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!There's panic and fear in the streets as Bitcoin continues to correct. Analysts are already throwing out lower price targets, with reasonable ideas in the mid 20,000s, slightly less likely targets around 20,000 and ludicrous targets below 10,000.As you know, Bitcoin corrections are common, if not expected in any bull run. Everything that has happened so far is completely normal, although price is starting to flirt with action that could lead to a deeper (and somewhat healthier) correction.What is important in times like this is to take a deep breath and remember why you are here. Perhaps you are stressed as a trader if you entered at higher price and are close to hitting your stop loss or being liquidated (which should never be an option). Perhaps you are stressed if you are a brand new investor who bought the top out of pure FOMO.Most of us have been here before and know that this is normal. Breaking 42K again is not a matter of if, but when, in my mind. When you zoom out and take the fundamentals into consideration, nothing has changed. We are just getting started. You just have to remain calm and patient and sit on your hands, avoiding any bad impulsive decisions because your portfolio is down significantly this week.Even as traders, we are investors first. And investors don't react to small time frame moves, unless they are buying the dip. They are never selling at moments like these, even if they think it's likely that price will continue to drop. Attempting to buy and sell at the perfect moments is a fool's errand if your goal is to still be invested for years. This price action will be a momentary blip on the monthly chart. Selling now to try to "buy lower" may be possible, but is more likely to leave you on the sidelines when price reverses, looking for a higher entry.Further, if you are looking to take profit, you take it when the market is up, not when it is down. I took quite a bit of heat for selling Bitcoin around 40K (and some even lower) and for taking profit from my other positions over the past couple of weeks. As a result of those decisions, I feel less stress on the drop and have more options for reentering the market and making more Bitcoin, even though that's not what I was looking to do when I sold. I only took profit because I needed to rebalance, being far too overexposed to crypto as a percentage of my overall portfolio. I did not sell because I was afraid of a drop or because I did not believe price would continue higher. Selling is a part of the game, and something that I try to do frequently to realize gains and an income from trading.I am doing another livestream today at 2 PM EST to talk through Bitcoin price action, what I am looking for and seeing on the charts. Should be a good time! Join me: https://youtu.be/h2q10Z8sPhYIn This Issue:Bitcoin Thoughts And AnalysisChart RequestsBlackRock Is Looking To BitcoinFinCEN’s Harmful Crypto Regulation Is FrozenLearn About Bitcoin From Gary GenslerThe Wolf Of All Streets Podcast Ft. Ryan SelkisMy Recommended Platforms And Tools
The Wolf Den #161 - Don't Panic
The Wolf Den #161 - Don't Panic
The Wolf Den #161 - Don't Panic
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!There's panic and fear in the streets as Bitcoin continues to correct. Analysts are already throwing out lower price targets, with reasonable ideas in the mid 20,000s, slightly less likely targets around 20,000 and ludicrous targets below 10,000.As you know, Bitcoin corrections are common, if not expected in any bull run. Everything that has happened so far is completely normal, although price is starting to flirt with action that could lead to a deeper (and somewhat healthier) correction.What is important in times like this is to take a deep breath and remember why you are here. Perhaps you are stressed as a trader if you entered at higher price and are close to hitting your stop loss or being liquidated (which should never be an option). Perhaps you are stressed if you are a brand new investor who bought the top out of pure FOMO.Most of us have been here before and know that this is normal. Breaking 42K again is not a matter of if, but when, in my mind. When you zoom out and take the fundamentals into consideration, nothing has changed. We are just getting started. You just have to remain calm and patient and sit on your hands, avoiding any bad impulsive decisions because your portfolio is down significantly this week.Even as traders, we are investors first. And investors don't react to small time frame moves, unless they are buying the dip. They are never selling at moments like these, even if they think it's likely that price will continue to drop. Attempting to buy and sell at the perfect moments is a fool's errand if your goal is to still be invested for years. This price action will be a momentary blip on the monthly chart. Selling now to try to "buy lower" may be possible, but is more likely to leave you on the sidelines when price reverses, looking for a higher entry.Further, if you are looking to take profit, you take it when the market is up, not when it is down. I took quite a bit of heat for selling Bitcoin around 40K (and some even lower) and for taking profit from my other positions over the past couple of weeks. As a result of those decisions, I feel less stress on the drop and have more options for reentering the market and making more Bitcoin, even though that's not what I was looking to do when I sold. I only took profit because I needed to rebalance, being far too overexposed to crypto as a percentage of my overall portfolio. I did not sell because I was afraid of a drop or because I did not believe price would continue higher. Selling is a part of the game, and something that I try to do frequently to realize gains and an income from trading.I am doing another livestream today at 2 PM EST to talk through Bitcoin price action, what I am looking for and seeing on the charts. Should be a good time! Join me: https://youtu.be/h2q10Z8sPhYIn This Issue:Bitcoin Thoughts And AnalysisChart RequestsBlackRock Is Looking To BitcoinFinCEN’s Harmful Crypto Regulation Is FrozenLearn About Bitcoin From Gary GenslerThe Wolf Of All Streets Podcast Ft. Ryan SelkisMy Recommended Platforms And Tools