The Wolf Den #402 - Stacking Is The Name Of The Game
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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 - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionI have discussed this a number of times in the past, but it feels particularly relevant now - alt season comes in waves. Most people trade this market with the intention of stacking sats - moving in and out of altcoins to make more Bitcoin. Many people actually lost Bitcoin (probably made dollars) trading alts this year, because they failed to exit their coins when Bitcoin made a significant move, giving back all of their gains before the next wave. I have learned this lesson the hard way, which is why I ALWAYS use stops when available or size my position on DEXs so that the coin can go to 0 and I only lose 1% of my portfolio.. The name of the game is trading alts when Bitcoin is sideways, and then getting back into Bitcoin when it moves - then back to alts when it chills once again. That’s how you compound your Bitcoin and alt stacks. This is JUST FOR TRADERS looking to compound Bitcoin. If you are an investor, this is completely irrelevant - you are not looking to make quick moves in and out of coins. Many people in 2017 who thought they made a ton of money trading alts would have been better off sitting in Bitcoin. This is the core reason that I generally do NOT trade alts against USD when a BTC pair is available. With DEXs, this has changed quite a bit, because ETH and USDT have become the main peg for a lot of traders and US traders often do not have access to coins with BTC pairs on centralized exchanges. That said, there are almost no situations where trading an alt against USD is better than sitting in Bitcoin. A lot of people “break-even” on their alts in USD, not realizing that they are seeing a dramatic hit to their Bitcoin stack. We are here to stack sats and then let Bitcoin do the heavy lifting for making us more dollars. That is the unique value proposition of the crypto market. We can trade alts to get Bitcoin, an asset that itself is bullish and rises over time. Imagine if you could have traded penny stocks over the past 10 years to get more Amazon stock? It’s similar.My strategy with trading alts, and trading in general, is to push very hard when the opportunity presents itself. An overlooked aspect of risk management is knowing when to go in heavily and when to sit on the sidelines. I like to keep trading until my trailing stops all hit in a wave, taking me back into Bitcoin and forcing me to reevaluate. This has worked like a charm in the past. Sometimes I am at 60% alt exposure, 3-4X my normal amount, and sometimes 25%. Yes, I took some small losses and potentially missed some opportunities to take profit, but I largely avoided any major hits to my stack. If I can make gains 6 times and stop out of everything on the 7th round, I am happy. I never expect to buy the dead bottom or sell the dead top - I make most of my money from the price action in the middle.I had the same strategy shorting the stock market. Those of you who were with me during the heat of COVID will remember. I was shorting every single bounce from the very top and made a killing. I continued to short after the market bounced, with mixed results. My last round of shorts was largely unsuccessful and I got out of the way of the market for the majority of the bull run. The market decided for me when it was time to stop shorting. I never changed my investing strategy, so I was still dollar cost averaging in at the bottom. Shorting as a trader, buying as an investor.This is how I approach trading - I like to strike while the iron is hot. It does not work for everyone and requires you to be early and to act with conviction when others are fearful. It also means that you have to start selling when others are finally jumping on the bandwagon.... and be willing to sit on your hands for long stretches.Buy fear, sell greed. Rinse, repeat.I have cut back on sharing charts for the time being. It would be irresponsible. Coins “may” be bottoming, or may drop massively again. There’s no way to tell and there is no way to identify setups after a significant drop. The prudent move is to wait and see how things shake out, let a bit of price action occur and then look for setups. I WILL NOT share trades with you when the market is shaky, no matter how badly you want them. If Bitcoin pumps hard again, it’s almost guaranteed that alts will see another leg down. If Bitcoin drops hard, it will likely be even worse.That said, if you are an alt “investor,” I could see buying at present levels - but you would have to be willing to hold at a major loss or average down if the price continues. Not my style, but if this is your style, lean into it and become really good at it.At the end of the day, the goal is to make money and that’s what I want to help you achieve. You have to find your own system and stick to it.Chart Request Live Stream at 1:30 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 12:30 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.REMINDER: I can only do so many charts on the livestream. My assistant picks 25 random requests from everyone’s submissions and those are the coins I chart.Chart Request FormIf you are a new member, please refer to THIS BLOG for instructions on how to make my charts your own.In This Issue:Stacking Is The Name Of The GameBitcoin Thoughts And AnalysisBlockworks Breaks Down The MarketRaoul Pal Addresses Market StagnationMarathon Buys $900M Worth Of MinersThe Power Of Dollar Cost AveragingDeFi Grew Massively In 2021My Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #402 - Stacking Is The Name Of The Game
