The Wolf Den #73 - Alt Season, Bitcoin Shaky, News And More
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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. 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!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin.Alt Season.Everybody maintains their own definition of alt season, some insisting that it requires 2017 levels of coin pumps, with 10x trades happening on a daily basis. Others believe that an alt season occurs anytime that alts are clearly safe to trade and are consistently profitable.I am in the latter camp and believe that it has been alt season for the better part of this year. The trades that we have shared together are evidence of this, and definitively prove that consistent gains and base hits can grow your portfolio tremendously in a short period of time. These base hits are compounded by a few home runs and grand slams that really send your earnings into the stratosphere.We are presently in an alt season by any metric - Bitcoin Dominance is breaking down and dropping, Altcoin marketcap is breaking out and rising (discussed below), Ethereum is breaking out (often viewed as the canary in the coal mine), DOGE is pumping (many see this as the definition of alt season), Bitcoin is trading sideways and coins are popping left and right. We have checked every box. While my altcoin exposure was increasing for months and was up to 40% a few weeks ago, I am now over 50% in alts over my total portfolio. This means that I have taken Bitcoin slowly out of cold storage and started using it to trade.Risk management is not just about placing stop losses and only losing 1% on a trade. It’s also about knowing when to trade heavy and when to sit on the sidelines. Increasing my trading stack and exposure to altcoins has already been wildly profitable, so I can't lose. This will come to an end when my stop losses start firing across the board - until then, I will strike while the iron is hot. We may not be able to trade alts like this again for years, you never know. I certainly have not traded this aggressively since late 2017.There WILL BE BAD DAYS for alts, even if alt season continues. When Bitcoin sneezes, setups will fail. That is actually happening a bit today. Dominance tends to bounce when Bitcoin moves. Alt season does not mean that every coin is moving all the time. This is no time to get emotional and start FOMOing into everything that you see on Twitter. People forget that, even during a peak alt season, it is very easy to lose money by flipping too quickly, not waiting for a setup to play out, or buying the end of massive pumps. This is especially true if you are trading with limited funds and do not have available Bitcoin to take more than 1-2 setups at a time. Remain calm, watch specific setups and let them play out. Have a plan. It is VERY hard to watch the coin you are holding do nothing while other people are celebrating massive gains on other coins that you "could have been in." Do not view the market that way. What is happening elsewhere is irrelevant. Choose your horses to bet on and let them run their race.I will do my part to share solid potential trades, so that we can catch them early, as we have with many coins. Only trade them if the setup makes sense for you. I am actually making an effort to share LESS so as not to overwhelm you. Everything I shared on Tuesday and last week is up - there are a lot of opportunities for profit. BAND and DOGE have been two of the 4 biggest movers on Binance in the past 48 hours. I have been buying HOT for months and shared that - it FINALLY moved yesterday. BTT is breaking out.Choose your horses.My advice if you are actively trading alts is to ALWAYS scale out. Never put yourself in a situation where your entire position is riding on a single, emotional decision about taking profit - "SHOULD I SELL NOW OR WAIT FOR THE MOON!?" DOGE is a great example (I really hope you all caught this!) I had sell orders at the range high (44, I believe) and then scaled up into the low 100s. I have already sold 1/3 of my position on sell orders that were set right when I bought. If it drops now, I will have made money no matter what. Scaling out of (and into) positions removes a lot of the emotion - you get the satisfaction of taking profit, without the regret of selling too early. It's the best of both worlds.Alt season will end and you do not want to be left holding the bag. Don't go from being a trader to a community member or investor. Keep the risk management tight, use stop losses, and accept your losses when they come. You could take a bunch of trades today, it could end, and you could have to accept the loss and move on.DO NOT FOMO.Side note - gold and silver have continued to absolutely go crazy on the setups that I have shared here. Huge gains for those who have been riding them.Another side note - the Supreme Court just ruled that New York could potentially gain access to Trump's tax returns. This could definitely spook the market. 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. Isaiah JacksonThe 6 Stages Of A TraderMoney Printing 101 By Sahil BloomIs Reopening Enough To Save The Economy?Altcoin Market CapAltcoin TradesIs The US In A Housing Bubble?Coinbase Is Going PublicMy Recommended Platforms And ToolsChart Requests
