Words of Encouragement For My Crypto Friends
I know many of you lost faith in cryptocurrency market because of the soul crushing market crash during this crypto winter. I’m not an expert but the points i will be driving across to you will be based on my experience during multiple bear and bull cycle trading cryptocurrencies 2020-2022.
1. Risk management: Leverage could either make you or break you.
2017 bull market word “leverage”, it became popular during 2018-2019 there’s no leverage trading/ futures contract trading on Binance it is only available in bitmex since a lot of people are looking to make money/profit during bear market.
In spite of substantial risk, we still lean towards on the promise of the leverage trading where “amplified profits, you put up a sum of money, then multiply that by your leverage. If you make money on the trade, you’ve made a whole lot of money.”
Pero in reality most of us ended up blowing up our entire personal account.
Like everything in the stock market, forex, and even in crypto, leverage is a double-edge sword.
Halos lahat ng nagleleverage trading are enticed with large multiplier dito papasok yung 100x to x125x, sino nga ba naman ang hindi mapapatingin sa 1,000% - 40,000% or more, right?
Yes that’s fine if you are managing your positions very well, pero If you’re not considering to lose your positions, I’d say you need to have concrete trading plan. With greater leverage comes with greater responsibility :)
By being responsible, it means:
a. You already have a clear objective in every trade that includes entries, exits, and stops.
b. You already have a fixed amount that you are willing to lose per trade. If you are going to lose $5 or $100 or more $$$, the point is stick to it. Because you can only improve what you can measure, and it is easy for us to compute the risk per trade (save time and energy).
c. Your goal in trading is to protect your account’s health. “Rome was not built in a day but Hiroshima and Nagasaki were destroyed in a day.”
The market moves in cycle, I think cryptocurrency won’t end on Nov 2022, so why on a rush?
2. Market Cycle: There are 4 popular market cycles for cryptocurrencies that I always teach my friends and students. I will mention it here so you don’t have to pay for it like they did.
a.Declining – Winter: Learn how to survive
The arrival of Crypto Winter finds us in one of two categories:
Either we are prepared or we are unprepared…
To those who are prepared, who have planted abundantly in the spring and invested in educating themselves (accumulation), protecting their profits and making sure they won’t give it back to the market distribution (uncertainty), and harvested massively during advancing (Bull market), winter can be yet another season of opportunity declining (bear market).
Crypto Winter always comes after the harvest of fall.
Do the personal inner work to stay strong and positive and don’t give up.
Know that bull market is always around the corner and if it does come, dapat nandyan ka and already positioned yourself and learn the skills to thrive in the future.
But before you start learning the skills, you have to do some work, reflect on the past. What obstacles prevented you from achieving your trading goals?
b. Accumulation – Window of opportunity:
Accumulation is the fresh air of new opportunity, it is the time for looking for potential cryptocurrencies or projects out there that could bring x2 - x1000.
This is also considered your window when you must take action and look for opportunity.
It’s the season when most of the investors will be busy and silently buying and acquiring in preparation for the next cycle.
c. Advancing - You reap what you sow
For those who have prepared during the accumulation, and who fought hard during the harsh times of uncertainty, advancing can bring rewards which give cause for rejoicing…
Yes you heard that right, THIS IS YOUR BIG BREAK.
For those who have prepared during the accumulation, good news crypto friends and crypto fam, this part of the cycle is the time for celebrations.
d. Distribution – Nourish and Protect:
Congratulations crypto friends and crypto fam, now you already have done the great job on making profits. I don't want to break the excitement but the reality is...
Of course walang forever...
The market doesn't move on a straight line. Investors and traders taking massive profit.
The market will enter the distribution stage where there will be a lot of uncertainty.
If you are still participating the market during this phase, BE DEFENSIVE ON YOUR EXPOSED POSITIONS, once the buyers are exhausted this is where we transition to the next crypto winter.
“History rhymes.” It “rhymes” because its most important events repeat, though never in exactly the same way. That is because, while the cause/effect relationships behind those events are timeless and universal, all things evolve and influence each other in different ways.”
- Ray Dalio, Founder of Bridge Water Associates
with $140B asset under management as of 2021
#TradeResponsibly
