Topic: What do you do when your position is against bitcoin direction? (Read 205 times)

Many altcoins have been known to gradually emulate Bitcoin in its movement as, what affects Bitcoin is always reflected relatively on altcoins but, not all times and as such, I analysis the coin am trading on rather than use the proposed relations you've talked about in the OP.

When a trade isn't going my way, the most I do is endure the much I could. Somehow, I always have hope my analysis is in tact and what might be playing out is the pull back before going back towards my direction. When it's eventuay not, I'll just let it hit my stop-loss and that would be it for the trading session.

Sometimes I also think that when the opposite position occurs, I have two options: stop trading or be patient so that losses don't change my money. I have often experienced turning away from predictions when trading in the past, sometimes predictions and analysis are not the main benchmark in trading in crypto. The thing that makes us most afraid of continuing to trade is if we reverse direction when the price is up and suddenly it dumps again.

depends on the size of margin, if the size is too big and the market seems like it's in favour of the bitcoin direction long term i might think of cutting lose to my position that isn't aligned with current market direction and reopen when we're already at the peak of the market direction or maybe if there's resistance that's about to be hit you can always wait for the price to bounce a bit.

been stumbling upon the same scenario, losing while supposedly making profit just because an open position is a bad position feels like a letdown. definitely a distraction that could break the focus trading in highly leveraged future market.

Just stop trading if you think your trading position is not aligned with the market or bitcoin direction. Or set a stop loss so you can limit your losses when trading. Otherwise, if you ignore all those possibilities but will pursue trading despite on the wrong position, you will only lose your funds in trading, although you also have learned some lessons that you might apply in your next trades.

Altcoins season is not what I am talking about. Almost all the altcoins will follow bitcoin price but just few will not. I am referring to the few which are not many. Also this would be for short period of time which can be within just some minutes or hours.

For those that posted about using stop lose, I think that is a good idea.

Just watch and wait. Be patient and control your fear and greed. When I'm trading I always use take profit and stop loss. With it, I wouldn't be risking all the money in my account and I could manage my loss at the same time could manage greed. No one could really know where the price will go but if you learn how to read the charts you could also predict where it would go. Just patience and dedication in learning will help you along the way.

I will check the market situation and if I see that Bitcoin price direction will reverse, I will buy more and wait and see. But if not, I will close my trading no matter what is the result and usually, I close it before the lose increase higher.

For the altcoin, I will choose the altcoin that moves directly with Bitcoin movement. Ethereum is my choice to trade because the direction is almost the same as Bitcoin. But that will not always guarantee because sometime Ethereum can stay at the price and just wait for the Bitcoin correction end or rise to high price.

If I am not trade and still observe the market position, I will not takes a move and still wait for the next few hours. Usually, the market will give a sign where to moves although that will not also guarantee our analysis can follow the market movement. The important thing here we use the money we can afford to lose so when the market change the direction, we will not lose too much money.

Stop loss is a vital order Dr.

Because you don't know what will happen next hour, and I am sure that you are not available online 24/7. Even if you are available online, you might have other things to do and your life is not 100% bonded with computer screen, smart phone screen, charts and trading orders. To save your time and to avoid market crash that can wash out your capital, let's always set up your stop loss order.

Stop loss order can be used flexibly. When you open your positions, it is a price where you actually exit with a small loss. When you don't take profit yet but your position is going with profit, you can lift your stop loss price to your entry. How to use Stop loss order depends on you.

Hold? I mean I am a long term investor and I expect it to go up, which means that if it goes against my investment then it means it is going down. When price of bitcoin goes down, there are two options in my mind, either hold or buy. If I have any money then I buy some more because it's down, if I do not have any money then I just keep on holding and wait for it to go up again.

Just recently it reached under 50k, and I told everyone to buy as soon as possible, it didn't even stay there for too long, reached 52k-53k ranges very very quickly on almost the same day if I remember correctly and I still said keep on buying, look at it right now, it's 20%+ higher and people are not seeing why that's a big deal. I have to point out that if you want to make money in crypto, you gotta hold long term.

The problem with altcoins is that their price is tied to two variables: Bitcoin and a low market cap. Therefore, any change in supply and demand will lead to a difference in prices. If no change occurs, the price of Bitcoin will affect the prices. Therefore, trading altcoins is more difficult than Bitcoin and less profitable because the low market cap will not always be positive and push the price up.

I know how to use the stop lose/take profit features but I don't apply it to my trading position all the time, I choose when I must apply it and when I feel it's useless to me. The time I love applying it is when am not too certain about the price that am expecting the asset to get to and also when am not going to be available for a long time to keep watching my trade. I don't feel is necessary to use it all the time. You could apply stop lose and after you trade has been cut, the market can turn and start going in your direction.

