The Lesson Of The Day
Today I woke up to see that I got stopped out of the market and have a nice amount of USDT in my portfolio. At that moment I did not know what's caused the price drop and couldn't care less to be honest. My first concern was to see the charts, make a decision regarding the new entries and place my new orders in case it's time.
Having your stop losses set up and updated all the time has its advantages, that's why I was able to make a nice profit. It's not easy to update your stop losses every day, it is time consuming but it is a must if you want your investment protected.
What's Happened
After the big crash, the market finally started to normalize and after some consolidation, we got some results. Some of the alts started to rally. Unfortunately this morning all that ended and all the progress was erased.
When something happens, the market usually acts as the end of the world is near. This can be an event or caused by someone's tweet as we are experiencing lately. Millions are reacting to it, one way or another, but usually people get hurt. Panic selling happens, leverage traders get liquidated and losses are taken.
Some say Elon's tweet caused the market crash today. Elon is tweeting all the time, but not his tweets that are causing the market crash, but people who are panic selling. In fact it's irrelevant what caused the market drop. What matters is what you do before and after the crash.
The Lesson
Long term holders are fine. This is just a setback for them as the market is going to recover. If you plan to sell at 100K or around that region, you are not affected by this drop.
Having your stop losses set up correctly in time and updated regularly not only can save you from big losses, but can bring you some nice profits as well. Lucky me, last night I reviewed all my stop losses and this morning, when I woke up could see although I got stopped out of the market, still made some nice profits. Otherwise the profit would have been short lived only on paper, which can't be called a profit.
Buying at breakout and/or retest can also save you from trouble.
If you got stopped out, don't panic, you can get in again. Always have some liquid funds, when something unexpected happens, you can always buy the dip. If you're still in the market, you can buy more at a lower price and bring down your entry price by DCA.
Focus on major alts as small cap alts get crushed first and some may never recover.
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Look at KSM for example. It's amazing how it could hold and recover very shortly after the crash. My stop loss is still in place and it looks like I can move it up and make more profit in case it gets executed.
Last, but not least, here's something smart from SecretsOfCrypto!
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I find it the most important tweet not just for today, but for every day! We know every time Elon tweets, something happens to Bitcoin. Learn to profit from it as he won't stop and you can't convince people to stop panic selling. Buy when it dips and sell when it pumps, that's the only way to do it.
Get started with my referral code: m3yjA
https://www.bybit.com/en-US/invite?ref=m3yjA
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You are very right on this we should always take advantage of Elon musk tweets I guess that will be a good plan to keep
That is the only way. Crying every time because Elon has crashed the market does not help. Better turn it into our advantage.
!ENGAGE 20
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ENGAGEtokens.Glad you made some profits! Also, thanks for sharing that tweet, it's indeed pure gold.
Some people are paying too much attention to Musk's tweets when they should be keeping their eyes on the prize
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I agree, that tweet is pure gold and I wish everyone, literally everyone could see it and adapt.
We have to get on with out lives, do what we do and ignore Elon's tweet. I don't even know what he tweeted yesterday, don't even care.
!ENGAGE 20
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ENGAGEtokens.I'm amazed at how well you learned the crypto lesson in such a short time.
You speak and use the terms of professional traders, congratulations!
I can't understand or I don't know where to learn from.
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Thank you bluemoon. I wouldn't go that far, I'm just as a beginner as I was two months ago, but I'm learning every day and trying to improve.
!ENGAGE 20
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It shows a good learning ability, without a doubt!
ENGAGEtokens.Stop loss planning is very important, it is a shame that not all exchanges are offering that capability
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Whuuuuut? Are you saying some exchanges have no stop loss option? I wouldn't know as I only use Binance for now.
!ENGAGE 20
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Yes! Quite a few actually!
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Can you list a few for me so I know to avoid them? I would really appreciate it!
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ENGAGEtokens.Exactly it is not Elon Musk who is manipulating the market, it is people selling in panic, good analysis.
That's crypto, a cycle, it's all in the charts, if you believe in a project invest and hold.
Well said, that is what people should do and I hope in time Elon's tweet will not have much impact on anything.
!ENGAGE 20
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ENGAGEtokens.Thanks for sharing this. This is the best way to go about, since Musk tweet wave the market, I think trader should take advantage of it and sell when musk tweet is not favorable in the market.
This is the only way to go about. I hope in time will get sick of being manipulated and will start doing the right thing.
!ENGAGE 20
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ENGAGEtokens.