Here is a very sad market to see… Portfolio values have fallen massively overnight and since the beginning of the month. We’re not going to lie to each other, making a profit with a market like this is complicated.
The alts lost almost 30% on average in 20 days, with the vast majority of the one outside the top 20 having lost more than 50% of their value.
For the newer ones, this kind of decrease could clearly scare you and make you think it’s time to leave the market. Actually, this kind of period is excellent to test your strategies, balance your wallet and make sure to accumulate values. Here are our tips for the hours and days to come:
Fear will make you make the wrong decisions. Easier said than done, but it is important to be able to distance yourself from your investments. Fear is the element that will make you buy at the top and sell at the fall. Trading is going against human nature. If we understand that, it is already a first step. Make decisions based on data, write your strategy when you take a position and follow that strategy!
Accumulate: it is a question here of accumulating Tokens. We are not talking about the USD value, but about increasing your total BTC, for example, in times of falling prices, to be able to benefit when prices rise. How do we do that? By scalping, for example. By looking at the supports and resistances, you can sell (when the support is broken) and buy back the next support. Then, if the price goes down, you sell again, and buy back the next support. So you should increase your number of BTC. Of course, your USD value should also decrease if you have not been able to take advantage of the waves, but in the medium term, this strategy well known and used by all professional traders will pay off when the market turns around.
Don’t think about making a profit at any price, money management is crucial and patience is important. This is why it is sometimes preferable to keep part of your capital off the market.
Do your own analysis and try to write down as much of what you see as you can to see if you were right. This is how we realized that the divergences we saw on BTC were confirmed in more than 9 cases out of 10, while the divergences on TRX had a much lower score.
What does a strategy look like?
It is a question of defining what are the entry criteria for a trade. This can be a rebound on support, a price level, etc.. The second step is the establishment of an exit strategy in case your trade moves in the right direction, an exit price level for example. You also need to know what to do in case our analysis does not confirm itself as establishing a stop-loss level.