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Cryptocovery

This is a syndicated repost published with the permission of Slope of Hope – Technical Tools for Traders. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

It’s been quite a 48 hours in crypto-land! Let’s review……..

  • Magenta zone was the crash. It was basically the equivalent of the Dow Industrials falling about 5,000 points within the span of a few hours. I got stopped out of 100% of my positions and sacrificed one-third of my peak profits.
  • Green zone was what appeared to be the healing and recovery. This was where I re-entered my positions, and by the time I ended my work day, they were almost all very profitable. It was as if the crash had never happened.
  • Yellow zone was when I was asleep and when, with a single exception, I once again got stopped out of every position! So I woke up to literally 50 SlopeAlerts waiting for me. I re-entered my positions again, somewhat more reluctantly, and rather ticked off and cautious.
  • Cyan zone has been yet another healing process.

As I type this, I have (once again) just about fully recovered to the point where it’s like the crash didn’t even happen. Unfortunately, if last night I had decided to throw cautious to the wind and have no stop-losses (I would never do that) I’d actually have record profits again, because almost everything that got stopped out was stopped out due to stop-loss prices that were as tight as {insert colorful anatomical simile of your choosing here}.

Take FileCoin (please!) I had been stopped out at the crash and re-entered. Take note of the horizontal line. That was my stop-loss.

Now take a look at what happened overnight. See that brief journey beneath the line? That’s where I got stopped out and had to re-enter at a worse price. Nice, huh?

There was one, and only one, coin that survived and whose performance kept me sane. That’s our old friend Algorand:

This monster went up like 70% from its Tuesday morning lows. It basically saved my bacon.

So what’s the lesson in all this? I think I’ll let this stylish gentleman provide the answer:

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