Bitcoin riches through sitting on one’s hands

We are not speaking of “hodl”. Consequently, we also are not referring to any other way of passive long term investing. Nevertheless, two paradigms come into play when dealing with a wealth preservation strategy in Bitcoin. One, Satoshi Nakamoto pointed out: “As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.” The other is Bitcoins’ limited supply of 21 million as a decentralized easy, fast, and long-distance payment method. Bitcoin riches through sitting on one’s hands.

Jesse Livermore said: “It was never my thinking that made the big money for me, it always was sitting.” Easier said than done. We are wired to take quick small profits and find it as such extremely difficult to sit through lengthy-time periods to ensure larger profits should a trade develop into a sustainable trend.

While trailing stops most often fail being set too tight motivated again by the fear of losing one’s gains, one solution is our quad exit method that we use in our free telegram channel in which we post-trade entries and exits in real-time.

BTC-USDT, Weekly Chart, Taking profits into the extended move:


BTC-USDT, weekly chart as of January 9th, 2021

Here is an example of the application of this psychological and money management tool. We entered a long trade on April 15th last year at US$6,726. Shortly thereafter, we took partial profits to erase risk at US$6,993 and locked in some more profits at US$7,248. This did not just provide for solid trade results. Most of all it satisfied the psychological hunger to now be able to sustain the idea of “sitting on one’s hands”. With a preset like this, we were able to let the remaining position size of twenty-five percent, fittingly named “the runner”, do its thing. We exited the trade last week on 1/9/2021 at US$40,729 (a 506% profit). An exhaustion move with a confirmed counter directional signal on a larger time frame warranted to do so.

BTC-USDT, Weekly Chart, Ten runners still on the move:


BTC-USDT, weekly chart as of January 9th, 2021 b

Still, we would be in trouble without another additional methodology in play. We call these reloads. Far from a typical form of a high-risk methodology of pyramiding, this way of adding an individual low-risk trade allows for ending up with multiple runners should a trend develop as it has over the last three quarters in Bitcoin.

With this methodology, there is no need to pick tops and bottoms. Surviving runners extend into building a large position size. In the same way, partial profit-taking of such a position through closing out trades, meaning reducing overall position size is possible. Useful if possible trend exhaustion, distribution zones, or otherwise target zones establish themselves throughout the upward move.

The weekly chart above shows with yellow arrows entry points of trades we posted live in our free Telegram channel where we still have the runner portion exposed to the market. It is this combination of tools we apply that allows us to be left with choices. This in regards to additional entries and various partial profit taking points. It allows us to let a good portion ride while sitting on our hands.

BTC-USDT, Weekly Chart, Bitcoin riches through sitting on one’s hands:


BTC-USDT, weekly chart as of January 10th, 2021 c

Now that the cat is out of the bag and mass media has pointed out Bitcoin´s staggering gains last week, professionals typically fade the money coming in from amateurs stimulated by the hype. But not so fast. Are we seeing Bitcoin’s typical extreme retracement? In the weekly chart above we have identified four (A to D) major retracement support zones.

  • All-time new highs from 2017, retested in November last year near US$19,888 (D).

  • The most dominant supply zone marked by a “POC” of the 4th leg up volume analysis near $23,512 (C).

  • Fibonacci retracement 0.618 with price zone near US$27,392 (B).

  • Fibonacci retracement 0.786 with price zone near US$33,945 (A)

Yes, we had a four-leg move up from US$3,782 and we are extended without a doubt, but who says we won’t find ourselves in a few years at levels tenfold from here. Livermore was right in his approach of sitting on one’s hands. Luckily our approach takes the worry and guesswork out of these debates. We let the runners run. Should we see a deep retracement we get additional low-risk entries with their runners possibly surviving as well. And yes, if you are relying on an, in part, income-producing system this is certainly a spot right here to take partial profits off the sum of your runners. What is not wise is to tighten stops here or typically place them somewhere where they are emotionally comfortable in the middle and have the typical experience that they just get nicked out before prices advance further again.

Bitcoin riches through sitting on one’s hands

Jesse Livermore also said: “Nobody can catch all the fluctuations.” With the above-described methodology, one doesn’t need to. This self-regulatory system allows taking the agony of being right, the need for perfect timing, and most of all the hardship of not letting the cash register ring out of the equation. Livermore also stated: “Men who can both be right and sit tight are uncommon”. We find that the illustrated approach is one way to circumvent the difficulties of participating in a steep trend without its typical pitfalls.


Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g



All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.




Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.



Important Trading Risks and Earnings Disclaimers - Terms of Use


RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.



U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.


NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.


EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.


CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.



All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.


Terms of Use: Your use of this educational website indicates your acceptance of these disclaimers. In addition, you agree to hold harmless the publisher and instructors personally and collectively for any losses of capital, if any, that may result from the use of the information. In other words, you must make your own decisions, be responsible for your own decisions and trade at your own risk.

Recent Posts

Stay Up-To-Date with New Posts

Search By Tags

join my free

telegram Group

Mentorship

packages

download my

free book