AMA Trading Sharing Session with Bitget Top Elite Copy Trader Joel Straight: Summary


Twitter Questions

Q1: Support and resistance are common in crypto trading but many people use it and there are still many who are trapped in false breakouts, and this often happens because the crypto market is very volatile, so how do you avoid this in your opinion?

A: First things first, you’re never trapped. You may need to bail and take the loss. Minimizing losses is an important skill. 2nd, note that crypto and all markets are volatile and carry with them inherent risk, so make sure you aren’t risking anything you can’t afford to lose.

Now that that is out of the way, there is a lot you can do to identify if a support and resistance level is going to hold .

  1. Determine your trade plan prior to entering a position.
  2. How long do you plan to hold this position?
  3. Where are you going to get in?
  4. Where are you going to take profit?
  5. Where will you bail if things don’t go your way?
  6. I use other indicators, past my own technical analysis to interpret volume and sentiment
  7. Wait for the best Setups that fit your strategies, and have something else going for it besides just support and resistance

Q2: How do you anticipate a drastic change in the BTC price like September 7 ago, to minimize losses when open positions?

A: This one is a toughy because its practically impossible to time the market. This is where your trade plan comes into play.

In my previous answer, I laid out a set of questions to ask yourself before you take a trade.

  1. Determine your trade plan prior to entering a position.
  2. How long do you plan to hold this position?
  3. Where are you going to get in?
  4. Where are you going to take profit?
  5. Where will you bail if things don’t go your way?

Further, the use of stop losses in this case would be very helpful in protecting your account from big losses.

Remember that Risk Management is one, if not the most, important skill that any trader can develop.

Q3: How can you read the breakout in 1 minute timeframe? isn’t the candle on the 1 minute timeframe very difficult to read especially when the trading volume is small? and a lot of manipulation in it.. can you give us some tips?

A: From someone who uses the 1 min chart almost exclusively, I don’t believe there is a lot of manipulation in it. Just people and institutions taking profit along the way.

For me, learning to read the 1 minute chart had a lot to do with learning chart pattern s that are specific to 1 minute breakouts.

Specifically, I focused on learning the 1 Min Pullback, and the ABCD pattern, which is a consolidation pattern.

I would take some time to learn chart patterns. There are tons of YouTube videos and blog posts that talk about these patterns.

Additionally, for 1 minute patterns, your strategy should be focused on short trades, Typically, you would use the 1 min chart for scalping, not enormous breakouts that last for long periods of time. I’m usually in and out of a trade within 5 minutes

Now if scalping is your intention, the 1 min chart works great. For longer term trades, use longer term charts.

Also, when trading volume is low, I DO NOT TRADE. Volume is probably the single most important indicator in whether or not price movement and support/resistance levels will be respected.

I often find myself during a trading session saying “without volume, there is not trade.”

Q4: If you use a 1 minute breakout pattern then where is your stop loss? because it is very difficult to determine stoploss in such a small timeframe.

A: For myself, I don’t personally use the stop loss tool when I’m trading 1 minute breakouts. I set what I call a “Mental Stop” which is influenced by the chart patterns developing in front of me.

Typically, my mental stop is about 3% below my entry point, and unless I have compelling evidence from several indicators that the dip is very temporary, I will just take the loss and move right on the next trade.

My mental stop on 1 minute is from years of watching 1 min chart patterns, which I described when I was discussing my trading strategies. Further, when trading the 1 minute chart, I’m watching for those 3 chart patterns setup that I also indicated in my 1 Min Pullback strategy.

Q5: What do you think are the qualities that make a good Trader?What was the best trade you have ever made? What was the riskiest trading decision you have ever made?What strategies do you use to evaluate risk?plz share Ur idea sir ..

A: I believe every trader needs to posses

  • Patience
  • Passion for learning your craft
  • Desire to grow consistently over rapidly
  • Maintain a growth mindset

Stoicism and Emotional Control ++++ Super Important!!

Checkout the book Meditation by Marcus Aurelius to help develop your emotional control

Its available for free all over the internet

Trade with a purpose

Why are you showing up to the market daily? If its for profit, identify exactly what your intention is to do with those profits. What change will that make in your life?

  • Focus on trading within your experience level. If you’re a newbie, learn and get great at 1 specific strategy, as you grow, and learn more, your profits will grow as well.
  • Slow growth is better than no growth or haphazard growth

What was the best trade you have ever made?

As I have been buying BTC since 2013, and trading it as I went, I had quite a few great trades on it. But I did purchase BTC at $5k before the huge run up and sold after we past the $25k point last winter. That was probably my best trade overall. But I have had several trades that were day trades that earned me multiple $$s per share/coin.

Some of those were my most profitable trades.

What I consider to be my best trades are the ones that I take where i follow my trade plan EXACTLY and it works out just how I planned.

What was the riskiest trading decision you have ever made?

The decision to stay out the markets for a period time was, in my opinion a huge loss.

But also changing my trade plan midway through my trade to hold it over night has costed me hundreds of dollars before when I could have gotten out only losing a couple of bucks by just cutting the loss.

Also, in crypto, trading pump coins costed me a thousands of dollars in 2017. Which is why now I stick to coins that have been around for a while and are actively being developed and traded with real fundamentals and technology behind them.

What strategies do you use to evaluate risk?plz share Ur idea sir ..

To evaluate risk, I use Support and Resistance levels, that are mapped out on a 24 hour period, since I’m trading short intervals.

I use the VWAP to help determine sentiment, and with crypto, I take news into account for long term holds. I ask myself what the narrative is for that particular crypto and how is the market receiving that news.