BOOK OF MEME · Leverage vs Spot · Should I Plan or Not?With the log chart we can focus on growth potential, the all-time high, highs and lows, the bigger picture, the chart structure and long-term cycles.
With the linear chart, we can know the truth of a pair. Are we looking at a cycle top or bottom prices?
BOMEUSDT (BOOK OF MEME) is bullish based on current price action and trading volume.
Looking at this linear chart, it is easy to see BOME consolidating sideways after hitting bottom. It is easy to see a major cycle (left), a major crash and then the market going sideways.
If I were to show a log chart, the action after February would be really pronounced and you would see lots of bullish and bearish moves. These are indeed happening but are minimum—small—compared to how the market actually moves. Market noise.
If I were to focus on the short-term, I would have to become Nostradamus in order to be able to predict the next move.
If I focus on the long-term as I usually do, I can easily predict what is going to happen next.
As a group, we cannot beat the market because we are the market; but, there is no need to "beat" the market, we only need to make money and there are many ways to make money; choose what works for you. We choose low risk vs a high potential for reward.
We choose simplicity and a strategy that works. Literally, just buy and hold.
I understand leverage (margin) and I use it of course, but I cannot cry if I incur a major loss. I cannot cry, blame and complain if things go wrong; why? Because before making the first purchase, the first move; before making a decision or any trade, the first thing to consider, adapt and accept, is the fact that all money can be gone in a flash, that's the thing about leverage trades. If things go right, you get to win big but, if things go wrong, you get to lose everything... Not really, if you control your position size your risk is limited.
Ok. Asymmetric risk/reward. Maximum 5% out of the risky trading capital goes on a single trade. It can be 3% or even 2% or 1%.
If you can't make money slow, you won't be able to make it fast. Making money is an art and trading is the same. It is a craft, a profession, a job, a career; call it what you want, but it takes effort, and, since there are so many smart people doing the same, we have to be smart when we decide to participate.
How can I be smart when trading?
Build a plan before taking action.
I love you. I am literally feeling true love right now as I write this, I hope it reaches you.
Thanks a lot for your continued support, it is appreciated.
Namaste.
