Hello Bones, I'm sorry it went like that. Maybe it's not a thing for you, but it
can work in the right circumstances.
Well, so much for trying to short BTC on margin as a hedge and setting a wimpy stop loss.
REKT! Should have known better. Not sure what strategy that I need to employ to try and preserve value in this downtrend market.
If hedge it must be, it's better to try harder, knowing we'll take a few blows. It's supposed to cost us more than a "wimpy" loss if it goes against us. It takes a cool mind to be able to swallow a 20%-25% loss - but such a loss only if she shows signs of mooning (>10k, say), not if she just gets back but still stays under the latest local max (8900 or so).
The hedge short should be sized (small) and placed (high) as to become an unbearable-cut-me-here liability only around 12k, ideally even higher, so it's advisable to build it from < 1 leverage, scalping (partially closing/longing/buying) on each dip and reshorting (selling) slightly more, higher.
In the process, I had to swallow some losses already to lighten my position. But now I feel safe enough. I'll dump it with a curse if it really becomes unbearable. Btc > 12k? I can live with that. Half-sour curse really. Get under 7.8k and I'll collect some. Not much. Just so I can add it back at a higher price, if (when?) it happens.
You might be a bit too emotional, or your play money might be too small to buy serious insurance. However, with some discipline I think the game can be can practiced (actually played!) as if the small play bankroll were a gazillion dollars. After all, the coin
can be broken into very fine grained units.
Please tell me you aren't serious...
He probably wasn't - a half-assed hedge played as a noncommittal bear is no way to go about it.
On the other hand, I confess I'm being serious, Bob - in a cold, but secretly hopeful, would-be unemotional way. Scenarios, worst cases, etc., all worked out in advance is the way to go. Know how much you can lose and in which exact circumstances.
I hope you can feel my neutral, clinical tone, Bones. This post isn't meant to point you out or offend you. On the contrary, you have lots of experience I don't have and likely never will (mining etc), so I look at you with respect and think you might see my point. Honestly, I haven't actually had a very expensive lesson yet, but I did have quite a few smaller ones. That's how I learned the little gameplay I know (very little!). You just got a lesson too, at a reasonable price. You weren't actually rekt if you could decide to call quits (as you did), so you survived after all. Come on, whine less and suffer your blows like a fightin' man
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