BTC Trade - Lets play catch the falling Knife! Short Trade
It's everyone's favorite game, catch the falling knife! While this isn't the ideal way to trade, we all know by now how much BTC loves to bounce off strong support. 9,100-9,200 is pretty weak support, so I expect this to break. The next support line is between 8,100 to 8,300. Personally I set my buy order a little above at 8,460 to make sure I purchase BEFORE everyone else does. Also selling should be fairly fatigued again and no where near strong enough to break through support today. I expect a bounce back to at least 8,900 from there for a short sell.
I am committing only 25% of my capital to this trade. I will save the remaining to purchase a breakout if BTC should go sub 8,000.
Remember catching falling knives is a fairly risky endeavor, but buying near support is the best way to do it, if you're going to do it at all.
I am committing only 25% of my capital to this trade. I will save the remaining to purchase a breakout if BTC should go sub 8,000.
Remember catching falling knives is a fairly risky endeavor, but buying near support is the best way to do it, if you're going to do it at all.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.