BTC 3/8 - What do w/Emotions, Altcoins, Bitcoin - 25% gains
Mis à jour
3/8/18 12pm EST:
What should I be doing with my bitcoin and my altcoins?
EMOTIONS:
1) Do NOT panic, cool off, then look at everything
2) If you are emotionally charged right now, back off, no decisions made this way will be beneficial - odds are you will sell at the bottom and buy at the top
3) But what if I don't sell and it tanks? So you wait it out, at least you will still have the position and a chance at recovery. If you sell, you locked in the losses.
When you're able to think rationally, move forward with the next part of the plan.
ALTCOINS:
1) As we can see, altcoins aren't getting the best treatment during this time of frenzy, panic, and everyone in the cryptosphere having no clue if they want to predict up or down. One day they say 13k, the next back to 6k, yesterday they said 8k, this morning they said we are going up, and by afternoon that will change again.
2) Altcoins in the green: Plan? Preserve profits. Altcoins in profits we will unload about 50% of our positions. Why? If BTC flies, altcoins will dip as people buy back into BTC; if BTC tanks altcoins will dip as people fear further drops. If we have some alts in the green, we take back at least our initial investment and up to 50% of the total invested.
3) But only 50%? Why not all of it, what if we tank more? Yes, but what if we don't? Say we sell all of our altcoins at this dip and things skyrocket upward....we lose any chance at recooperating our losses and we lock in the losses.
4) Altcoins in the red: Ok next step? Say we're only losing on our coins, what now? Well like in the previous step, we don't want to miss out on re-gaining on our profits, but we also don't want to watch the altcoins tank and not be able to buy the dip. We will sell off about 25-33% of our losing altcoin positions. Use those funds to re-buy the altcoin when it dips more.
BITCOIN:
1) Similar to the altcoin strategy, but a bit more conservative. We'll take 25% of our BTC funds and go into USD.
2) We set those funds for BTC re-buy at key resistance levels. Where-ever we see charts and predictions calling the bottom we will spread out our buy orders - key point here is multiple spread out buy orders - don't predict the single bottom, assume there will be many potential bottoms aka buy spots.
3) But why sell any into USD? What if it goes up and I miss out? Sure. But what if it goes down? We would rather not gain 10% if there is a small pump upwards so that we don't risk another sudden 10-20% loss. Every loss or percentage downward is much harder to regain going upward. Preserve the capital, then find the upward moves.
4) Example of #3 is this: 20k to 10k is a 50% loss so we lose half of our capital. But going from 10k to 20k requires a 100% gain so we need to double our capital. It may seem like the same number, but not to the rest of the market. We may see it as just gaining our money back, but the rest of the market sees it as doubling the market value.
5) See the chart posted below. Take a look at the possible gains when we play it safe instead of risking all of our BTC.
Option 1 (hold all BTC as BTC):
- If we hold and we go from 9200 to 10k we gain only 8%.
- If we go down to 8k from 9200 we lose 14%.
Option 2 (hold some USD):
- If we sell into some USD now, we SAVE 14% on the way down.
- If we buy at 8k, at least that small portion of our funds will GAIN from 8k to that 10k for a 25% gain!
Summary:
- Emotions - cool it before you sit and trade
- Altcoins - don't panic sell, perhaps sell 1/3 to re-buy lower
- Bitcoin - sell 1/4, re-buy at a bottom
- Time - wait, HODL, profit
What should I be doing with my bitcoin and my altcoins?
EMOTIONS:
1) Do NOT panic, cool off, then look at everything
2) If you are emotionally charged right now, back off, no decisions made this way will be beneficial - odds are you will sell at the bottom and buy at the top
3) But what if I don't sell and it tanks? So you wait it out, at least you will still have the position and a chance at recovery. If you sell, you locked in the losses.
When you're able to think rationally, move forward with the next part of the plan.
ALTCOINS:
1) As we can see, altcoins aren't getting the best treatment during this time of frenzy, panic, and everyone in the cryptosphere having no clue if they want to predict up or down. One day they say 13k, the next back to 6k, yesterday they said 8k, this morning they said we are going up, and by afternoon that will change again.
2) Altcoins in the green: Plan? Preserve profits. Altcoins in profits we will unload about 50% of our positions. Why? If BTC flies, altcoins will dip as people buy back into BTC; if BTC tanks altcoins will dip as people fear further drops. If we have some alts in the green, we take back at least our initial investment and up to 50% of the total invested.
3) But only 50%? Why not all of it, what if we tank more? Yes, but what if we don't? Say we sell all of our altcoins at this dip and things skyrocket upward....we lose any chance at recooperating our losses and we lock in the losses.
4) Altcoins in the red: Ok next step? Say we're only losing on our coins, what now? Well like in the previous step, we don't want to miss out on re-gaining on our profits, but we also don't want to watch the altcoins tank and not be able to buy the dip. We will sell off about 25-33% of our losing altcoin positions. Use those funds to re-buy the altcoin when it dips more.
BITCOIN:
1) Similar to the altcoin strategy, but a bit more conservative. We'll take 25% of our BTC funds and go into USD.
2) We set those funds for BTC re-buy at key resistance levels. Where-ever we see charts and predictions calling the bottom we will spread out our buy orders - key point here is multiple spread out buy orders - don't predict the single bottom, assume there will be many potential bottoms aka buy spots.
3) But why sell any into USD? What if it goes up and I miss out? Sure. But what if it goes down? We would rather not gain 10% if there is a small pump upwards so that we don't risk another sudden 10-20% loss. Every loss or percentage downward is much harder to regain going upward. Preserve the capital, then find the upward moves.
4) Example of #3 is this: 20k to 10k is a 50% loss so we lose half of our capital. But going from 10k to 20k requires a 100% gain so we need to double our capital. It may seem like the same number, but not to the rest of the market. We may see it as just gaining our money back, but the rest of the market sees it as doubling the market value.
5) See the chart posted below. Take a look at the possible gains when we play it safe instead of risking all of our BTC.
Option 1 (hold all BTC as BTC):
- If we hold and we go from 9200 to 10k we gain only 8%.
- If we go down to 8k from 9200 we lose 14%.
Option 2 (hold some USD):
- If we sell into some USD now, we SAVE 14% on the way down.
- If we buy at 8k, at least that small portion of our funds will GAIN from 8k to that 10k for a 25% gain!
Summary:
- Emotions - cool it before you sit and trade
- Altcoins - don't panic sell, perhaps sell 1/3 to re-buy lower
- Bitcoin - sell 1/4, re-buy at a bottom
- Time - wait, HODL, profit
Note
Good thing!Note
Don't let the emotions run wild, see what happened!
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.