The Wolf Den #402 - Stacking Is The Name Of…
The Wolf Den #402 - Stacking Is The Name Of The Game
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 - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionI have discussed this a number of times in the past, but it feels particularly relevant now - alt season comes in waves. Most people trade this market with the intention of stacking sats - moving in and out of altcoins to make more Bitcoin. Many people actually lost Bitcoin (probably made dollars) trading alts this year, because they failed to exit their coins when Bitcoin made a significant move, giving back all of their gains before the next wave. I have learned this lesson the hard way, which is why I ALWAYS use stops when available or size my position on DEXs so that the coin can go to 0 and I only lose 1% of my portfolio.. The name of the game is trading alts when Bitcoin is sideways, and then getting back into Bitcoin when it moves - then back to alts when it chills once again. That’s how you compound your Bitcoin and alt stacks. This is JUST FOR TRADERS looking to compound Bitcoin. If you are an investor, this is completely irrelevant - you are not looking to make quick moves in and out of coins. Many people in 2017 who thought they made a ton of money trading alts would have been better off sitting in Bitcoin. This is the core reason that I generally do NOT trade alts against USD when a BTC pair is available. With DEXs, this has changed quite a bit, because ETH and USDT have become the main peg for a lot of traders and US traders often do not have access to coins with BTC pairs on centralized exchanges. That said, there are almost no situations where trading an alt against USD is better than sitting in Bitcoin. A lot of people “break-even” on their alts in USD, not realizing that they are seeing a dramatic hit to their Bitcoin stack. We are here to stack sats and then let Bitcoin do the heavy lifting for making us more dollars. That is the unique value proposition of the crypto market. We can trade alts to get Bitcoin, an asset that itself is bullish and rises over time. Imagine if you could have traded penny stocks over the past 10 years to get more Amazon stock? It’s similar.My strategy with trading alts, and trading in general, is to push very hard when the opportunity presents itself. An overlooked aspect of risk management is knowing when to go in heavily and when to sit on the sidelines. I like to keep trading until my trailing stops all hit in a wave, taking me back into Bitcoin and forcing me to reevaluate. This has worked like a charm in the past. Sometimes I am at 60% alt exposure, 3-4X my normal amount, and sometimes 25%. Yes, I took some small losses and potentially missed some opportunities to take profit, but I largely avoided any major hits to my stack. If I can make gains 6 times and stop out of everything on the 7th round, I am happy. I never expect to buy the dead bottom or sell the dead top - I make most of my money from the price action in the middle.I had the same strategy shorting the stock market. Those of you who were with me during the heat of COVID will remember. I was shorting every single bounce from the very top and made a killing. I continued to short after the market bounced, with mixed results. My last round of shorts was largely unsuccessful and I got out of the way of the market for the majority of the bull run. The market decided for me when it was time to stop shorting. I never changed my investing strategy, so I was still dollar cost averaging in at the bottom. Shorting as a trader, buying as an investor.This is how I approach trading - I like to strike while the iron is hot. It does not work for everyone and requires you to be early and to act with conviction when others are fearful. It also means that you have to start selling when others are finally jumping on the bandwagon.... and be willing to sit on your hands for long stretches.Buy fear, sell greed. Rinse, repeat.I have cut back on sharing charts for the time being. It would be irresponsible. Coins “may” be bottoming, or may drop massively again. There’s no way to tell and there is no way to identify setups after a significant drop. The prudent move is to wait and see how things shake out, let a bit of price action occur and then look for setups. I WILL NOT share trades with you when the market is shaky, no matter how badly you want them. If Bitcoin pumps hard again, it’s almost guaranteed that alts will see another leg down. If Bitcoin drops hard, it will likely be even worse.That said, if you are an alt “investor,” I could see buying at present levels - but you would have to be willing to hold at a major loss or average down if the price continues. Not my style, but if this is your style, lean into it and become really good at it.At the end of the day, the goal is to make money and that’s what I want to help you achieve. You have to find your own system and stick to it.Chart Request Live Stream at 1:30 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 12:30 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.REMINDER: I can only do so many charts on the livestream. My assistant picks 25 random requests from everyone’s submissions and those are the coins I chart.Chart Request FormIf you are a new member, please refer to THIS BLOG for instructions on how to make my charts your own.In This Issue:Stacking Is The Name Of The GameBitcoin Thoughts And AnalysisBlockworks Breaks Down The MarketRaoul Pal Addresses Market StagnationMarathon Buys $900M Worth Of MinersThe Power Of Dollar Cost AveragingDeFi Grew Massively In 2021My Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO