The Wolf Den #143 - Happy Holidays! Enjoy And Unplug.
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This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!The market always tends to humble us right when things are going best. As I tweeted recently, I was on a somewhat epic win streak, finding bottoms and tops and trading them for profit. My tweet said that I would inevitably start losing, as trading always reverts to the mean.Well, yesterday, after taking a nice win on LINK, I decided to take another long on the same coin. I did not "get rekt" or lose more than I intended, but the market very quickly showed me who was boss. I stopped out in a matter of hours.Many of you know that I used to have a rule about trading - after closing any trade, win or lose, I would also close the chart for 24 hours. This prevented be from a bad habit - revenge trading. If I had continued to follow that rule, I would not have taken that trade. Duly noted.The good news is that after my stop hit, price continued to drop another 25-30%! In all my years of watching charts, the price action for those two hours yesterday was arguably the most insane that I have seen. I was feeling cautiously optimistic about alts, saying that they were largely oversold and showing bullish divergences. This teaches a lesson - no system or indicator is right all of the time. Coins hit levels of oversold that have never been seen before, with divs failing.I was in LINK around $11.60. I stopped out at $11.19. It dropped to $8.12... and then came ALL OF THE WAY BACK TO MY STOP before dropping again.Savage.It is clear that my instinct in the newsletter yesterday and the days before was that alts are risky and that they were already looking bad. I should have followed my own gut instead of over trading.Why did the alt market dump so hard? It's difficult to speculate, but hard not to point to the XRP news as the likely straw to break the camel's back. More likely, someone saw an opportunity to use this news to make an insane amount of money buying and selling massive alt positions in a coordinated move. Regardless... it's the holidays. This is the BEST time to close the charts, turn off twitter, spend time with family and friends and recharge your batteries. There is absolutely no reason to be trading for the next few days. Your life outside of trading is arguably more important to your trading than your analysis. You need to unplug, you need to focus on other things.I will personally be taking off after sending this newsletter, so I will not be sending one tomorrow. It's Christmas - my family needs my attention.So happy holidays! Thank you all for choosing to spend time (and money) engaging with me here and on other platforms. I appreciate you more than you now, and strive every day to help you in any way that I can. Today is the last day of the $100 Bitcoin giveaway! I've been doing this for 2 weeks now and some subscribers have won! If you have not done so already, please subscribe to my YouTube channel and comment with your twitter name in the comments of the video linked here.https://www.youtube.com/watch?v=fBmwT5h-U4oIn This Issue:Bitcoin Thoughts And AnalysisAltcoinsChart RequestsBad News For XRPStablecoins Received A Healthy Dose Of ClarityMy Nostradamus MomentMy Recommended Platforms And Tools
The Wolf Den #143 - Happy Holidays! Enjoy And Unplug.
The Wolf Den #143 - Happy Holidays! Enjoy And…
The Wolf Den #143 - Happy Holidays! Enjoy And Unplug.
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!The market always tends to humble us right when things are going best. As I tweeted recently, I was on a somewhat epic win streak, finding bottoms and tops and trading them for profit. My tweet said that I would inevitably start losing, as trading always reverts to the mean.Well, yesterday, after taking a nice win on LINK, I decided to take another long on the same coin. I did not "get rekt" or lose more than I intended, but the market very quickly showed me who was boss. I stopped out in a matter of hours.Many of you know that I used to have a rule about trading - after closing any trade, win or lose, I would also close the chart for 24 hours. This prevented be from a bad habit - revenge trading. If I had continued to follow that rule, I would not have taken that trade. Duly noted.The good news is that after my stop hit, price continued to drop another 25-30%! In all my years of watching charts, the price action for those two hours yesterday was arguably the most insane that I have seen. I was feeling cautiously optimistic about alts, saying that they were largely oversold and showing bullish divergences. This teaches a lesson - no system or indicator is right all of the time. Coins hit levels of oversold that have never been seen before, with divs failing.I was in LINK around $11.60. I stopped out at $11.19. It dropped to $8.12... and then came ALL OF THE WAY BACK TO MY STOP before dropping again.Savage.It is clear that my instinct in the newsletter yesterday and the days before was that alts are risky and that they were already looking bad. I should have followed my own gut instead of over trading.Why did the alt market dump so hard? It's difficult to speculate, but hard not to point to the XRP news as the likely straw to break the camel's back. More likely, someone saw an opportunity to use this news to make an insane amount of money buying and selling massive alt positions in a coordinated move. Regardless... it's the holidays. This is the BEST time to close the charts, turn off twitter, spend time with family and friends and recharge your batteries. There is absolutely no reason to be trading for the next few days. Your life outside of trading is arguably more important to your trading than your analysis. You need to unplug, you need to focus on other things.I will personally be taking off after sending this newsletter, so I will not be sending one tomorrow. It's Christmas - my family needs my attention.So happy holidays! Thank you all for choosing to spend time (and money) engaging with me here and on other platforms. I appreciate you more than you now, and strive every day to help you in any way that I can. Today is the last day of the $100 Bitcoin giveaway! I've been doing this for 2 weeks now and some subscribers have won! If you have not done so already, please subscribe to my YouTube channel and comment with your twitter name in the comments of the video linked here.https://www.youtube.com/watch?v=fBmwT5h-U4oIn This Issue:Bitcoin Thoughts And AnalysisAltcoinsChart RequestsBad News For XRPStablecoins Received A Healthy Dose Of ClarityMy Nostradamus MomentMy Recommended Platforms And Tools