Even if the daily trading volume keeps reducing day after day, even if BTC is dancing at a very stable range above the 9000USD since weeks...these "spikes" which appear every now and then are the nightmare for the negligent traders.
In particular for those who play on futures with high leverage in their entries. As sometimes myself, although today I had no open position in the exchange since we have spent the Sunday in the countryside and away from the keyboard...
Look what happens in a matter of a few minutes:
- One long buying candle with sudden increase of volume.
- People entering in the trade desperately trying to follow the huge impulse after a long time of stagnancy
- Immediately sell with higher volume, liquidating all new entries going long...
- Final stabilization on range
Total time: 5 minutes
Number of liquidations: Massive
Lesson Learnt: Never enter on a trade immediately after a sudden spike. Instead, calm down, refrain yourself and keep observing for a while...then, decide.
Daily-trading and scalping requires total attention. If you don't have the time, it is better always to stay out of the trade.
@toofasteddie
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.
