TradeFi Touchbase: Episode 1
TradeFi, the newest product on BridgeDeFi’s BridgeGrow platform, is making a splash in the investor market as an excellent place to park your funds. TradeFi harnesses the expertise of a professional, human trader to generate consistent, sustainable profits with funds raised from TradeFi NFT sales.The profits are generated utilizing strategic trading and rigorous stop-loss measures to minimize risks and increase wealth.
Tune in on YouTube to BridgeDeFi’sTradeFi Touchbase Episodes as BridgeDeFi’s managing director, Malcolm Dare, and expert trader, Ashley Murphy, discuss trading, strategy, and predictions of the market.
Below is an abbreviated version of the transcript from TradeFi Touchbase: Episode 1.
See the whole episode with visuals graphs on our YouTube channel:
https://youtu.be/71X1xXpU4Mc
EPISODE 1:
MALCOLM: Welcome to our BridgeDeFi and TradeFi NFT chat with Ashley Murphy, our expert trader.
Ashley's going to be chatting with us about the markets, how they work, what he looks for when he goes into a trade, and things that we need to be aware of.
He's going to be telling us more about how the trades arelooking,and also what's happening in the market, giving some explanations on what we should be looking out for.
Let’s just dive into it straight away. Ashley, welcome. How are things going today?
ASHLEY: Alright, great.Thanks, Malcolm.Hi, everybody.
We’re looking pretty good at the moment. I must say things are looking quite bullish. I'll quickly run through a little bit of tech analysis just to show those of you that are not familiar with trading. Not to worry, I'm sure you will pick up things as we go along. For those that do,we're looking at the daily chart. We've got a falling wedge situation that's been going on for a pretty long time now. Each one of those candles represents a day just as a quick explanation.You can see from roundabout to 14th of April, it's about two months ago, we've been on a steady decline in the price of Bitcoin.
We've been moving on this downward direction for the last two months, after the most recent high that we saw at just over $31,000, (very short lived, bull ready in my opinion). We've got quite a healthy pullback correction now and you know just with all corrections the big question on everybody's mind now is when are we going to see some kind of a bounce and then the price’ll probably go back up again to retest that previous line or are we going to see the price drop down even lower?
You can see from the swing low to the swing high showing us the golden pocket at roundabout 23,800. So there's a big possibility that’s the next leg down. If the price breaks through this green bar, you're looking at a significant level of support going back all the way to August, 2022. It's the first time we've actually come back to these levels for quite a long time now. If we go and have a look here, this bull rally actually started around Thursday 29th, December 2022 and it ran all the way to April (2023).
You can see this big drop here, on the 14th (of June), which was two days ago when the CPI and the PPI report dropped. Jerome Powell actually dropped a little bit of information that I think he didn't really wanna do intentionally, but he did.He said that it looks like they're going to keep pushing the interest rates for the next couple of years, but they actually did nothing.They kept it the same. They didn't increase or lower it, which was pretty bullish. So, when he opened his mouth and he said that this is going to go on for a couple of years, I think it brought quite a bit of negativity into the market. People panicked a little bit, the investors panicked. Now what's going to happen if the bulls can hold this position over the next few days, I think there is a very big possibility we could see the price go and retest the 26226, 400 maybe Monday, Tuesday.
In my opinion, the price needs to drop another 6.7% more or less for us to reach the golden pocket. And you can see from the timestamp, the time effect is 64 days. On these macro charts, on the dailies and the weekly, we know that things don't just happen. We need a bit of time and unless we didn't break through, we can see the bottom of the falling wedge is inexactly the same place as where this green bar of support is…and we held it. It did breakthrough a little bit. This is what we call swing failure patterns, and these are areas of high liquidity. So, if you go to CoinGlass and have a look at the liquidations that were done on that, I think it's like over 14 million in liquidations.
It's not the place where you want a short position. I opened up a small long and it worked out pretty well. Maybe I exited the trade a little bit early, but that's fine. On taking profits,one wants to take profit when you can, but we don't just randomly bounce into trades. If you're going toopen up a trade and you haven't got a proper trading plan, well, then you don't know what you're doing. You're not trading, you're gambling. You may as well go to the casino. Every single trade we do, we plan out very carefully before we enter and there's a level of discipline to that trade as well.
