Altcoin Portfolio Rebalance A to E

February 13, 2023

Checking The Stops

We’ve been on the defensive as the early stages of a potential altcoin season continues to unfold.

The coins in Stage 2 are where the risk of loss is. So I talk about moving stops up.

As we move from stage to stage in the trading plan we have a different set of options in the flowchart in front of us

In Stage 2 of the trade our focus is reducing risk and getting the stop loss above our entry

once the coin is in stage 3 it has proven itself correct and we let it maintain that correctness by staying above our stop loss

This creates a filter for us that only keeps the coins that are worthy of holding.

After the coin gets into Stage 3 – I want to error on the side of trying to hold it…

This is where your input on the profit levels will come into play

as you decide if you should continue holding the profitable coins

or if you should take profit right now.

for my own part and in the application of this study as I do the model portfolio, I will always error on the side of leaving the risk open for the stage 3 coins.

In other words I will leave the stop loss just above the entry and I will let any profit evaporate. And I will do this over and over and over on the way down the down trend, each time we have a consolidation like this that COULD be a bigger market turn.

This is a difficult long-term trading perspective. It takes some planning.

  • I invite you to read the book reminiscences of a stock operator from start to finish a couple different times so that you can live through the learning curve of a real Trader who shares his life experience as he changes from a short-term Trader to a long-term Trend Trader

This is an important perspective that’s built into the way the Crypto Smartwatch is implemented.

The pro alerts is just a more specific granular detail giving you the entries the stop loss levels and the projected Target levels for each trade… and of course the live notifications from the spreadsheet help make everything much more specific than the color-coded crypto Smartwatch spreadsheet

I hope the lessons shared in this video are helpful and I would love to hear your comments