The battle for $10000
The Market Tale (Sep 21, 2019)
“This is getting old” said Bear, looking at BTC chart. “Breakdown, followed by stop run, followed by slow retracement. How are we supposed to trade this?”
“You can always short the stop run,” said Bull, pointing at the largest green candle.
“But where do I place a stop?”
“Just above the last stop run candle. Wait until the move stops, then short it”
“That’s one way, I suppose. Meanwhile, what are the altcoins doing?”
“Consolidating. What else would you expect from highcaps after 20% gains?”
“I was expecting the weekend to be more eventful”
“Me too. But our positions can’t influence the market.”
“I have enough money in the bank to move some midcaps.”
“Yes, but do you want to?”
“You’re right. We’ve got to choose the markets where we are small fish, specifically because we want low slippage, and for that we need high liquidity — much higher than our own position sizes”.
“Exactly. Trading is unlike other games — it pays to be small.” concluded Bull. “By the way, those midcaps you talked about is another case where it’s good to be small. They can move by 100% in one day, but what’s the liquidity? No use in paying attention if you can only make 0.5 BTC per move.”
“That’s why they have long accumulation ranges. People start building large positions before the move occurs.”
“I know. As breakout traders, we can only enjoy whatever liquidity we have after the range is broken.”
“And it’s good to have low liquidity after breakout — that means other people aren’t selling, so the trend will develop faster.”
“Can’t wait to trade again when this consolidation is over.” finished Bull.
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