Trading Journal - Shorts & Longs, Losses & Wins
What a week it has been and it's only Thursday! We've got the ongoing war FUD with the risk of US involvement hanging in the air. We had the FOMC yesterday and Powell's speech, which I was actually listening to. I must say that I kind of like Powell's voice. It's calm, almost soothing. The listener gets a feeling that everything is going to be alright, or at least that they are on it.
In my previous blog post, I was sharing my thoughts about the volatile week and saying I was going to be focusing only on spot trading and probably going to sit on my hands. Well, that didn't work out quite like that... Let's have a look at some of the trades I made!
$SUI & $BERA Hedge Shorts
The native token of the relatively new Berachain,$BERA, has been on downhill for quite some time, and I thought of taking advantage of that and the general market uncertainty by shorting it a bit.
This didn't go too well as the entry was placed in the middle of a short recovery bounce. I was probably too focused on the Bitcoin price and ignored the long wick it had made and the increasing volume.
Even though the entry was bad, this could have still become a successful trade if I had set my stop-loss higher, as $BERA clearly got rejected on the upside while failing to create a higher high, continuing in a downtrend.
Another very similar trade was the $SUI short.
Here, I was pretty confident that it was going to get rejected from the descending trendline and continue lower with a declining BTC price. However, the sentiment shifted, SUI broke the resistance, and my order was stopped.
As for $SUI in general, I'm bullish in the long term and had actually added some spot SUI, so this was sort of a hedge trade and hoping to see SUI move higher in the future.
$INJ Long Trade
Now, this one proved to be a much better trade in every way.
I've been trading and monitoring $INJ for a long time, and yesterday I noticed it coming down to test a very interesting support zone. If you look at the daily chart below, you can see INJ testing this level as resistance a couple of times before breaking through. However, this level was never tested as a support until now.
Zooming in, and here in the chart below, we can see INJ breaking the diagonal trendline, and that was where I put in my long order.
INJ had bounced back nicely from the big support, creating a long-wicked candle, while soon after that, there was also volume to back up the surge.
The trade is still active and is currently up +62.30%. I just raised my TP (thin line in chart below), making this a successful trade even if the TP is hit, so this will cover the losses of those BERA & SUI trades and earn me a nice profit as well.
Normally, I wouldn't be so keen on raising TP as this is a good trade and I do believe it would carry on in the long run, but I have those failed shorts to cover, so playing it safe here and making a profit.
Conclusion
Taking hedge trades hasn't been part of my strategy, but I can see some benefits to it when there's a lot of uncertainty in the air. I also have this rule that leverage should only be used to buy spot, and that's what I'm planning to do with the INJ profits.
$HYPE is currently downtrending, and I'm thinking about using the INJ gains to add to HYPE spot when the time is right and I've found a good entry.
Interesting to see this through, though, there's still some room within the INJ trade before stop-loss...
Have you been trading this volatile week or been touching grass? Let me know in the comments 👇
Thank you for reading!
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Posted Using INLEO
Nice trade on INJ.
Thanks! INJ could do well in the long run if the market picks up. Tokenomics look good & interesting developments happening there.