The Wolf Den #73 - Alt Season, Bitcoin Shaky, News And More
The Wolf Den #73 - Alt Season, Bitcoin Shaky…
The Wolf Den #73 - Alt Season, Bitcoin Shaky, News 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. 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!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin.Alt Season.Everybody maintains their own definition of alt season, some insisting that it requires 2017 levels of coin pumps, with 10x trades happening on a daily basis. Others believe that an alt season occurs anytime that alts are clearly safe to trade and are consistently profitable.I am in the latter camp and believe that it has been alt season for the better part of this year. The trades that we have shared together are evidence of this, and definitively prove that consistent gains and base hits can grow your portfolio tremendously in a short period of time. These base hits are compounded by a few home runs and grand slams that really send your earnings into the stratosphere.We are presently in an alt season by any metric - Bitcoin Dominance is breaking down and dropping, Altcoin marketcap is breaking out and rising (discussed below), Ethereum is breaking out (often viewed as the canary in the coal mine), DOGE is pumping (many see this as the definition of alt season), Bitcoin is trading sideways and coins are popping left and right. We have checked every box. While my altcoin exposure was increasing for months and was up to 40% a few weeks ago, I am now over 50% in alts over my total portfolio. This means that I have taken Bitcoin slowly out of cold storage and started using it to trade.Risk management is not just about placing stop losses and only losing 1% on a trade. It’s also about knowing when to trade heavy and when to sit on the sidelines. Increasing my trading stack and exposure to altcoins has already been wildly profitable, so I can't lose. This will come to an end when my stop losses start firing across the board - until then, I will strike while the iron is hot. We may not be able to trade alts like this again for years, you never know. I certainly have not traded this aggressively since late 2017.There WILL BE BAD DAYS for alts, even if alt season continues. When Bitcoin sneezes, setups will fail. That is actually happening a bit today. Dominance tends to bounce when Bitcoin moves. Alt season does not mean that every coin is moving all the time. This is no time to get emotional and start FOMOing into everything that you see on Twitter. People forget that, even during a peak alt season, it is very easy to lose money by flipping too quickly, not waiting for a setup to play out, or buying the end of massive pumps. This is especially true if you are trading with limited funds and do not have available Bitcoin to take more than 1-2 setups at a time. Remain calm, watch specific setups and let them play out. Have a plan. It is VERY hard to watch the coin you are holding do nothing while other people are celebrating massive gains on other coins that you "could have been in." Do not view the market that way. What is happening elsewhere is irrelevant. Choose your horses to bet on and let them run their race.I will do my part to share solid potential trades, so that we can catch them early, as we have with many coins. Only trade them if the setup makes sense for you. I am actually making an effort to share LESS so as not to overwhelm you. Everything I shared on Tuesday and last week is up - there are a lot of opportunities for profit. BAND and DOGE have been two of the 4 biggest movers on Binance in the past 48 hours. I have been buying HOT for months and shared that - it FINALLY moved yesterday. BTT is breaking out.Choose your horses.My advice if you are actively trading alts is to ALWAYS scale out. Never put yourself in a situation where your entire position is riding on a single, emotional decision about taking profit - "SHOULD I SELL NOW OR WAIT FOR THE MOON!?" DOGE is a great example (I really hope you all caught this!) I had sell orders at the range high (44, I believe) and then scaled up into the low 100s. I have already sold 1/3 of my position on sell orders that were set right when I bought. If it drops now, I will have made money no matter what. Scaling out of (and into) positions removes a lot of the emotion - you get the satisfaction of taking profit, without the regret of selling too early. It's the best of both worlds.Alt season will end and you do not want to be left holding the bag. Don't go from being a trader to a community member or investor. Keep the risk management tight, use stop losses, and accept your losses when they come. You could take a bunch of trades today, it could end, and you could have to accept the loss and move on.DO NOT FOMO.Side note - gold and silver have continued to absolutely go crazy on the setups that I have shared here. Huge gains for those who have been riding them.Another side note - the Supreme Court just ruled that New York could potentially gain access to Trump's tax returns. This could definitely spook the market. 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. Isaiah JacksonThe 6 Stages Of A TraderMoney Printing 101 By Sahil BloomIs Reopening Enough To Save The Economy?Altcoin Market CapAltcoin TradesIs The US In A Housing Bubble?Coinbase Is Going PublicMy Recommended Platforms And ToolsChart Requests