The Wolf Den #79 - BTC Vs. USD, Website Launch, Sunday Newsletter
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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.I stopped out of almost all of my altcoin trades this weekend.Most of these trades were in profit. As a result of using stop losses and manually trailing stops, I mostly avoided the alt coin carnage yesterday, taking my losses early and before the real drop happened.I lost 2% of my stack on COMP, which is the max that I allow and was a result of adding more to the position on an earlier drop. Not a great trade, but within my limits of risk. I usually aim for no more than 1-1.5%.I stopped out even on LINK and XTZ after moving my stop loss up. I stopped out of POWR, SXP, XRP, DOGE and ENG in profit and am still in HOT, ERD, UTK and PNT. As you know by now, I almost always move my stops to my entry or into profit once I have the chance.I am in SNTVT and HXRO as investments, both of which I bought over the counter. I view part of my PNT and ERD stacks as long holds now too, since I am playing strictly with the profits. When I make multiple times my capital on a trade, I like to move 20% or so of the gains to my investment portfolio as an absolute moon shot. I have a ton of ETH in my investments portfolio that I did not touch during this move and have no intention of touching any time soon. I remain more bullish on ETH than BTC moving forward.I bought more ERD and PNT on the drop, in fact, assuming that they were bullish assets that were likely to see the biggest bounce. That is true thus far. I also bought DUSK, a coin with great buzz that I have been looking for an entry on. It got to a level that I did not expect, so I felt compelled to take a shot.I have discussed this a number of times and as recently as last week - alt season comes in waves. Many people actually lost bitcoin (probably made dollars) trading alts in 2017 at peak alt season, because they failed to exit alts when bitcoin moved, giving back all of their gains before the next wave. I learned this lesson the hard way, which is why I ALWAYS use stops. 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. 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. There are almost no situations where trading an alt against USD is better than sitting in bitcoin. A lot of people "broke even" yesterday on their alts in USD, not realizing that they were 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. As a result, I was trading alts heavily for the past 6 months while others were afraid. Many of them just called for "alt season" in the past week or two. 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 worked like a charm in the past few days. I was at 60% alt exposure, 3-4X my normal amount. After this weekend, I am around 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 in February, March and April 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 were 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.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.Buy fear, sell greed. Rinse, repeat.I am not sharing many alt charts today. It would be irresponsible. They "may" be bottoming, or may drop massively again. There's no way to tell and there is no way to identify setups after a drop that significant. The prudent move is to wait and see how things shake out, let a bit of price action occur and then look for setups. Right now it would be purely knife catching. I WILL NOT share trades with you when the market is wrong, no matter how badly you want them. If Bitcoin pumps hard again, it's almost guaranteed that alts will see another leg down. 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 price continues. Not my style. I am going to show you DUSK, because I chose to buy some yesterday. That said, I ALREADY EXITED half of that position as a quick and profitable scalp.As I mentioned last week, I have big plans for the future. We have some exciting things in the works at The Wolf Of All Streets, all designed to bring you more value. I’m not one to wait (patience is not my strong suit!), so the future starts now. On Sunday, we will be rolling out the first edition of a new weekly edition of this newsletter – The Weekly Howl. The Weekly Howl will summarize key analysis, podcasts, education, and more – arming you with the tools to make you a better trader and investor. This is just the first of many exciting rollouts to come, but we had to start somewhere. We hope you enjoy it.In other news, MY WEBSITE IS LAUNCHING THIS WEEK! Sorry for yelling, I am really excited. Everything on the website will be free. I will be providing more education, more news, more platform reviews etc. This will also be able to give you a better way to find some back content from the older newsletters that I feel can be shared publicly. This will make it far easier to find some of the old lessons without having to dig through old newsletters.What’s In This Issue…Bitcoin - Institutional Money Vs. RetailThe Dollar (DXY) And Bitcoin RevisitedCha-Cha Chats With CoinMarketCapVisa (And Mastercard) Advancing On CryptoVIX 101 By Sahil BloomLessons Learned From Working With Jeff BezosTime Is Money And Money Is TimeThe Wolf Of All Streets Podcast Ft. Zoran KoleBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsMy Recommended Platforms And Tools