We accept our losses even before we enter the trade. So, I know if I'm going to run a 10% on a $30,000 equity trade, my 10% is the $3000 and I'll put in a 5% stop loss. I've accepted the loss before I entered the trade. Then I can go and sleep without, you know, pulling my hair. I can have an easy night's sleep instead of sitting there worrying.
MALCOLM: Just quickly before we go, just so we can understand, exactly where would youenter a trade and where would you exit a trade?Give people an idea of how you would trade.
ASHLEY:So, look, what we want to do is remember when entering a trade, regardless of whether it's a long position or a short position, you always want to be looking for areas of high liquidity. These are the most common areas where traders, especially retail traders, will look to put in trades. For example, the Golden Pocket is a very well-known area. All the algorithms that are written for the exchanges are written based upon the Fibonacci retracement tool. The big traders, the money makers, can see where the retail traders are putting their orders and where they're putting their stop losses. It's not a question of where you enter, but when you enter. Timing is very, very important. If you go into the market too early, you're going to get stopped up because that's what they're going to do. They are looking for liquidity. You’ve got to remember the money makers, the market makers, they need liquidity to move the markets.
And where do they get the liquidity? Unfortunately, it’s given. They go and find it. They're going to take it from all the retail traders and from the dumb money. As traders, because we're not privy to all the info and data that the whales, the money makers and the market makers have. 80% of traders lose money. You’ve got to be the 15-20% that will actually do well with training. The reason why they become the 20% is because they put themselves one step ahead of the money makers. You have to be as smart and maybe, a bit smarter. We know what they're doing, and we need to protect ourselves. The normal retail traders get stunned time and time again because they keep making the same mistakes over and over again.
If I'm looking for an entry, first of all, I'm going to go and have a look at order blocks, which I'll explain to you later what those are. I'm going to be looking for areas of high liquidity, and then I'm going to be looking to place a long position. Remember-we always long into strength and we shorten into weakness. Makes sense, right?
In our case, I went with the long position and I was 100% right. We went green and you can see the price bounced off the support. Now,it's gone up and we are doing it all over again. Basically, we reached a new high. We are going to see that it's breaking through and a lot of people think this could be a good place for a short. NO, NO and NO. Again, you never do it. You never short at levels of support until it's broken. The Golden Rule: You never short positions at the levels of support, just like you never long positions at levels of resistance.
Today and over the weekend I'm looking to run a long position. We would run the stop loss maybe a little bit lower just so that we don't get wrecked. A lot of traders either run too big a stop loss or run it too small. And then what I'll do is aim for around 26, which would be the next level of resistance for taking profit. It's not bad. Doesn't look like much in 2.7%, but on a 10X leverage trade, that's 27%. So wonderful. Not going to complain about that. We've got two positions already in the last couple of days of really pretty decent trades. If one stayed in that position and you entered there, you're now looking at 4.7.
MALCOLM: Excellent. You know, we spoke about this a few days ago where we could find ourselves in a trade for possibly even weeks at a time if they are really strong positions.
ASHLEY: Yeah, but for the meantime, a quick little prediction here for you,I think we're going to see this back into the golden pocket over the next month or so.I think this is inevitable. I think that GoldenPocket is inevitable.We can absolutely see that we are in a downward trend and we have been for the last two months that's looking at from a macro scale, and we always must give macro scales preference over short time frame analysis.
MALCOLM: That’s excellent information. Thanks, Ashley. Remember the beauty of what we're doing with TradeFi and what Ashley is doing means we can make profit on longs and shorts, because we trade both. So yeah, don't think, “Ohh wow, the markets going down, what's happening?” We still make profit from both, and that's the beauty of this product. Get ready to learn a lot more about trading because we’ve got a great offer coming to you.
ASHLEY: Can I just say one more thing? I’d just like to tell all the investors, as a trader, I want you to know this: No matter what direction the market moves, as a leverage trader, I make money. Whether it goes up, sideways or down. It’s why I'm a leverage trader because it allows me to trade the market in whichever direction, so I really don't care what the price of Bitcoin is. It's irrelevant to me. At the end of the day, all I care about is market analytics, the analysis of the charts. All I need to know is what direction the market’s moving and we can make money.
MALCOLM: Thanks so much, Ashley.
ASHLEY: Cheers.
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