About three weeks ago, I received feedback and frustration laden criticisms from some who suffered losses on BCH following my analysis. Yes, the slow, lethargic and grinding nature of corrections can wear anyone's patience and frustration level. I have often called this the "hurry up and wait" syndrome of cryptos. However, I want to use this blog post on why LADDERING WORKS! Once you have confidence in the laddered method of entry and exit, your emotions don't get the better of you. Also, if a ladder was not built very well, then it will not work well to remove the pain of buyer's or seller's remorse.
For new followers, what is laddering? It's a method of scaling in your entries and exits. I typically have 5 to 10 price levels to buy and these levels are selected using local resistance/support regions. Rather than buying all coins in a single transaction and most assuredly witness the price go lower and lower than your buy point, it's better to scale in. I've posted many examples of how exactly to build these ladders so you can search on google to review.
I want to share that my rungs for BCH were at these levels:
Negative Profit Rungs: $446, $410,
Profitble Rungs: $389, $381, $349, $316
Never Triggered: $278, $266, $213
On one response to a critic who had lost money on BCH by having caved to emotion and sold too early, I had discussed the "zipper" effect. This is when as price continues to grind lower and lower, the more rungs get triggered and filled. This also means the upper filled rungs turn to a loss. However, once price turns, the lowest rungs all turn profitable and zippers up the gap. That's exactly what's happened because as the below chart shows, today's high of $399 has not only zippered up the gap but made my trade overall profitable.
I did not panic, or stress out or become frustrated and cave into my fears. I've used this laddering technique for a long time and am confident in its ability to remove emotion.I've also posted multiple real time examples of entry and profitable sell ladders being filled. This trade on BCH is another example of why one should always ladder in their entries and exits. But, one must first learn to build good ladders. I learned through many, many episodes of failures!
I hope this is helpful!
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Legal Mumbo Jumbo: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.**
Thanks for all the good posts :) Quick question, how do you keep track of all your trades?
I pre enter my buys as limit orders.
Blockfolio is a very handy app that can help
I'll look into it.
Yep I use blockfolio too. A little buggy but I really like it. Not only can you enter you holdings and track but you can set price alerts for above and below a certain price on each coin. Very handy.
trying to exercise the patience it takes to implement this is my speed bump at the moment appreciate this post
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To receive an upvote send 0.25 SBD to @minnowpond with your posts url as the memo To receive an reSteem send 0.75 SBD to @minnowpond with your posts url as the memo To receive an upvote and a reSteem send 1.00SBD to @minnowpond with your posts url as the memoIts all your fault @haejin, lol joke. Yes excellent points and technique. Learning more everyday and hopefully can get your recommeded books in the near future. Ty.
Welcome back. And welcome back to me. Again thank you for your effort less help. Question: When BCH hits its target of 480 then will correct before going back up hopefully. What would it correct downward too. Words of wisdom are appreciative.
Hi rjh, yes, that correciton would be white wave ii.
Have you considered purchasing the Elliott wave Principles book? I strongly reocmmend it.
Yes...but you are better than the book !
Hahahahahhaahha 😂
Up around 10% today. Looking good.
everytime i check steemit, i follow up on haejin. laddering is great, but if you're not invested long term on the project, one good strategy would be to buy when the reistance breaks.
Yes, that is good tactic. I use it during horizontal channeling.
@haejin what an awesome analysis you did for BCH. thank you, can you update BCH because I think the third subwave of wave 1 (to 475approx) is in, but cant tell if this is actually subwave 5 already and wave 1 complete. I think BCH is going to become a very very important crypto in these weeks leading up to seg2x and I would love if you did regular updates for BCH alongside BTC because I believe a flippening as ppl are saying is becoming more and more likely where ppl switch from BTC to BCH. Thanks again Haejin for all your effort in these updates
I've updated BCH, I'm now laddering back in as this post shows:
https://steemit.com/bitcoin/@haejin/bitcoin-cash-bch-a-b-c-correction-is-done-i-m-laddering-back-in-to-catch-wave-3-up
If a correction is coming, should I sell and buy back at 400 or so.Haejin posted477-480
Thank you!
lol $500. whats next sir?
A correction to prior wave 4 and that;s now complete so I'm laddering back in:
https://steemit.com/bitcoin/@haejin/bitcoin-cash-bch-a-b-c-correction-is-done-i-m-laddering-back-in-to-catch-wave-3-up