Preserving Your Cash: The One Skill Most Traders Lack

in voilk •  23 days ago
    When you see everyone whining on the internet about markets being too down and you checks it out just to find out it's only down -1% in a day


    People in stock market creates a big fuss about these little moves and it's actually a good thing because it tells they're not the one who stays chill and calm when they're losing money

    Preserving Your Capital is Everything

    When it comes to trading this is a fact that you should know how to protect and preserve your capital like at the end of the day

    When market starts to go down, most of us in crypto believes "our investment is with great coins" it'll comeback

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    Image by Krzysztof Dzwonek from Pixabay

    While I've seen in stock market people panic and sell everytime they see -2% across the market

    It actually tells they've fomo but also knows how to minimise losses like why would you actually risk 10% or more for 5% gains from the market?

    In Crypto our expectations are unrealistic

    When it comes to market going down crypto holders think of the max the coin will go down is 20-30% so they won't sell it and just hold cause of the conviction

    But actually the drawbacks in crypto is more scary than those of stock market

    So anytime you see crypto have rallied for a good couple of weeks - don't expect drawdown to be like 20% but consider dropping everything till they pull up 80-90%

    Imagine saying you're holding that coin because potential is 500% up and drawback is only 30%

    That's the unrealistic expectations in crypto and no one can preserve their capital when this is the approach.

    When Someone Says Bull Run haven't even began yet

    People who have watched bitcoin go from 16500 to 109k are telling retailers that you're all too early and bull run is still on

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    Market already exceeded my bull run target that I had for bitcoin in 2023-2024 which was around 84k-120k on bitcoin

    And the cycle range was defined based on previous years like 420 days of uptrend already happened

    We should've witnessed a crash like before but things are holding up nicely because stocks have held well

    I believe the moment stocks starts to meltdown it'll be nasty and we're going to witness more worse crash than it was before.

    Eyes on Leaders

    Stocks like Nvidia are important to monitor going into next couple of weeks because this is how bull run started

    When these started to rise and created an uptrend for the entire market

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    Trump tariffs are joke and for now crypto isn't showing any weakness as stocks are doing because what's coming tomorrow from white house

    That digital asset summit and trump shedding more light on strategic reserve I guess it's the only hope left for bulls

    And the worse will come ahead of it turned out nothing burger event.


    Wrapping Up...

    Already seeing people betting big on altcoins once again because they're already down bad, can't get any worse right?

    We don't act as quick as we should when market is going down and we're losing profits

    So the market teaches people when they should've take profit hard way. For now, all eyes on tomorrow event as it'll be one big and volatile day

    But on the longer time frame I'm sure crash is more inevitable than a bull run as everyone else is expecting after tap years of uptrend. In the end it's just my point of view I wonder what's your thoughts are about it, do share in the comments.

    fin.

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