We mention over and over the dangers of margin trading, especially at ridiculous levels like 25/1 or some even higher. We also mentioned we want to be positioned contrary to the herd. Well today many are waking up to their first lesson about risky trading and after bragging for weeks how much they are making shorting, are now in the red with gains erased and then some.
We will hear them blame the whales, talk about market manipulation, and how this should not have happened, but we have been mentioning over and over that the short interest was at all time highs and this is a perfect setup for a short squeeze. We positioned ourselves accordingly and the 1:1 R:R is now way into the money. This is where patience has paid off. Now we are not right on every call and the market has taken a different direction, but the difference is risk management.
If you are going to blame someone for getting REKT during the short squeeze, take a look in the mirror, and that is who you should be blaming. Taking unnecessary risks, trying to make a homerun where basehits win games is the reason your account is now zero. Sure we will hear the "ohhh i got out just before the pop" but I can tell you this is BS!
Technically we blew right through the 7480 level and are managing our current trades by reducing our ETH risk in half just hours before the pop. As our targets have been hit I am closing the BTC and other half of the ETH trade. 7480 is now the level that needs to hold, however, it can go as low as 7265 and still be a valid bullish move with extreme support at 7200. Right now it is risk off and wait for the market to stabilize, this is not the time to try and trade.
We have closed our BTC and ETH trades and shaved off half of the OMG positional trade. We did not sell any Wabi as this is a longer term hold and was trading at 90% below its high.
In closing patience has paid off in being positioned opposite the herd where when that moves happen it is painful.
We will hear them blame the whales, talk about market manipulation, and how this should not have happened, but we have been mentioning over and over that the short interest was at all time highs and this is a perfect setup for a short squeeze. We positioned ourselves accordingly and the 1:1 R:R is now way into the money. This is where patience has paid off. Now we are not right on every call and the market has taken a different direction, but the difference is risk management.
If you are going to blame someone for getting REKT during the short squeeze, take a look in the mirror, and that is who you should be blaming. Taking unnecessary risks, trying to make a homerun where basehits win games is the reason your account is now zero. Sure we will hear the "ohhh i got out just before the pop" but I can tell you this is BS!
Technically we blew right through the 7480 level and are managing our current trades by reducing our ETH risk in half just hours before the pop. As our targets have been hit I am closing the BTC and other half of the ETH trade. 7480 is now the level that needs to hold, however, it can go as low as 7265 and still be a valid bullish move with extreme support at 7200. Right now it is risk off and wait for the market to stabilize, this is not the time to try and trade.
We have closed our BTC and ETH trades and shaved off half of the OMG positional trade. We did not sell any Wabi as this is a longer term hold and was trading at 90% below its high.
In closing patience has paid off in being positioned opposite the herd where when that moves happen it is painful.
