Crypto Trading: Getting trapped in a trade.

avatar

It has been a while since I last posted an update on my trading. This post is quite timely though since it comes on the back of me going against one of my trading principles, not placing my entire capital in a single trade.

image.png

So, why did I end up breaking one of my most treasured trading guiding principles?

Well, after I offloaded a bunch of crypto assets for a healthy amount of money I ended up with slightly over $4000 left over for my day trading. Having left a massive hole in my bank balance from spending my earnings, I felt compelled to recover the money I had spent very quickly like your typical gambler trying to come back from back to back losses.

It went well for a few weeks and I quickly forgot about that the end of Q4 often ends in the red as people cash out their investments for their holiday pleasures. This year was no different and it caught me totally off guard.

My $4000+ bag of $RUNE took a massive dip from my buying price of around $11 all the way down to $6 dollars.

image.png

Under normal circumstances, I would have had part/half of my investment left over in stable currency in order to grab up some cheap $6 RUNE and most likely hedge the sideways market for some quick short term gains as the market recovers.

After all, that is how I managed to grow a small account of $300 to over $10,000 early 2021 at the height of the pandemic.

Fortunately, I only trade on the spot market. It is simply the best choice for people without a large amount of money to trade with. If this trade had margin it would have without a doubt ended up with the dreaded liquidation email.

However, this is another lesson learnt. It may be boring being bound by a particular set of trading principles, but they are there to help traders maintain a consistent uptrend on the PNL curve.

If anything, it reaffirms the skill of being patient.

Posted Using LeoFinance Beta



0
0
0.000
0 comments