In this round of stretching,
the ones leading the charge are not BTC and ETH,
but ZEC, UNI, HYPE, SOL, BCH—these second-tier coins.
And whether all those second-tier coins need a pullback, and how much of a pullback,
all of it still depends on BTC’s mood.
Except for altcoins—most altcoins basically follow BTC’s up-and-down moves as well,
but the magnitude is determined by the market maker’s mood.
Actually today, I had some very good profitable trades in my hands,
and I was really hesitant.
Hesitant about whether to take profit and lock it in,
hesitant about whether to stay put.
But after the huge selloff following the previous surge (8/22),
it still left me with lingering unease.
Although in my last post I also said that,
until BTC manages to print a new high on the daily timeframe,
it’s hard for BTC to have a decent pullback,
but BCH this little troublemaker dropped the chain.
So around near midday,
I basically cleared out all the profitable trades I had,
then left only a small portion.
After that, in the afternoon, seeing that the big pie and Ethereum weren’t really moving,
I opened back some positions.
That’s just how people are:
once your position is closed,
your cost basis line rises.
But if you stack it with the previously profitable trades,
we can actually avoid thinking about it that way—we can imagine that our effective cost is still far below.
However, people can’t treat the money they’ve already locked in as unrealized P&L.
So once you open a new trade at a high level,
it becomes very hard to hold on.
That makes it difficult to set a good stop-loss,
and it also makes it easy to get stopped out.
Maybe that’s why being a trader is so difficult.
Always thinking you need to avoid every pullback,
and at the same time thinking you need to capture every upside move.
Hard.
Too hard.
$BTC
the ones leading the charge are not BTC and ETH,
but ZEC, UNI, HYPE, SOL, BCH—these second-tier coins.
And whether all those second-tier coins need a pullback, and how much of a pullback,
all of it still depends on BTC’s mood.
Except for altcoins—most altcoins basically follow BTC’s up-and-down moves as well,
but the magnitude is determined by the market maker’s mood.
Actually today, I had some very good profitable trades in my hands,
and I was really hesitant.
Hesitant about whether to take profit and lock it in,
hesitant about whether to stay put.
But after the huge selloff following the previous surge (8/22),
it still left me with lingering unease.
Although in my last post I also said that,
until BTC manages to print a new high on the daily timeframe,
it’s hard for BTC to have a decent pullback,
but BCH this little troublemaker dropped the chain.
So around near midday,
I basically cleared out all the profitable trades I had,
then left only a small portion.
After that, in the afternoon, seeing that the big pie and Ethereum weren’t really moving,
I opened back some positions.
That’s just how people are:
once your position is closed,
your cost basis line rises.
But if you stack it with the previously profitable trades,
we can actually avoid thinking about it that way—we can imagine that our effective cost is still far below.
However, people can’t treat the money they’ve already locked in as unrealized P&L.
So once you open a new trade at a high level,
it becomes very hard to hold on.
That makes it difficult to set a good stop-loss,
and it also makes it easy to get stopped out.
Maybe that’s why being a trader is so difficult.
Always thinking you need to avoid every pullback,
and at the same time thinking you need to capture every upside move.
Hard.
Too hard.
$BTC