During a sharp market drop, the easiest mistake to make is being “in a hurry to make your money back.”
So many people rush to open short positions, or rush to buy the dip to prove themselves right.
But in reality, shorts often get liquidated by a sudden upward wick, while dip buyers catch a falling knife.
I got out near the top before October 11 last year. Since then, my long-term views on the macroeconomy, the economy, and geopolitics have been bearish.
I completely missed the extremely painful short squeeze we saw recently.
With 98% of my holdings in U, I watched the price of U fall and thought about buying some futures contracts to hedge. Since I was bearish on the market, I just couldn't bring myself to open a long position.
In the end, as everyone knows, we got an extremely intense short squeeze and prices just kept rising. My futures position got stuck, even though the funds in those contracts accounted for only a few percent of my total capital.
But that kind of extreme market action made me especially anxious and doubtful of myself. To fight that anxiety, I used a few percent of my capital to trade short-term.
The profits from spot trading eventually made up for the losses on the futures contracts. But I didn't just hold those contracts indefinitely either—I hedged some of the risk with a half-sized position. I also made back some of the losses with long positions.
I'm not saying all this to predict what the market will definitely do next. Everyone has their own trading logic. But when the market doesn't move in the direction you expected,
the first thing to do isn't rush to buy the dip or make a bunch of impulsive trades. Instead, take a moment to calm down and ask yourself what your original reason was for buying that coin or opening that position.
When the market moves against you, how should you manage the situation?
During this stretch, I too spent many nights questioning myself over and over. In the end, I stuck to one principle: better to miss an opportunity than make the wrong move.
Right now, the ETH whale's $250 million long position is like a ticking time bomb, and could trigger a cascade of liquidations at any moment.
At these levels, shorting risks getting liquidated by a sudden upward wick, while blindly buying the dip could mean catching a falling knife.
My strategy is simple: place limit orders to buy 5% in spot between 81,300 and 82,000, and 15% between 75,000 and 79,000.
Don't bet on a direction just because the market has plunged. Learn to forgive yourself for feeling lost in a choppy market. Stay in the game—that's the only way you'll be ready for the next real cycle.$MET $ZEUS #XRP现货ETF持仓17亿美元周流入放缓 #以太坊现货ETF单日净流出1.61亿美元
So many people rush to open short positions, or rush to buy the dip to prove themselves right.
But in reality, shorts often get liquidated by a sudden upward wick, while dip buyers catch a falling knife.
I got out near the top before October 11 last year. Since then, my long-term views on the macroeconomy, the economy, and geopolitics have been bearish.
I completely missed the extremely painful short squeeze we saw recently.
With 98% of my holdings in U, I watched the price of U fall and thought about buying some futures contracts to hedge. Since I was bearish on the market, I just couldn't bring myself to open a long position.
In the end, as everyone knows, we got an extremely intense short squeeze and prices just kept rising. My futures position got stuck, even though the funds in those contracts accounted for only a few percent of my total capital.
But that kind of extreme market action made me especially anxious and doubtful of myself. To fight that anxiety, I used a few percent of my capital to trade short-term.
The profits from spot trading eventually made up for the losses on the futures contracts. But I didn't just hold those contracts indefinitely either—I hedged some of the risk with a half-sized position. I also made back some of the losses with long positions.
I'm not saying all this to predict what the market will definitely do next. Everyone has their own trading logic. But when the market doesn't move in the direction you expected,
the first thing to do isn't rush to buy the dip or make a bunch of impulsive trades. Instead, take a moment to calm down and ask yourself what your original reason was for buying that coin or opening that position.
When the market moves against you, how should you manage the situation?
During this stretch, I too spent many nights questioning myself over and over. In the end, I stuck to one principle: better to miss an opportunity than make the wrong move.
Right now, the ETH whale's $250 million long position is like a ticking time bomb, and could trigger a cascade of liquidations at any moment.
At these levels, shorting risks getting liquidated by a sudden upward wick, while blindly buying the dip could mean catching a falling knife.
My strategy is simple: place limit orders to buy 5% in spot between 81,300 and 82,000, and 15% between 75,000 and 79,000.
Don't bet on a direction just because the market has plunged. Learn to forgive yourself for feeling lost in a choppy market. Stay in the game—that's the only way you'll be ready for the next real cycle.$MET $ZEUS #XRP现货ETF持仓17亿美元周流入放缓 #以太坊现货ETF单日净流出1.61亿美元