While it's nice to buy & hold, you can also trade the major pullbacks to increase your holdings in a particular crypto. If you buy 10 000 tokens and have an opportunity to increase your holdings by 20% at no cost - you'll be cashing out 12 000 tokens when your target price is hit rather than 10 000 tokens. Do that once or twice and you've drastically increased your potential returns.
In this example there was a massive 43% pullback. I was away and couldn't trade it; but had I been around I could've traded myself into a greater amount of these tokens. How? Buy selling at the highest price and buying back in at the lowest point in the pullback.
So, this is how the chart looks.
And then some details to show when it couldn've been traded in increase holdings:
Note A - the max price and the max pullback of 43%. It would be impossible to predict those maximum values and benefit from that whole 43%. But what I can do is more accurately predict B - a window of opportunity where I can benefit from the 26%. That 26% range is nestled comfortably within the max values.
If it looks like a max 20% pullback I'll often just ignore it.
But for major pullbacks like this - it's a good idea to consider trading it to increase your holdings. At the end of the day you want to cash out at some point - and it's a whole lot nicer to cash out more of something.
In this example there was a massive 43% pullback. I was away and couldn't trade it; but had I been around I could've traded myself into a greater amount of these tokens. How? Buy selling at the highest price and buying back in at the lowest point in the pullback.
So, this is how the chart looks.
And then some details to show when it couldn've been traded in increase holdings:
Note A - the max price and the max pullback of 43%. It would be impossible to predict those maximum values and benefit from that whole 43%. But what I can do is more accurately predict B - a window of opportunity where I can benefit from the 26%. That 26% range is nestled comfortably within the max values.
If it looks like a max 20% pullback I'll often just ignore it.
But for major pullbacks like this - it's a good idea to consider trading it to increase your holdings. At the end of the day you want to cash out at some point - and it's a whole lot nicer to cash out more of something.
