Long Or Short Crypto Assets? Here's Some Key Factors To Note..
Trading Crypto Assets is inherently a 'belief' business.
That is why you get some folks who argue its a good investment, others say its complete toilet paper.
Whichever way you sit, there is one thing that is really important to understand.
Whenever you are buying anything, it is always best done on a reasonable dip. Dips are the only way to gain 'value' on an investment. Statistically, if you pull up any chart, on any asset, high buying (with leverage) will likely cause you to lose money.
This is because you either will not have enough equity to sustain a move south, before a continued higher high, or you will trigger a stop loss that is too close.
For instance, take the last move (labelled light downtrend). This has been tentative, but had you got long on touches to the lower TL, you would be far better off than those who got long continuously at the upper TL.
Because the general market view is slight 'Risk On', you can BTC is not geting slammed nor is it rallying tremendously. It is sitting, like many other risk assets, waiting for a reason to get higher (or lower). This fact is not impacted by the basic rules of making money via business, which is to buy lower, sell higher.
These are just facts. Sentiment rules the movement of all Markets in between.
Going forward as a comment on the sentiment case, it is likely further Risk-On is going to propel crypto assets, as it often does for equities and other 'risky' investments.
This brings me back to the start - it's a belief asset. If you are long you believe in either the crypto case, or the global economy case, both of which are not guaranteed.
That is why you get some folks who argue its a good investment, others say its complete toilet paper.
Whichever way you sit, there is one thing that is really important to understand.
Whenever you are buying anything, it is always best done on a reasonable dip. Dips are the only way to gain 'value' on an investment. Statistically, if you pull up any chart, on any asset, high buying (with leverage) will likely cause you to lose money.
This is because you either will not have enough equity to sustain a move south, before a continued higher high, or you will trigger a stop loss that is too close.
For instance, take the last move (labelled light downtrend). This has been tentative, but had you got long on touches to the lower TL, you would be far better off than those who got long continuously at the upper TL.
Because the general market view is slight 'Risk On', you can BTC is not geting slammed nor is it rallying tremendously. It is sitting, like many other risk assets, waiting for a reason to get higher (or lower). This fact is not impacted by the basic rules of making money via business, which is to buy lower, sell higher.
These are just facts. Sentiment rules the movement of all Markets in between.
Going forward as a comment on the sentiment case, it is likely further Risk-On is going to propel crypto assets, as it often does for equities and other 'risky' investments.
This brings me back to the start - it's a belief asset. If you are long you believe in either the crypto case, or the global economy case, both of which are not guaranteed.
Nota
Weakness coming into crypto assets.
Nota
Miniscule push off from local TL. Would not be surprised if we see a break.
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Posts Not financial advice.
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