Attack Of The Red Candles

I was doing so well with my imaginary trading, that I became overzealous once again. I went all in on one coin, with all my imaginary thousands, and sat back to reap the rewards. A near-vertical takeoff was imminent, apparently, and I was set to make an imaginary windfall. Suddenly the red candles appeared across the board.

Fair enough, it was a Bitcoin pullback, which meant all the altcoins followed, but my shytecoin got hit particularly bad with a 24% correction. So now, I'm deeply in imaginary deficit.

It is important that you realise that this is all make-belief money, and not my savings or money from remortgaging my home. Be careful with crypto, since you can get wiped out within minutes.

Also, this isn't financial advice. Will you take advice from someone who has imaginary money? Or bets his whole stash on one shytecoin? Exactly.

FALSE PROPHETS

I decided to follow the advice of some "experts", with their flashy graphs and price predictions. Again, there's no way I'd do this with my actual hard-earned dough, but hey. They all had this line pointing directly to the moon. Sure, some of them showed some bumps along the way, but not a single one of them predicted this gigantic nosedive.

There are disclaimers on most of their pages, of course, and naturally nobody can predict the future. There are acts of God, political incidents and wars that can cause sudden and violent movements in the market, but I can't figure out what caused this one. I suspect it was just the natural pull back from what looked like an over-optimistic bull run. Things were going up too quickly without any particular reason. It was probably a bunch of whales thinking "nah, I'm going to take some profit now. This is too good to be true".

LAWS OF PHYSICS

Crypto can be a win-win, but in the overall grand scheme of things, within a trading platform, it's a zero-sum game. Someone has to lose for someone to win. Since the system isn't closed, for us to continue to win, new losers must enter the system with their money.

Undoubtedly there are real money equivalents of me. Someone sold their car and went all in on that shyte coin and has now lost a quarter of their money. Someone, the potential winner, has bought at the new lower price and looks to benefit when the price goes back up. If it does.

Since the price went down significantly, it doesn't have to recover for the new buyer to win, thus makes it harder for the loser to unlose. Unless new would-be losers enter the game and become overzealous, hence buying the current loser's loss. Or something.

DIVERSIFY & HODL

Of course I haven't really lost the imaginary money. It's just worth less for now. As long as I HODL until the value is restored, I'm not in the loser camp just yet.

I feel the loss could have been much less had I spread out my trades across many shytecoins instead of just one. A lot of the coins only pulled back about 3% or so, not 30%. Bitcoin itself corrected quite moderately. Bitcoin Cash and Ethereum Classic got hit quite badly. The stable coins didn't move much because, well, they're supposed to be stable.

From the non-trading world, there are two diametrically opposed schools of thought. You have the mile wide, inch deep system and the inch wide, mile deep ideology. If you have insider knowledge, the latter is a no-brainer.

Sadly there are people who will be forced to sell and cut their losses. These are the true losers. Or perhaps, the ones that have controlled their loss. There might be taller red candles in the immediate future. Who knows?

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Peace and Love ✌🏿
Adé

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