Disclaimer (because maybe this might need to be said?): This is not finical advice. This is just an idea I am publishing to share it (because I think it's a pretty good one), and get feedback on, to hopefully make better for the benifit of us all.
This is just an idea I am publishing, to start a discussion. The chart at this point is meaningless. It's just the price, on the 4H. The only point of the chart at this point is because you need one to publish an idea. I could post more, with my actually indicators, and analysis, at a later time, but this is simply to discuss this idea.
1) This is for an uptrend in crypto. I haven't thought through how this could work in a down trend (it probably doesn't). I don't have the ability to make money on crypto by shorting it (a big disadvantage to me, and probably a lot of other people out there.)
2) This isn't without risk. Anytime you invest in anything, there is always inherent risk.
3) You got to start out with a decent buy in. And you have to leave yourself some room to hedge (e.g. If it goes down significantly, be able to buy more, to average out your initial buy in at a reasonable price, where this can still make you money.)
3a) My Advice would be never go all in on the initial buy in (no matter what your indicators, and your analysis are telling you.) You have to leave yourself some room to hedge, in case it goes down. I might go 1/10-1/4 my account on my initial buy in. Max. But I have learned some hard lessons, so for me Risk management is #1.
4) Once you have gotten in, and have hedged your position (unless you didn't need to, and just got in at the perfect bottom) to the point where when it is going back up, you are starting to make profits, take those profits. e.g. say your initial investment is 1000, and the price has you up to 1200? Take (sell) that 200, and get your investment back down to only 1000. If it keeps going higher, sell back down to 1000.
5) Assuming this is a legit uptrend (confirmed by your indicators, and analysis), when it goes down, and you are no longer sitting at 1000, buy more to get you back there (unless the uptrend has reversed, in which case sell all, until it reverses again.)
Thoughts?
This is just an idea I am publishing, to start a discussion. The chart at this point is meaningless. It's just the price, on the 4H. The only point of the chart at this point is because you need one to publish an idea. I could post more, with my actually indicators, and analysis, at a later time, but this is simply to discuss this idea.
1) This is for an uptrend in crypto. I haven't thought through how this could work in a down trend (it probably doesn't). I don't have the ability to make money on crypto by shorting it (a big disadvantage to me, and probably a lot of other people out there.)
2) This isn't without risk. Anytime you invest in anything, there is always inherent risk.
3) You got to start out with a decent buy in. And you have to leave yourself some room to hedge (e.g. If it goes down significantly, be able to buy more, to average out your initial buy in at a reasonable price, where this can still make you money.)
3a) My Advice would be never go all in on the initial buy in (no matter what your indicators, and your analysis are telling you.) You have to leave yourself some room to hedge, in case it goes down. I might go 1/10-1/4 my account on my initial buy in. Max. But I have learned some hard lessons, so for me Risk management is #1.
4) Once you have gotten in, and have hedged your position (unless you didn't need to, and just got in at the perfect bottom) to the point where when it is going back up, you are starting to make profits, take those profits. e.g. say your initial investment is 1000, and the price has you up to 1200? Take (sell) that 200, and get your investment back down to only 1000. If it keeps going higher, sell back down to 1000.
5) Assuming this is a legit uptrend (confirmed by your indicators, and analysis), when it goes down, and you are no longer sitting at 1000, buy more to get you back there (unless the uptrend has reversed, in which case sell all, until it reverses again.)
Thoughts?