In recent days, waking up has been like Christmas morning, since I’d turn to my iPad when I first opened my eyes and see what happy news awaited me from crypto-land. This morning was more like a stocking full of coals. I present to you my SlopeAlerts account:
Clearly something terrible had happened.
Was I upset? Was I scared? Was I angry? Was I going to ask any more rhetorical questions? No. Because I always, always, always have stop-loss prices set at sensible, chart-based levels. I am not a HODL guy. Not even close. If I were, I’d probably had vastly more wealth than I do, but it simply isn’t my nature. I went to my home office to look at CryptoStream, and it was a sea of pink (it changes a line’s holding to pink when it’s beneath the stop-loss price). Every single position had been closed. Every one!
So I’m entirely in cash now. I can only pat myself on the back because last night I had acquired a huge (for me) Ethereum position but decided, thanks to our rainbow friend, that it was too high, so I took my profits. I left everything else in place, however, and the entire space went into a total free-fall.
I have not taken the time to go through my charts, and having nine band-aids suddenly ripped off, I’m not in a big rush to do so. I’m fine being in cash for now. I will point out that we could easily shave $5,000 or more from BTC at these prices, because we’ve cut below this support line and we’re still now at the bottom of our rainbow buddy.
It is disappointing seeing 25% of my profits vanish like this, but again, for me it’s all about risk control. While I slept, my stops did their job, which is why I was able to sleep in the first place.
