Yesterday, this short position $BTC hit a loss, so let's review this failure case.
Although it was not successful, reviewing can help us understand where we went wrong, right?
First, the entry point for the trade was merely for the sake of trading. In fact, the range between 84000-86000 in recent days is not a good position to enter a trade. Previously, the market analysis mentioned that it is better to enter long below this range and take profit above it.
Yesterday's short position can be said to have been a forced trade; entering at the wrong time greatly increased the probability of hitting a loss later on.
Next, let's talk about the stop-loss level. There is actually nothing wrong with the stop-loss level; the pressure at 86000 yesterday was still very strong, as evidenced by the attempts to break through this level during the day that ultimately failed. Why set the stop-loss here? First, it is a level with significant pressure, making it a position that is easy to defend but difficult to attack during a struggle. If the price breaks through this level, it would stabilize and switch from pressure to support, leading to greater pressure to break even later. So, there is nothing wrong with this level; the only aspect we couldn't account for is the 'spike' because this spike is something we cannot control. If we try to control this spike, the stop-loss level or the cost could be too high. Therefore, there is no issue with the entry point.
As for taking profit, everyone will have different biases. If you can withstand the pullback, you can achieve greater profits, but the risks will also be higher. Another saying is 'sell high, always profit'; when you reach the pressure level in your own trading system, reducing your position or taking profit to prevent profit reversal is also a good choice. Therefore, in terms of taking profit, it's not about where the teacher's levels are, but rather about what your own thoughts are.
