Barchart<\/a> for resistance and support.<\/p>\n![\"223faa9ef64fce042a8989ad778aa2b2b046563dce51a3088df9ac85cf358936.png\"](\"https:\/\/cdn.publish0x.com\/prod\/fs\/images\/223faa9ef64fce042a8989ad778aa2b2b046563dce51a3088df9ac85cf358936.png\")
<\/p>\n
For this post, we’re buying and setting a TP\/SL, rather than looking at an existing holding.<\/p>\n
The market’s been moving pretty much sideways. That makes me think that it’ll probably continue like this for a little while – perhaps a horrifically bad assumption, but I don’t know shit because I don’t do TA.<\/p>\n
The first support is around $1,854.<\/p>\n
Given my assumption of sideways movement, I’d set a limit buy somewhere between $1,855 and $1,860.<\/p>\n
But the profit matters, so let’s look at that.<\/p>\n
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<\/p>\n
First resistance is around $1,888. Let’s round that down to $1,885.<\/p>\n
That’s a $25 to $30 difference from the proposed limit buy point – more than my 1% requirement.<\/p>\n
And it’s not too big a climb. It’s inside the current support\/resistance levels, it’s a tiny move, it could easily happen quite quickly.<\/p>\n
So I’d put my buy at $1,860 and set the TP to $1,885.<\/p>\n
I don’t use SL (BTC and ETH always go back up) but generally the best idea is a 2:1 or 3:1 risk-to-reward ratio, so on a $25 different, you’d set SL at $1,847.50 (2:1) or $1851.66 (3:1).<\/p>\n
And that’s it.<\/p>\n
How Much To Put In?<\/h2>\n
Pretty much every article I’ve seen on this subject says “Never put in more than 1% or 2% of your total investment.”<\/p>\n
They’re obviously writing for people with money and time to spare.<\/p>\n
2% of the $10 it took you 6 months to earn from faucets is… $0.20.<\/p>\n
You can’t even place an order that small.<\/p>\n
![\"giphy.gif\"](\"https:\/\/media4.giphy.com\/media\/v1.Y2lkPTc5MGI3NjExNmVjcXp3am80c3Fia3h0cmd6MmR3NWt4d3M4N2N3YXRiOGE2NGphaSZlcD12MV9pbnRlcm5hbF9naWZfYnlfaWQmY3Q9Zw\/l3q2Hy66w1hpDSWUE\/giphy.gif\")
<\/p>\n
Me? I chuck about half in. Sometimes a third. This is my “up” trade.<\/p>\n
The rest I keep for a “down” trade, in case the market drops significantly and I need to start from a lower baseline.<\/p>\n
SL Variations<\/h2>\n
The other thing that I’ve never talked about because I don’t use it, is SL variants.<\/p>\n
There’s Stop Loss, Stop Limit, and Trailing Stop – not all of which are available on all exchanges.<\/p>\n
In my example, Stop Loss sells the ETH when the price dips below the SL level. It sells at market price<\/em>, so it might actually be a bit lower. The sale is guaranteed, but the price isn’t.<\/p>\nStop Limit puts in a limit order at the SL price when the market price dips below the SL level.<\/p>\n
![\"giphy.gif\"](\"https:\/\/media2.giphy.com\/media\/v1.Y2lkPTc5MGI3NjExZzYwdnN1amJpcjE3cXA0NjM5dWdlZHA3N2xhZGkxb2VkeW1vNGN4OSZlcD12MV9pbnRlcm5hbF9naWZfYnlfaWQmY3Q9Zw\/OxQv20is5XVJVc7GNs\/giphy.gif\")
<\/p>\n
If you set your SL at $1,847.50 (the 2:1 ratio from my example) and the market price goes under that, the Stop Limit creates a limit sell order for the ETH at $1,847.50. The price is guaranteed, but the sale isn’t.<\/p>\n
A Trailing Stop does a clever thing where you set the amount below your buy price for the SL – either an amount or a percentage – and a period of time to do the Stop. If the price drops below that, it sells. But if the price\u00a0rises<\/em>, the Stop level follows it up.<\/p>\nSo let’s say we bought at $1,860 and set a $12 Trailing Stop for a day. If the market suddenly dips to $1,847 within that period, the Stop kicks in and sells our ETH. But if the price goes up to $1,875, the Stop follows it. The price would have to drop back to $1,863 (the new price minus our $12 Trailing Stop setting) or lower for the Stop to trigger (still within the one-day period).<\/p>\n
I don’t use SL, but that’s clever.<\/p>\n
Do you have a defined strategy? Was this at all helpful? I’d love to hear from you!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Everyone always says that. “Define a clear entry point, a clear TP, a clear SL, a clear % to invest each time!” But have you ever seen an example, or…<\/p>\n","protected":false},"author":3,"featured_media":367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[16,9],"class_list":["post-366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-midweeks","tag-strategy","tag-trading"],"_links":{"self":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts\/366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=366"}],"version-history":[{"count":1,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts\/366\/revisions"}],"predecessor-version":[{"id":368,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts\/366\/revisions\/368"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/media\/367"}],"wp:attachment":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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<\/p>\n