I’ve been vocal that there isn’t much to do in crypto trading right now.
I’m a trend follower at heart, and when my systems tell me to step back, I listen. If I can lay low for a few weeks, it gives me the mental space to rest before conditions turn more favorable.
So yesterday, I escaped to the mountains with my partner.
We booked a stay in a mud hut built by Chinese goldminers in the South Island of New Zealand in the 1800s. What was meant to be a brisk two-hour walk turned into a ten-hour hike straight into the middle of nowhere. One wrong turn sent us miles off our intended path.
The sun was going down. It was getting cold. We didn’t bring nearly enough resources for a hike like this.
That’s when it hit us: lock in, or we’re on the news.
Hiking New Zealand alpine terrain is dangerous. Two hikers had unfortunately died the same day we were hiking, just a few hours away.
By the fourth major ridgeline, I said: if we don’t see a hut soon, we cut our losses and head back in the dark. We couldn’t afford to get stranded.
That was my stop loss.
And it’s no different from trading. You can double down on a losing position and get even more stranded… or you can call it, turn back, and live to trade another day.
Thankfully, the hut appeared. My stop didn’t trigger.
In hindsight, it wasn’t that bad. The views were spectacular.
But the next morning, with only a few drops of water left and a whole mountain still to descend, the lesson stuck.
Here I was struggling to catch my breath after climbing up the last mountain in the morning.
Whether you’re lost in the markets or trying to buy the dip, make sure you have a plan.
Don’t get stranded from your entry.
Speaking from experience.
From where the sun rises first,
Louis Sykes
Senior Crypto Analyst, All Star Charts
