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June 23rd 2020, Crypto Chartbook: Success is when preparation meets opportunity

Korbinian Koller, Midas Touch Consulting
0 Comments| June 23, 2020

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Success is when preparation meets opportunity

Why screen exposure and overall experience is so needed in the field of trading is related to the fact that the market has a high degree of variability. It takes years to have seen at least a good part of the various things the market can do. If you do not have this lengthy exposure then you will be surprised or in doubt or otherwise emotionally stimulated each time the market throws something new at you. You will automatically be triggered to an intuitive response to cope with that sort of stress. Unfortunately, since the market is counter intuitive by nature you will make literally each time the precisely wrong decision. Success is when preparation meets opportunity.

Another factor that skews the outcome of a novice trader from a random one to a consistently losing one is, that most market players start out being underfunded. This makes accounts quickly blow up for two reasons:

  1. Position size being too big violates principles of harmonious equity curve development. To clarify, too large losses are impossible to recover from. (If you lose 50% from your account, it requires 100% profits to just be at breakeven again)
  2. The psychological factor of trading too big. In other words, if you do not care about the outcome of your trade (that would be the appropriate size of money exposure) you make rational clear decisions within a trade and follow your rules. On the other hand, if you trade too large, you get emotional when you are in a trade. You make multiple mistakes (like getting out too early, running stops, trailing stops too tight and so forth)

BTC-USDT, Monthly Chart, Channel Breakout – When?



BTC-USDT, monthly chart as of June 23rd, 2020

Looking at the monthly chart above we see prices above US$10-11k strongly rejected for more than the second half of last year. Long wicks on the monthly candles illustrate that clearly. This year, approaching these numbers has met with a lot less resistance. Once the channel lines break, we could see price movements quickly get in motion as we have seen many times prior in Bitcoin trading with vehemence.

The most important part is not observing these movements but being prepared in detail on how to participate in such bullish scenarios. A detailed plan is much more essential than asking the question of “when”. Looking for confirmation in most cases means being late to the party.

BTC-USDT, Weekly Chart, Don’t Miss Out:



BTC-USDT, weekly chart as of June 23rd, 2020

“V” shaped recoveries are the strongest ones. Many ways lead to Rome. It matters much less on how you will participate on the upcoming Bitcoin rally than to not miss the boat. Now that does not mean to just go out there and buy a few Bitcoin. Far from it. It means that preparation time is now. Should you not be positioned already we advise strongly to make a plan on how to participate in one of the possibly most extended price moves Bitcoin has seen up to date over the upcoming years. Low risk positioning with utmost care in one’s preparation early on, is considered at Midas Touch as one of the most important ingredients for a successful investment strategy.

ETH-USD, Monthly Chart, Success is when preparation meets opportunity :



ETH-USD, monthly chart as of June 23rd, 2020

The crypto space has started to partially split of from its main ‘Bitcoin-Index’. In other words, in the future there will be various sectors, just like we have in main markets as well. Therefore it is wise to make position size allocations to other trading instruments within this investment field too. This is especially essential for long term investing. Fundamental data driven instruments like Ethereum for example, will outperform weaker peers. Looking at the monthly chart of ETH above it becomes evident that there is no time to waste to take advantage of favorable risk reward ratios for desired main holdings a portfolio should be comprised of.

Success is when preparation meets opportunity

It matters what the market’s gonna throw at you. It matters even more how you’re going to adapt with it. Your truly only chance is to be prepared. As an inexperienced market player it is extremely frustrating to listen to traders who are exposed to the markets for a long time who ramble on that it is all about screen time and experience. You can’t bridge that because you can’t bend time. But you are ready NOW. You want to make money NOW. You want to trade NOW. The cruel truth though is that rushing this equals losses.

The disciplined trader who accepts and realizes that this is a profession and a dangerous one if attempted fool-heartedly, is the one who will come out ahead. The impatient ones will end either emotionally or monetarily broke and most likely both. Accepting the fact that this can’t be attempted as a hobby and that there is no shortcut to success, is most likely the most crucial part to the success puzzle of them all.

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