My Plan Going Forward
Updated
If you are like me, it's very difficult to decide how to proceed after we hit -85% from 20K bitcoin. That's a point where we bottomed in previous crashes. Earlier in the crash it was easier, all cash, short the pumps and maybe try on some temporary longs after we dumped hard.
I usually trade trends, using heikin ashi, macd, etc on daily timeframes to ride as much of the swing as I can. Fibs are good for finding targets and invalidation points as well. This will usually keep you on the right side of the trade, especially if you keep sensible stop losses.
Now that the bottom might or might not be in, here's how I'm playing it:
1. Cautiously buy dips, put into cold storage. Don't worry about where I bought after that.
2. No longer sell pumps unless we are very overbought. I'm using the Mayer Multiple and NVT to measure this.
3. Have a small 'mad money' trading account that I can use to short and try out new strategies. ETH has been a dream to short so far. Hopefully it will be just as good to long.
4. Compare the results of my investment portfolio to my 'mad money' account.
Some coins I'm looking at holding:
1. BTC
2. BNB
3. XMR
4. AGI
5. LINK
6. ZEC
7. DGD
8. XTZ
9. SLT
10. SWM
I usually trade trends, using heikin ashi, macd, etc on daily timeframes to ride as much of the swing as I can. Fibs are good for finding targets and invalidation points as well. This will usually keep you on the right side of the trade, especially if you keep sensible stop losses.
Now that the bottom might or might not be in, here's how I'm playing it:
1. Cautiously buy dips, put into cold storage. Don't worry about where I bought after that.
2. No longer sell pumps unless we are very overbought. I'm using the Mayer Multiple and NVT to measure this.
3. Have a small 'mad money' trading account that I can use to short and try out new strategies. ETH has been a dream to short so far. Hopefully it will be just as good to long.
4. Compare the results of my investment portfolio to my 'mad money' account.
Some coins I'm looking at holding:
1. BTC
2. BNB
3. XMR
4. AGI
5. LINK
6. ZEC
7. DGD
8. XTZ
9. SLT
10. SWM
Trade active
Well, ETH has been a bit disappointing compared to BTC. My trading system that worked well during the bear market hasn't served me very well on this uptrend. Will have to reflect on what's changed and how to adjust. Having a trading account separate from an investment account has been a blessing, because when I screw up trades, usually shorting when we're bullish, I've still got my spot position gaining value. Don't know about you all, but I think things are about to get even more interesting and fun...
Note
Wow, what a run so far! Way beyond what I expected, and I learned some valuable lessons about being as aggressive going long as I have been going short up to now. With Bitcoin stealing the show so far, is it ETH's turn next? If so, I'm not going to be as conservative as I was with this Bitcoin run...Note
ETH is finally showing some strength! 2x until Bitcoin reaches all time high, but still about 5x for Ethereum...I started my crypto journey at the end of the parabola in Dec 17, so I learned to short first. It's such a great feeling to be able to go long with the same confidence!
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