Shorting BTC is Dangerous, So I Went Long at $6.9K

This has been a mixed week, with some small gains and losses on Bitcoin (BTC) longs and small earnings on alt trades which I will discuss in the coming weeks. I would like to take this opportunity to explain a few things about my trading style and approach in general, as it can be confusing for many.

First, I do not short Bitcoin. This is not because I have no desire to look for short positions, but because I am American and cannot legally trade on leverage exchanges that offer Bitcoin shorts. The only exchange where I can legally short is Kraken, which is notorious for huge wicks on candles that don’t exist on other exchanges. I will not trade anywhere that my risk management strategy cannot be properly executed – so long wicks that stop out traders who would otherwise be fine elsewhere are not acceptable for me.

That said, I only look for long entries, which is not an ideal situation, as it forces me to trade against the trend when I want to enter a position. I am comfortable with this because I have a proven and well-defined trading system. It allows me to take many small losses, compensated for by a couple of large gains a year.

This works for me but is unlikely to work for another trader who does not fully understand my situation and system. To that end, nobody should copy my trades, or anyone else’s. The responsibility to develop and enact a system is yours, and your system will be a result of your own financial situation, timeline, and expectations.

It is also important to note that I only trade with a small percentage of my overall portfolio. I only trade 15% of the funds allocated to my crypto portfolio and my total crypto allocation represents only 10% of my entire investment portfolio. As I often say, I plan my losses, expecting some of the trades I make to go against me. As such, I am comfortable losing my entire trading portfolio, and it would not have any effect on my life. That is my system.

I would also like to drop a quick note about longing and…

Source Link