The Wolf Den #79 - BTC Vs. USD, Website Launch, Sunday Newsletter
The Wolf Den #79 - BTC Vs. USD, Website…
The Wolf Den #79 - BTC Vs. USD, Website Launch, Sunday Newsletter
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.I stopped out of almost all of my altcoin trades this weekend.Most of these trades were in profit. As a result of using stop losses and manually trailing stops, I mostly avoided the alt coin carnage yesterday, taking my losses early and before the real drop happened.I lost 2% of my stack on COMP, which is the max that I allow and was a result of adding more to the position on an earlier drop. Not a great trade, but within my limits of risk. I usually aim for no more than 1-1.5%.I stopped out even on LINK and XTZ after moving my stop loss up. I stopped out of POWR, SXP, XRP, DOGE and ENG in profit and am still in HOT, ERD, UTK and PNT. As you know by now, I almost always move my stops to my entry or into profit once I have the chance.I am in SNTVT and HXRO as investments, both of which I bought over the counter. I view part of my PNT and ERD stacks as long holds now too, since I am playing strictly with the profits. When I make multiple times my capital on a trade, I like to move 20% or so of the gains to my investment portfolio as an absolute moon shot. I have a ton of ETH in my investments portfolio that I did not touch during this move and have no intention of touching any time soon. I remain more bullish on ETH than BTC moving forward.I bought more ERD and PNT on the drop, in fact, assuming that they were bullish assets that were likely to see the biggest bounce. That is true thus far. I also bought DUSK, a coin with great buzz that I have been looking for an entry on. It got to a level that I did not expect, so I felt compelled to take a shot.I have discussed this a number of times and as recently as last week - alt season comes in waves. Many people actually lost bitcoin (probably made dollars) trading alts in 2017 at peak alt season, because they failed to exit alts when bitcoin moved, giving back all of their gains before the next wave. I learned this lesson the hard way, which is why I ALWAYS use stops. 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. 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. There are almost no situations where trading an alt against USD is better than sitting in bitcoin. A lot of people "broke even" yesterday on their alts in USD, not realizing that they were 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. As a result, I was trading alts heavily for the past 6 months while others were afraid. Many of them just called for "alt season" in the past week or two. 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 worked like a charm in the past few days. I was at 60% alt exposure, 3-4X my normal amount. After this weekend, I am around 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 in February, March and April 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 were 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.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.Buy fear, sell greed. Rinse, repeat.I am not sharing many alt charts today. It would be irresponsible. They "may" be bottoming, or may drop massively again. There's no way to tell and there is no way to identify setups after a drop that significant. The prudent move is to wait and see how things shake out, let a bit of price action occur and then look for setups. Right now it would be purely knife catching. I WILL NOT share trades with you when the market is wrong, no matter how badly you want them. If Bitcoin pumps hard again, it's almost guaranteed that alts will see another leg down. 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 price continues. Not my style. I am going to show you DUSK, because I chose to buy some yesterday. That said, I ALREADY EXITED half of that position as a quick and profitable scalp.As I mentioned last week, I have big plans for the future. We have some exciting things in the works at The Wolf Of All Streets, all designed to bring you more value. I’m not one to wait (patience is not my strong suit!), so the future starts now. On Sunday, we will be rolling out the first edition of a new weekly edition of this newsletter – The Weekly Howl. The Weekly Howl will summarize key analysis, podcasts, education, and more – arming you with the tools to make you a better trader and investor. This is just the first of many exciting rollouts to come, but we had to start somewhere. We hope you enjoy it.In other news, MY WEBSITE IS LAUNCHING THIS WEEK! Sorry for yelling, I am really excited. Everything on the website will be free. I will be providing more education, more news, more platform reviews etc. This will also be able to give you a better way to find some back content from the older newsletters that I feel can be shared publicly. This will make it far easier to find some of the old lessons without having to dig through old newsletters.What’s In This Issue…Bitcoin - Institutional Money Vs. RetailThe Dollar (DXY) And Bitcoin RevisitedCha-Cha Chats With CoinMarketCapVisa (And Mastercard) Advancing On CryptoVIX 101 By Sahil BloomLessons Learned From Working With Jeff BezosTime Is Money And Money Is TimeThe Wolf Of All Streets Podcast Ft. Zoran KoleBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsMy Recommended Platforms And Tools