FOR ANYONE WHO'S NOT SEEN THIS $BTC
Here's Michael Saylor $MSTR discussing what to look for if you're investing in $BTC Bitcoin Miners:
$CLSK $MARA $HUT $CIFR $RIOT
I do this EVERY SINGLE FUCKING DAY
It's simple. Be patient and then strike when your volume analysis lines up correctly
Watch this 2 min video to learn about it. Lazy mfers won't watch it. Outwork em & steal their money tomorrow
Position Sizing, Leverage, and Risk
I'm going to teach you every concept you need to keep the money you make in a crypto bull market.
Please read this carefully.
1. Total Risk
This is the total loss you will allow before you stop trading with a strategy.
In my first bull market in 2017 I went
$500 --> $1.2mil --> $800k
I was lucky and a mediocre trader but I had a cut off point and that let me keep my profits.
Are you okay with losing 30% of your capital? What about 50%?
Know your risk tolerance before you start trading.
2. Risk Per Trade
Lot’s of misconceptions about this.
Low Risk: 0.5%
Medium Risk: 1%-1.5%
High Risk: 1.5%-2%
Very High Risk: 2%-3%
Degen territory: 3%-5%
Gambling: 5%+
Lower than you thought right?
If you’re trading for 3+ years, at some point you WILL lose 10 trades in a row.
At 5% risk that’s ~50% of your portfolio…
When you understand what it takes to recover from drawdowns you realise this is completely unacceptable.
This requires a lot of self-control in the bull market, often it means I make less money than other people.
But I keep what I make at the end.
3. Position Sizing
To size your positions you need to know 3 things.
Your account size, your risk per trade and the distance of your stop loss.
Position size = (account size * risk per trade) / (distance to stop loss)
See the below example
Position Size Cheat Sheet
Position size = (account size * risk per trade) / (distance to stop loss)
If account size is $10000
Risk per trade is 1%
Distance to stop loss is 10%
Position size = (10000*1%)/(10%) = $1000
4. Leverage
Leverage is very misunderstood. It's an essential tool for crypto traders.
Leverage is a tool that can change the size of a position. That's it, use all the same calculations as above.
Here's an example:
If account size is $10000
Risk per trade is 1%
Distance to stop loss is 0.5%
Position size = (10000*1%)/(0.5%) = $20000
$20,000 is bigger than your total account size so you can use leverage to reach this.
And you know it's okay because your risk per trade is still 1%.
Once you understand this, you can start using leverage to keep less money on exchanges.
Instead of putting all your money on the exchange, keep it in cold storage and just use leverage.
PDF cheat sheet released on my telegram.
Link in bio --> @koroushak
2024….. Did you Buckle up?
BLOW-OFF TOP - later RECESSION and DEFLATIONARY BUST.
Extreme Euphoria will develop only to be replaced by extreme Fear. A lot of investors will lose a lot of money.
Bitcoin Thoughts
1. Key resistance $45k, breakout trade here.
2. Key support $40k, no trade here.
3. Buy dips below $40k. Even if this is the end of the bull market, we won't go down in a straight line. We can play bounces at key levels.
4. Dip levels I like are $36k and if we're really lucky $31k
p.s I'm bullish for 2024
1/5 Imo $ETH is WAY overvalued (risky) at 282 BILLION $ mrktcp vs $Dot = tiny 9B 🤯. The market is so distorted w/ the reality. Eth should be losing marketshare & could fall off a cliff🩸📉Here eth’s core dev, Gavin Wood, states it’s nothing more than ‘a Demo,’ not final solution
What time frame should you trade?
Learn from my mistakes and wins trading crypto for the last 7 years.
Here's my journey;
1. Intraday Trade Everything
I started on 5/15 minute charts and developed my first strategy.
Something you need to understand about me, I love intensity.
It's why I was addicted to video games and it's why I got addicted to lower time frame trading.
My first strategy had a high win rate and was making $500-$1000+ per trade.
The problem was the trades could happen at any time. This included 5/6 times at night.
My addictive personality decided to sacrifice sleep.
Developed chronic insomnia.
Chronic fatigue, mood swings, reduced cognitive ability, slow recovery...
Took 2 years to fix and still not the same.
Promised to never trade health for money again.
2. Day Trading Altcoins
The trading style changed.
I set alerts to only trade when volume and volatility met my requirements.
Usually altcoins on Binance.
Fewer opportunities but much more sustainable.
Problem with this phase
- Made less money overall
- Liquidity issues because my system needed high volume and high volatility altcoins to work
Wanted to grow but wasn't sure how.
3. Trading Majors and Select Altcoins
This is my current style of trading.
$BTC, $ETH and select altcoins when the opportunity comes.
- I focus on timing
- Multiple points of confluence; fundamentals, news, technical, social media narratives
- Patience and conviction
This helped me make big bets early e.g $LINK $SOL $MATIC and many others.
So what timeframe should you trade?
If you're new, pick the lower timeframes so you can get experience faster.
I even recommend the one minute chart.
If you're experienced it depends on your lifestyle, personality, edge and goals.
Hopefully, my story helps you decide what's right for you.
JUST IN:
APPLE GETS 36% OF GOOGLE REVENUE FROM SEARCH DEAL, WITNESS SAYS
Google $GOOGL pays Apple $AAPL 36% of the revenue it earns from search advertising made through the Safari browser, the main economics expert for the Alphabet unit said Monday - Bloomberg