Re: How do you day trade with bitcoin these days while it is full of stress?
I don't know why most people enjoy the heavy rise of bitcoin while it is only good for long term holders. How long do they want to hold? Forever? They have to sell at some point and exit the market. For day traders like me, expensive bitcoin is not attractive at all because it not only reduces my profit, it also increases my stress.
I have to buy at $40.000 and sell at $40.200 to gain daily profit (This is an example). This is much less profitable than when I used to buy at $8000 and sell at $8200 the same day.
I have to buy at $40.000 and sell at $40.200 to gain daily profit (This is an example). This is much less profitable than when I used to buy at $8000 and sell at $8200 the same day.
We're seeing lots of 5-10% daily swings. That's more profitable than a $200 swing in the $8,000s.
Apart from this, whenever I buy at $40.000, I am worried about a big crash right around the corner because the prices are too high now.
Stop losses should take care of that. Aren't you a day trader? This is Trading 101 shit.
How do you cope with this situation as a day trader? Do you dare to buy $40K bitcoin for short term trading?
I hold most of my wealth in BTC. When I day trade, I use BTC collateral to leverage long (2-5x, nothing crazy) with religious use of stop losses of course. I can do this because I am very confident in Bitcoin's long term uptrend.
I was here in 2013 and 2017 so I know by now, prices are not "too high." Yes, there will be some shakeouts. Brutal ones. When it happens, stop loss your longs and get ready to buy the dip. Rinse and repeat.
We're going a lot higher this year.
