LONTERM Downtrendline Breakout with Bounce off new UPTREND Support.
ENTRY = $245.02 SL = $230.83
TP = $300
Trade active
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ANOTHER BUY signal today @ $244.29 with the SAME SL of $230.83.
I normally use 0.5% RISK and then when I have a 2nd BUY signal I add an additional 0.25% RISK. So for those that are not sure what I mean if I have a 100K account and SL is $14.19 away (245.02-230.83 = 14.19) then $500 (0.5% of 100K) is $500/$14.19 = 35.24 ETH bought in first BUY.
RISK $250 on 2nd BUY is $244.29 - $230.83 = $13.46. $250/$13.46 = 18.57 ETH on second BUY
TOTAL = 53.81 ETH with avg purchase price = $244.76 with 0.75% RISK.
Still considered a 4R potential trade so I am can still be profitable EVEN IF this trade FAILS 75% of the time. HOWEVER, this is a >50% probability trade.
@dragon, you do realize that this was a 4R trade and I could be wrong 4 times and only right 1 x and still break even. Thing is though that ETH soon after this thread it Popped and I may not have posted here but price ripped through 300 and is at $620 today. So my trade that you scoff at is handsomely in profit and I am still holding. Did you do as well??
eganon69
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@dragon, Also, if you hit the Play button up on the chart you can see my TA was spot on. I may have been slightly early in this trade but it eventually worked out even better than I planned.
eganon69
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I still think that fundamentally this will trade to $300 but we can not argue with the chart. Stopped out and looks like we will have a retrace for a bit. May find a better price to go long in the future.
dRends35
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It'll be looking good for a short if it gets to 300. Not a trade for me - too late in, but who knows maybe you'll snatch a bump.
eganon69
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@dRends35, thanks for the input. Its abundantly clear you have no idea about risk management and position sizing when you refer to a 22% gain and a 4:1 R as a "bump". But hey you keep doing your thing. Good Luck.
dRends35
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@eganon69, Well my preference would be not to trade so late, especially when there is little demand. I can let you know when I'm going short if you like?
eganon69
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@dRends35, OOOH. Yes that would be GREAT. You know how much I value your opinion....
dRends35
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@eganon69, Ok I'll let you know. I'm using a powerful algonquin btw. It has a 98% hit rate.