Thread by @omzcharts

Learning lesson thread coming tomorrow morning #BTC #Crypto

Will cover -

• Charting vs. Trading
• Missed opportunities
• Probability
• Emotions

I'm writing this thread for my own personal reference (in the future) and for anyone that is interested to see my most recent experience trading Bitcoin. Everything in this thread covers the last week of
my trades, mindset, executions, emotions, etc...

Charting and trading are two totally different games. It is important to understand this, especially if you are a new trader or investor in this industry. Anyone can make a chart that plays out, but just because the chart plays out does not mean the trader executed properly.

In my most recent trade, I was short #BTC at $48,800 with a target of $43,000. I had the entire trade structure and idea planned out many days before I even entered. After entry, I let the trade play out as planned and did my best to not micro-manage the position.

#BTC dropped $2000 towards $46,800 and we reached the September monthly open. I decided to exit my trade because every time we tested this level, there was a big bounce. However, I did not factor in the amount of times it was tested, and the fact that my target was 10% lower.

I rushed my decision was well, I did not think it through. I made this decision within a few seconds, closed the trade, and left my house. This was not part of my plan. #BTC dropped 15% after my close, an extra $6000 drop after my exit.

I try very hard to stick to my plan and my targets, but this right here is a clear example of the difference between trading and charting. While I did make money on this trade, I could have made a lot more.

Missing an opportunity to make huge money can sometimes be even more devastating than losing a trade. For me, this was the case with this setup. I knew exactly what was going to happen, I planned it all, even drew it out with a squiggly line, and it played out perfectly.

The only thing that stopped me was myself. Making this simple mistake started a rollercoaster of emotions and negativity within myself. I started trying to find an opportunity to make that same amount of money that I could have made had I held the trade to target.

This is a very toxic mentality to have, I was aware of it, I don't normally do this, and I was disappointed in myself. After we reached my target (not being in position), I went on a scalping losing streak that costed me the profits that I made from the original close.

This losing session was heavily influenced by my emotions and over the simple fact that I could have been up X amount and I was chasing that goal. You're not supposed to chase in this market, let the trades come to YOU.

Trade your strategy, trade what you know. Take trades that are high probability setups. I would say that all of the scalps I entered had a 20-30% chance of playing out, when normally I only enter trades that are above 60% probability.

I have always preached that there is always a new trade opportunity and a new setup with patience in this market. This is important to always keep this in mind, especially after missing out on potential profits.

Although I didn't lose in this experience, my emotions and mental took a massive toll. It's not easy to act like a robot in this market, sometimes it gets to you and it for sure got to me on this move, especially since I knew #Crypto would drop heavily.

After this experience, I've decided that if I ever miss out on a big trade or exit too early before target, I will not trade for the next 24 hours to refresh my mind and come back to a new chart.

This was a big learning lesson for me. I could have traded this move so much better and profited 10x more. The best part about this market is that there will always be a new opportunity in the future. Never forget that. I hope some of you took away something from this. Cheers!