Hi Luc!
Thank you for this new awesome article and video!
Your strategy makes total sense to me and makes me understand a lot more about how trading on these coins work :) funny that so manny decisions are made based on emotions haha.
I just had one quick question tho, what do you if you go long and the price gets lower and lower where you did not expect it. (eg you buy after a base cracks and the price drops big time but there is not a bounce within a week after this.) would you sell your position at a loss or just keep it hoping it will go back up?
Thank you!
With kind regards,
Enzo
If you commit to the buy and it drops you should be managing your bankroll and buying as it drops all the while if something doesn't look right check the news on the coin through reddit and twitter and depending on if there bad news, keep your trade available for a pull out in the 10-20% loss region.
If you feel its just a late rebound or if the previous chart history shows similar drops and pullbacks then you could keep it in for the long haul and stay invested in that coin until it comes back for breakeven or 10% profit.
this would be my idea of trading in this situation which is a downfall and probably takes a good bit of experience reading charts to understand when you are in this situation. Luc might have better advice Im just trying to relay what i have learnt from Lucs videos but im still a novice trader
I hope Luc still answers this question... But I'm betting he'll just say, "I participate in the next bounce."
I asked a similar question once, and his response was that he gets out on the next bounce, win or lose. But I also gather that most times, Luc likely just participates on next bounce. If you have a sensible way to layer your size in, you should rarely NEED to take losses.
Imo, this is all about managing your risk.
I layer in, in 1-2-4-8 type fashion. Where each of my expected panic distances get to a heavier size, and the TOTAL size/risk I will incur is decided before the trade is even put on. How you add size on the way down, tells you how much price needs to move to get back to Break-Even/Profit.