risk.
We are retail investors, but have to thinking like the Big Boys. The Big Boys buy low and sell high. The retail investors sell low (falling knife) and buy high (FOMO). I agree with you on the falling knife, so I usually look for conviction. I read price action to ensure price wants to move higher. So for example, this is the pattern I'm looking for to go long within a buy zone:
where I'm looking for lower highs to form, than I'm buying a pull back where there are buy orders within a lower time frame...15 or 5 min chart. I call these confirmation entries. Most importantly, I use stops, so if price hits my stops, I just move on to the next set-up.
Does this make sense?