Re: It's called a correction (waveaddict's bitcoin charting subscription thread)
Unless you have lots of capital and balls of steel, I strongly recommend against shorting bitcoin.
I would have to agree unless you have very tight stops in place...and even then a stop doesn't protect you if the price gaps up. There is an old adage about never attempting to catch a falling knife (buying during a collapse); the same can be said about trying to stop a rocket (shorting during a bubble). (...)
Does it mean that you always buy/sell at market?
When it comes to limiting risk, I always sell at market if a key technical area (~stop-loss point) is breached which goes against my trade. The risk of the market not pulling back is just too great in most circumstances. Plus, this helps take emotion out of the equation. But, when it comes to buying or selling into or out of a position, I usually stick with limit trades spread throughout a key technical area. Again, this helps take emotional trading out of the equation. Basically, I do everything possible to suppress my emotions
