Treating Trading Like a Business

Every successful trader understands that trading isn’t just about mindlessly clicking buttons and hoping for the best—it’s a business! And every business needs a solid plan, strategic decisions, and yes, a journal! My tool of choice? An Excel spreadsheet that feels like a true accounting partner, keeping track of every trade and calculation to ensure organizational clarity.

The Open Conversations of Crypto

Ah, the world of crypto trading—it’s an intriguing space, where traders are curious about each other’s positions, often leading to casual conversations in private DMs or Telegram chats. I aim to give you a taste of my trading routine, hoping that you find my process as educational as it is transparent. Beware, though: some position sizes shall remain redacted because, you know, we all have our secrets!

Understanding Risk and Reward

Before making trades, it’s wise to crunch some numbers. Using a stop-loss strategy tied to a conservative 1% portfolio risk, I enter trades that could yield a significant reward. Let’s look at my Chainlink (LINK) trade:

• Entry: 0.00016499 Satoshis
• First Target: 0.00018564 (11% gain)
• Second Target: 0.000224 (26% gain)
• Stop Loss: 0.00016064 (-2.6% loss)

That’s a risk-to-reward ratio of about 4.5 for the first target and 12.6 for the second! Not too shabby and a good reminder that in the high-stakes world of trading, it’s all about balancing risk with potential gains.

Charting the Path: Analyzing My Strategy

On September 9, LINK caught my attention due to its corrective downtrend after hitting an all-time high. It formed a descending triangle that presented what I like to call a “make or break” situation. A key bottom at 0.00016499 Satoshis was my line in the sand. It reminded me of a game of limbo—how low can it go before it springs back up again?

In hindsight, I should have stayed ahead of the curve—belief in further price depreciation raised my confidence in hitting that first target. By September 19, success came in waves, much like my laundry after a spin cycle.

Bitcoin: Roller Coaster of Emotions

Then there’s Bitcoin, the king of crypto. With a history of dizzying highs and nerve-wracking lows, I set some serious targets for my trades. After reaching an exciting peak of $13,800, BTC was on a downward roller coaster. Yet, even amidst turmoil, intraday and swing trades were calling my name. Here’s my quick breakdown:

• Targets: $9,700 – $10,028
• Entry Ideas: $9,367 and $9,321
• Stop Loss: $9,260

But when I pulled the trigger on one trade, it backfired faster than I could say “oops!” Without a quick stop-loss, I’d have been caught in one of those epic red candle failings that only a true trader would recognize. Losses are a part of trading, but I was glad I avoided an even bigger catastrophe by sticking to my stop-loss plan.

Lessons Learned from the Quantum World of Trading

So what’s the takeaway from all these entries? Keeping a journal is just as much about reflection and learning as it is about profit and loss. My experiences, both good and bad, allow me to review, critique, and hopefully improve my trading strategy. It’s like my own personal time machine, moving me away from confirmation bias and stopping me from repeating past mistakes.

At the end of the day, remember that whether you’re celebrating a success or licking your wounds from a loss, what matters is the lessons you take with you as you navigate the turbulent waters of trading.