I watched in real time NEO, for example, drop 25% in an hour.
I also told my viewers in real time where the support level was, around $26.50.
So far, that support level has held. NEO doubled over the past week as fears over China's crackdown on cryptos would destroy the market for it. EOS also finally got off the mat and popped from $0.55 to a high of $0.83.
Both have pulled back from those highs thanks to South Korea's announcement, but neither of them suffered any technical damage.
NEO is trading this morning above $28.
My advice last night was to buy in tranches because you don't know what the market is going to do. If it bounces off support, it could snap back to the high very quickly. Buying a 1/3 position last night around $26 would have been smart.
If $26.50 didn't hold through the night, then support at $22-23 comes into play. If you then buy at that level with the rest of your money you not only get more NEO to claim GAS with you are in at an average price of around $23.50.
Say you have $600 to put into Neo. Buying $200 at $26 gets you 7.69NEO
Buying $400 at $22.50 (middle of the support area) gets you 17.78NEO.
Total = 25 NEO to move to your NEON wallet and claim GAS with (making a tidy 7-10% dividend) and 0.46 left over to trade into the next bounce higher and rotate into an ICO coin that you think is cool. That 0.46NEO will be pure profit that you can then deploy to take speculative bets with.
I did exactly this with a couple hundred bucks the other day. Buying 8 NEO at $25.50 to claim GAS with and build my portfolio. The leftover I sold into the peak at $33 and converted into 18.7EOS at $0.63. Now, that EOS is up 17% and I'm claiming GAS as well.
You aren't omnipotent. Charts area guide to your trading strategy, not hard and fast rules. Buy in tranches and sell the same way, leaving a little money on the table is not an opportunity cost, it's the price of IMPERFECT KNOWLEDGE OF THE FUTURE.
Legendary trader Jim Sinclair calls this "Leaving 20% of the top and bottom of a rally on the table for the God of Greed." This is how professional traders trade.
Believe me, I've made the mistake of not taking this advice enough to know that this works a helluva lot better than catching bottoms and tops. I was lucky in my NEO/EOS trade to catch the top.
I only pulled the trigger because EOS had just confirmed a breakout above $0.63. It was still a risky trade, but I set my odds up right.
These 'event trades' like the opportunity offered by Korea last night are gifts. Don't get too greedy accepting gifts from the money Gods.