This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COThe phrase “catch a falling knife” describes the attempt by a trader to buy a dropping asset at or near its low point of a significant move. This often occurs when someone is trying to make up for a loss caused by a large move, in an effort to average down at the lowest point and ride the asset back up. It is unwise to attempt perfectly timing the bottom and far safer to wait for confirmation in the form of a resistance to support flip or a bullish divergence with an indicator. Some also use confluence with oversold conditions to help determine a likely bottom.The point is, simply buying on the way down without a reason and hoping to find the bottom is a losing strategy.Trading within a movement is far less risky than attempting to buy the bottom and sell the top. The meat of the profit that traders make is simply by selling higher than they buy - whether they buy the bottom or not. This usually happens somewhere in the middle of the entire movement.I think this lesson is hyper-relevant for the current market conditions. For investors, this is a rule they can largely ignore. You can dollar cost average and buy dips with a long time horizon. Traders, though, are probably tempted by some of the deep lows alts are currently at.The truth is, the market has yet to offer any major indication that the pain is over - there is indecision. This does not mean that prices will drop further - we could be at a bottom. What it means is that there's no compelling evidence either way, which means it's generally not an ideal place to trade.I will be livestreaming today at 2 PM EDT with 2 legendary friends - Big Cheds and Crypto Birb. You don't want to miss this one!https://www.youtube.com/watch?v=LDtcf4x3QfkIn This Issue:Catching Falling KnivesBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsJack Dorsey Can’t Stay Away From BitcoinParaguay’s “Bitcoin” Bill Isn’t Exactly About BitcoinCongressman Tom Emmer Is Proposing A Pro-Crypto BillMy Recommended Platforms And Tools
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The Wolf Den #287 - Catching Falling Knives
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COThe phrase “catch a falling knife” describes the attempt by a trader to buy a dropping asset at or near its low point of a significant move. This often occurs when someone is trying to make up for a loss caused by a large move, in an effort to average down at the lowest point and ride the asset back up. It is unwise to attempt perfectly timing the bottom and far safer to wait for confirmation in the form of a resistance to support flip or a bullish divergence with an indicator. Some also use confluence with oversold conditions to help determine a likely bottom.The point is, simply buying on the way down without a reason and hoping to find the bottom is a losing strategy.Trading within a movement is far less risky than attempting to buy the bottom and sell the top. The meat of the profit that traders make is simply by selling higher than they buy - whether they buy the bottom or not. This usually happens somewhere in the middle of the entire movement.I think this lesson is hyper-relevant for the current market conditions. For investors, this is a rule they can largely ignore. You can dollar cost average and buy dips with a long time horizon. Traders, though, are probably tempted by some of the deep lows alts are currently at.The truth is, the market has yet to offer any major indication that the pain is over - there is indecision. This does not mean that prices will drop further - we could be at a bottom. What it means is that there's no compelling evidence either way, which means it's generally not an ideal place to trade.I will be livestreaming today at 2 PM EDT with 2 legendary friends - Big Cheds and Crypto Birb. You don't want to miss this one!https://www.youtube.com/watch?v=LDtcf4x3QfkIn This Issue:Catching Falling KnivesBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsJack Dorsey Can’t Stay Away From BitcoinParaguay’s “Bitcoin” Bill Isn’t Exactly About BitcoinCongressman Tom Emmer Is Proposing A Pro-Crypto BillMy Recommended Platforms And Tools