I don't have a daily written trading plan.
My trading plan, if it can be said to exist, is more or less the system that I described in the first post, granted that I have settled upon this system for at most a few weeks. (I first started trading around two months ago.)
More particularly,
(1) I look at one crypto in particular. (I have attempted to transplant this system onto other cryptos (quite unsuccessfully). I decided upon this one crypto, because it seems to have more vitality compared with other cryptos of similar market cap.)
(2) I look for signs that an upswing is happening or is about to happen. I usually do this via volume analysis. By volume analysis, I mean looking at the volume and price data on the chart. I don't usually use indicators.
This process is without a doubt subjective and intuitive. Usually, I look for (a) a serious down swing, (b) stopping volume, (c) further efforts to the downside stalling, and (d) volume tapering off with price moving sideways - in that order. I also look at hammer candles, (if they occur in clusters).
I don't enter immediately, as I have been told not to enter during accumulation. However, I start looking for potential breakout entries.
(3) When a breakout seems likely, I apply the system. In terms of the system, I also look for: (a) trapped bears, (b) prolonged consolidation, (c) price breaking clear water, (d) and high volume as price moves past resistance, and (e) a possible final push to the downside before the breakout.
(4) After I enter, if I entered successfully, I would set my stop loss around or slightly above break-even. Then, I would wait. Once price has moved up quite a bit, I might move my stop loss up as well. Ideally, I would sell when price stops "acting right". However, I have rarely been successful. (I can usually spot price not "acting right". However, it is hard to force myself to pull the trigger. Instead, I move my stop loss up right below price, so that even if I don't sell at the very top, I am selling near the top.)
(2) I look for signs that an upswing is happening or is about to happen. I usually do this via volume analysis. By volume analysis, I mean looking at the volume and price data on the chart. I don't usually use indicators.
This process is without a doubt subjective and intuitive. Usually, I look for (a) a serious down swing, (b) stopping volume, (c) further efforts to the downside stalling, and (d) volume tapering off with price moving sideways - in that order. I also look at hammer candles, (if they occur in clusters).
I don't enter immediately, as I have been told not to enter during accumulation. However, I start looking for potential breakout entries.
(3) When a breakout seems likely, I apply the system. In terms of the system, I also look for: (a) trapped bears, (b) prolonged consolidation, (c) price breaking clear water, (d) and high volume as price moves past resistance, and (e) a possible final push to the downside before the breakout.
(4) After I enter, if I entered successfully, I would set my stop loss around or slightly above break-even. Then, I would wait. Once price has moved up quite a bit, I might move my stop loss up as well. Ideally, I would sell when price stops "acting right". However, I have rarely been successful. (I can usually spot price not "acting right". However, it is hard to force myself to pull the trigger. Instead, I move my stop loss up right below price, so that even if I don't sell at the very top, I am selling near the top.)
As an example,
(1) During the recent crypto crash, price fell from over 0.200 to below 0.100. Around 0.095, I had a strong feeling based on volume analysis that that was indeed the bottom.
(2) I set up my system to start working around 0.098.
(3) Then, unfortunately, as price moved up from 0.098 to 0.120, I kept getting stopped out.
(4) Around 0.120, due to FOMO, I abandoned the system and started buying in in huge quantities.
(5) Price started falling from 0.120 to 0.098. During this process, I sold around 0.099. (Remember that I had abandoned the system already. I sold, however, because I remembered that limiting my losses and protecting my capital was the most important priority.)
(6) After price moved sideways for a while around 0.098, I bought in again. I bought in again, because I told myself that I should trust in my judgment based on volume analysis, and that there were signs that the fall from 0.120 to 0.098 was merely a pullback.
(More particularly, the volume on the down candles was abnormally huge. Price did fall as a result, but did not fall as much as expected. My judgment was that, as volume tapered off due to profit-taking sellers having sold off their holdings, price would soar again.)
(7) Then, Price went up to 0.200. During this process, when price moved to around 0.160, I moved my stop to around 0.145. Then, I was stopped out. Afterward, I kept trying to get back in using my system, but was stopped out each time.
(8) I gave up, when price moved past 0.180. Fortunately, this was near the end anyway. Price has fallen since then from 0.200.
(2) I set up my system to start working around 0.098.
(3) Then, unfortunately, as price moved up from 0.098 to 0.120, I kept getting stopped out.
(4) Around 0.120, due to FOMO, I abandoned the system and started buying in in huge quantities.
(5) Price started falling from 0.120 to 0.098. During this process, I sold around 0.099. (Remember that I had abandoned the system already. I sold, however, because I remembered that limiting my losses and protecting my capital was the most important priority.)
(6) After price moved sideways for a while around 0.098, I bought in again. I bought in again, because I told myself that I should trust in my judgment based on volume analysis, and that there were signs that the fall from 0.120 to 0.098 was merely a pullback.
(More particularly, the volume on the down candles was abnormally huge. Price did fall as a result, but did not fall as much as expected. My judgment was that, as volume tapered off due to profit-taking sellers having sold off their holdings, price would soar again.)
(7) Then, Price went up to 0.200. During this process, when price moved to around 0.160, I moved my stop to around 0.145. Then, I was stopped out. Afterward, I kept trying to get back in using my system, but was stopped out each time.
(8) I gave up, when price moved past 0.180. Fortunately, this was near the end anyway. Price has fallen since then from 0.200.
Ultimately, there was a small profit, but much less than what I could have obtained, as I kept getting stopped out. In this instance, if I had simply relied on my judgment instead of the system, then I would have made a much bigger profit. However, in many previous cases, the system saved me from losing a lot of money, and the failure to use the system cost me a lot of money.
The other issue was position sizing. During my initial unsuccessful efforts, e.g. when I bought at 0.120 and sold at 0.099, my position was larger. Then, when I bought in again around 0.098, my position was smaller. This was because I became cautious after losing money. However, this ultimately limited my profit.
I feel like I need experienced eyes to tell me whether I am doing something wrong.
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