The Wolf Den #47 - Bitcoin, Charts, Fear & Greed And More
thewolfden.substack.com
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage - this is where I have been able to short LINK. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Time in the market beats timing the market.There is a reason that generational wealth has historically been accumulated by investing money early and often. As I often say, the best way to make money is to put away money you don't need when you are young and forget about it until you are old. It's really that simple.Timing the market is a fools errand as an investor, which is being proven at the moment. What fundamental or technical element explains what is happening? I "missed" the opportunity to buy near the "bottom" of the stock market as a trader but that does not bother me. Why? Because I have NEVER strayed from my investing strategy - I continue to blindly buy SPY, AMAZON and select retirement targeted mutual funds. I bought the dip unintentionally because I am on autopilot, while my rational mind has been befuddled by the economy and price action.This is a reminder as to why a key aspect of risk management is portfolio balance. I ONLY TRADE with 15% of my accounts. 70% is investments, 15% is cash. And I keep my crypto portfolio separate from my equities and other investments, with the same breakdown.So even if I am continually wrong on trades, I am not exposed to major losses overall. Even if I "lose everything" that I am trading with, it's only 15%. That's how I feel comfortable, and that's how conventional wisdom has said to manage a trading portfolio for ages. Traders rarely beat investors. As far as equities go, I am still short BRK.B, Boeing and SPY. The latter two are slightly underwater, as I added a bit to SPY yesterday which is in profit. Berkshire is still in really nice profit. Amazon (I did not trade it) was the one potential trade I posted on Tuesday for a long, and that is up almost $100. Speaking of the economy, I will continue to update the unemployment numbers on a regular basis, since they are released on Thursday morning at 8:30 AM EST. 3.84 million more people filed for unemployment this week, bringing the total to over 30 million people. Yes, the number dropped week over week - but it's important not to be desensitized by these numbers (or COVID deaths for that matter). This is still a historically huge number, more than ever in the past by many multiples. The market is doing what the market is doing - that does not mean that the economy looks good.The chart requests took me a very long time this week, which is why the newsletter is a bit "shorter." By the time I am done looking at so many charts, they have often changed! A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What’s in this issue?Bitcoin Thoughts And AnalysisThe Wolf Of All Streets Podcast Ft. Dr. Richard MelkerStablecoin MadnessFear And Greed IndexBest Bitcoin Threads ContinuedAltcoinsChart Requests
The Wolf Den #47 - Bitcoin, Charts, Fear & Greed And More
The Wolf Den #47 - Bitcoin, Charts, Fear …
The Wolf Den #47 - Bitcoin, Charts, Fear & Greed And More
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage - this is where I have been able to short LINK. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Time in the market beats timing the market.There is a reason that generational wealth has historically been accumulated by investing money early and often. As I often say, the best way to make money is to put away money you don't need when you are young and forget about it until you are old. It's really that simple.Timing the market is a fools errand as an investor, which is being proven at the moment. What fundamental or technical element explains what is happening? I "missed" the opportunity to buy near the "bottom" of the stock market as a trader but that does not bother me. Why? Because I have NEVER strayed from my investing strategy - I continue to blindly buy SPY, AMAZON and select retirement targeted mutual funds. I bought the dip unintentionally because I am on autopilot, while my rational mind has been befuddled by the economy and price action.This is a reminder as to why a key aspect of risk management is portfolio balance. I ONLY TRADE with 15% of my accounts. 70% is investments, 15% is cash. And I keep my crypto portfolio separate from my equities and other investments, with the same breakdown.So even if I am continually wrong on trades, I am not exposed to major losses overall. Even if I "lose everything" that I am trading with, it's only 15%. That's how I feel comfortable, and that's how conventional wisdom has said to manage a trading portfolio for ages. Traders rarely beat investors. As far as equities go, I am still short BRK.B, Boeing and SPY. The latter two are slightly underwater, as I added a bit to SPY yesterday which is in profit. Berkshire is still in really nice profit. Amazon (I did not trade it) was the one potential trade I posted on Tuesday for a long, and that is up almost $100. Speaking of the economy, I will continue to update the unemployment numbers on a regular basis, since they are released on Thursday morning at 8:30 AM EST. 3.84 million more people filed for unemployment this week, bringing the total to over 30 million people. Yes, the number dropped week over week - but it's important not to be desensitized by these numbers (or COVID deaths for that matter). This is still a historically huge number, more than ever in the past by many multiples. The market is doing what the market is doing - that does not mean that the economy looks good.The chart requests took me a very long time this week, which is why the newsletter is a bit "shorter." By the time I am done looking at so many charts, they have often changed! A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What’s in this issue?Bitcoin Thoughts And AnalysisThe Wolf Of All Streets Podcast Ft. Dr. Richard MelkerStablecoin MadnessFear And Greed IndexBest Bitcoin Threads ContinuedAltcoinsChart Requests