Skip to main content

Featured

[Trade Journal] Bitcoin 67K V-Shaped Recovery: Resisting FOMO and Setting a Trap

 Hello. I am Couch Cappy , striving to survive by sticking to my principles in the rough waves of the market. Today, Bitcoin plummeted to test the basement near 64.9K, and then showed massive volatility by bouncing back vertically (V-shape) above 67K with strong buying pressure. Someone might have chased the pump with euphoria looking at the massive green candle, but I chose a strategy of strictly observing today and setting a 'trap' at my desired levels. [ Controlling FOMO: Why I Gave Up Market Buying at 67K ] The most dangerous thing when a chart violently rebounds is the 'Fear Of Missing Out (FOMO)'. I also had the urge to execute a Long position at market price, but I coldly controlled it. The reason is simple. The macroeconomic trend on the daily timeframe is still in a corrective wave, and a complete reversal to an uptrend has not been confirmed. Above all, if I enter at market price near 67K, the clear defense line (stop loss at 64.8K) becomes too deep, severely ...
Post a Comment
Read more
Labels

[Trade Journal] A $4,000 Short Squeeze Over the Weekend: Surviving a Counter-Trend Pump with a Mechanical Stop

 Hello. I am Couch Cappy, striving to survive by sticking to my principles in the rough waves of the market.

 Since my last journal on Friday, the crypto market has been on an unprecedented rollercoaster over the weekend and Monday. The market initially froze due to geopolitical Risk-Off events in the Middle East over the weekend. However, following a breaking news comment from President Donald Trump, spot buying exploded, creating a terrifying vertical pump of $4,000.

 Amidst this extreme volatility, my directional prediction was completely wrong. But once again, what saved me was strict 'risk management.' Here is the review of my recent stormy trades.

[ 1st Position: Short Entry and the Lesson of Stop Hunting ]

Confirming the rising geopolitical risk over the weekend, I entered a Short position at $70,748, looking downward.

Initially, the drop played out as strategized, and I successfully secured my first profit by mechanically taking profit on 50% of my position at the major support level of $68,500.

The problem was the remaining volume. Driven by the greed to protect my secured profits, I trailed my stop-loss (SL) too tightly to $68,600. Eventually, I was caught in the whales' whipsaw (stop hunting), and my position was cut out near breakeven at exactly 68,609.10 due to slippage.

  • Lesson: I painfully realized that at major support/resistance zones, I must provide enough stop-loss buffer space, fully considering the Average True Range (ATR).

[ 2nd Position: A Massive Short Squeeze and the Victory of the Hard Stop ]

Later, I re-entered a short position with a limit order at $68,800. However, right after my entry, breaking news stated that military operations were delayed, and the war fear evaporated. This triggered a massive 'short squeeze' that forcefully liquidated accumulated short positions, sending the price skyrocketing to 71K. I was looking away for a second, and I got stopped out in the blink of an eye... (T_T)

My direction was completely wrong, but my account is safe.

  • Entry Price: $68,800 (Short)

  • Executed Stop-Loss: 69,811.90 (The mechanical hard stop set at 69,800 was triggered with slippage due to extreme volatility)

Thanks to the pre-set hard stop, my loss was strictly cut off within a $1,000 range. If I had traded on 'hope' without a stop-loss, I would have taken the full force of a $3,000+ counter-trend pump and faced complete liquidation. Taking a loss hurts, but I am relieved by the fact that my principles protected my capital.

[ Current Strategy: Waiting for a Conservative Pull-back Long ]

Now, I have confirmed that the descending channel is broken and the trend has shifted upward. Rather than chasing the price with FOMO, I have activated a strategy to catch a 'healthy pull-back' as the overheated pump cools down.

  • 1st Entry (Limit): $69,800 (MA25 and mid-line support zone)

  • 2nd Entry (Limit): $68,800 (Fibonacci 0.618 and concrete support line)

  • Stop-Loss (SL): $67,800 (Mechanical stop if the trend completely collapses)

  • Take Profit (TP): $72,500 (50% lock-in upon arrival)

After setting up these target prices, I have turned off the chart to block any FOMO and am silently waiting for my limit orders to be filled.

I have detailed my 'power of the mechanical stop-loss' that allowed me to survive despite being wrong, along with my newly established 'precise position sizing system,' in the post below. I hope it helps those struggling with mental management in volatile markets. 

▶ https://couchcappy5.blogspot.com/2026/03/trading-strategy-how-to-survive-when.html

If you want to maintain your principles in the waves of the market and continue a statistical trading journey that doesn't lose, you are always welcome. [Join Couch Cappy and Get a Lifetime Binance Fee Discount] https://linktr.ee/couchcappy

[Disclaimer] This post is for informational purposes only and does not constitute a recommendation or solicitation for any specific investment product. All investment responsibilities lie with the investor, and principal loss may occur depending on market conditions. Couch Cappy supports the safe and relaxed investments of our readers.

Labels:

Comments

Post a Comment