Crypto.. if you insist on trading
Automatic DCA into core crypto has worked well, but here's a tip if you insist on trading and (gasp!) using Leverage
The short-term crypto/dollar markets are manipulated. It is a game, a casino game. You are playing it if you “leverage trade”.
(*Nothing here is financial advice. It’s Education. Do your own homework and due dilly*)
Scalpers: Traders betting the price will go up or down on a small timeframe. Always using leverage. Small percentage gain
Swing Traders: Traders betting the price will go up or down over a few hours or days. Using lower leverage or “spot” trading meaning buying and selling the asset. Looking for gains around 5-20%. (Advanced swing traders will use high leverage with high margin)
Hodlers: Traders that buy the asset at the lows and hold for several months/years. Looking for 100% gains.
How the LQL chart is drawn by the casino. Lines are drawn at levels where bets have been placed. These lines represent the liquidation price of those bets. The casino will move the price there and extract the money from the gamblers.
Red lines are highly overleveraged bets. High risk. They require the asset price need to move only 1-1.5% to liquidate the gamblers. This is how the market is manipulated. To extract liquidity from overleveraged gamblers (”traders”). Rule 1: No red lines survive - the price will be brought down to flush these red lines.
Use the strategy:
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