One of my passions is flipping Antiques. For a while I was actively buying Antiques and Collectibles at Auctions, which I would then turn around and sell in shows or on eBay -1.55% . Not a bad gig. When I lived in Arizona I used to stop by this old antique store in Wickenburg and talk to "Old Man Wickenburg". He was well into his 90s and living in the middle of no-where. He enjoyed the company and we always enjoyed his stories so we stopped by whenever we were in the area. I am ever so great-full to have know him. He taught me a lot about antiques and moreover life. One time I was in there looking around after the Phoenix show and telling him how much money I made selling this gas pump, bragging to say the least. He said casually "the rest of the show must not have been so good then". I stopped, thought for a moment and said it was ok we did "pretty" good we sold a lot. This was when he leaned over that dusty old counter and said these words I will never forget. "Son, the money is not made when you sell something, the money is made when you buy it". This was one of those moments that had everlasting impact .
So what does this have to do with cryptos? This advice applies to all markets, after all the world is just one big market of buying and selling. Buying right is the key to successful investing and trading. Whether your buying a house, business or trading/investing in the markets the money is made at the purchase.
I mentioned in my previous article that I was looking for a reversal in the 14.3 to 15.25 area which did not happen, therefore I did not get the signal of the reversal until I noticed it too late. So what do we do in these situations as it happens often where we miss the buying opportunity or signal? It is simple, we look for a better opportunity. I want to buy into weakness, or at the breakout, not after missing the signal which leads to chasing and portfolio ersion. OMG is the perfect example.
We are testing the 1st Level of resistance that we identified back on the 22nd and are showing some signs of exhaustion after three well defined impulse waves. To be clear we can still move higher as our target levels of 22.3 to 23.9 are still valid. But overall the market in general is starting to show some signs of short term weakness. I want to take advantage of this, but understand that we can always go lower so I am looking for a good reversal signal on a pullback.
I am looking at the 15.55 to 17.55 level for entry on a reversal signal. A break of 13.65 would negate my current count and we could find support at the extreme low of 12.32 or the 0.618 retrace or even as low as 10. I would love to get another shot for the long term at 10. Keep in mind sentiment is at a low right now, but as we have seen sentiment can turn on a dime.
I never worry about missing a trade and I definitely do not chase. Markets always provide us with ample buying opportunities, and as my buddy MarcPMarkets often says, "Let the market come to you". If the market does pullback and I get a reversal signal I will be ready to take advantage of the opportunity, if not, I will be patient and wait.
Money is made when you buy NOT when you sell. Having cash on deck ready to take advantage of these deals can significantly add to long term profits.