Risk management will work here and if we are traders who always set stop loss, then maybe we won't bother to exit the trade because if the stop loss we apply is reached then it will exit by itself. Maybe this is intended for people who do not use a stop loss strategy like this, so there are various things that will be done, depending on each of us.
I personally will do an analysis first, although there is no analysis that can be right, but at least I have an idea where the price reversal point will occur. I will also adjust to the capital I have, if I feel the capital is sufficient then maybe I will reopen the position in the same direction (with a higher risk). However, leverage will also be a factor that will be considered in making decisions.

You need to do it when you open your trading position, use either stop loss or stop limit order for your position to defend your capital even when you are sleeping.

If you during your sleep time, market goes opposite to your open position, risk of liquidation is big if you use leverage or futures.

[Guide] One of best weapons in trading: Stop loss order.
What is a stop limit order and why investors use it
What is a stop limit order?

If I enter a trading position and the price of Bitcoin actually goes against my predicted direction or when it starts happening, I will either exit the trade to stop lose or I will exercise some patients, still holding my position and believing that the price is going to go in my direction. The only reason I will not exist the trade is if am using a low leverage and sure that the price can never get to the point where I will be liquidated.

You can use Crypto Correlation Tool that is interactive too but it is limited to some old and top altcoins. The table for last 1 year shows that Bitcoin bull market is helpful to lift up altcoins. The bottom line is how much altcoins (old and top ones) have rallied from their bottoms and how much their prices now compare to ATHs. You can get it with filter on Coinmarketcap.

• https://www.blockchaincenter.net/en/crypto-correlation-tool/

Well, BTC dominated almost all coins/tokens if you go to the tradingvew BTC.D as you can notice these days it rising meaning 57% of the BTC price action can affect other cryptos when the price surges or declines.

I actually use it as another indicator or use BTC to know the current trend or use it to know when to be patient.
About the strategies you asking to honestly I still haven't found a strategy that will work if the altcoin is against the bitcoin price movement the only thing that I do when it's against the Bitcoin price movement I always set a stop-loss to avoid further losses I know it always happens and then I wait for that altcoin to be corrected soon and retake a position under FVG or order block.
SMC is I think a great strategy that will work in this kind of situation I am applying it but I'm not 100% sure if I am doing it right since I still learning from all the strategies that I found everywhere and experience is the key in trading apply what you learn and develop them until you found your own strategy.

I suggest learn something from this video about SMC below

- https://youtu.be/ECMYxWuir0A?si=izQ7cHxL-jMgb7Fa

You can use Altcoin season index but it delays the confirmation of an altcoin season. When the index says, it is an altcoin season, altcoins already rallied up a lot. And you will join in times when market are hyped enough and if you don't enter and exit the market with altcoins and with good discipline, you will stuck at top of the season and get loss with time when altcoins fall down with time.

Sometimes altcoins move in same way of Bitcoin but many times they move oppositely with Bitcoin. There are times you will see Bitcoin is up, altcoins are down.

First of all, I just want to state it very clear, as long as cryptocurrency is concerned, Bitcoin controls all other alt coin, and if Bitcoin is falling, it's very rare to see an alt coin going the opposite direction, that's why as you said that you normally pay close attention of what Bitcoin is doing when analyzing any alt coin, it shows that you really knows how the market works, and as such, I am going to say that you are actually an experience trader, though just as you rightfully said, sometime, their are some alt coin that will be going the opposite direction but just know one thing that it wouldn't be long, before it align with the movement of Bitcoin.

So in my own opinion, according to your question, anytime I experience such, the only thing I usually does is to close the trade, regardless of if am in a profit or a loss, because the market have a very bad way of taking people out if risk management is not being utilized properly, so if I experience such thing, I will close the trade and look for another alt coin that align perfectly well with the movement of Bitcoin, so as to be on the winning side.

This strategy is not only used by you only but by many traders most especially experienced or say successful traders. As long as cryptocurrency is concerned the dominance of bitcoin cannot be overemphasized and it’s trend is what almost all the other cryptocurrencies follow. So personal when I want to carry out a day trade I analyze bitcoin first and then look at its trend and then analyze those Altcoins pairs that I am familiar. Once you get a pair having same trend with bitcoin it adds to your confluence to take that trade because it will most definitely follow the bitcoin trend. But if you have an Altcoins coin against bitcoin trend then such trades are regraded to be risky to me because it doesn’t take much of a time before they start to follow it back. In fact the only period you see an Altcoins doing a counter trade with bitcoin is when there is a fundamental news about such Altcoins


Most at times people don’t take trades that are not going same trend as bitcoin but for someone like me I still do take them most especially if there is news about the pair that’s adds to my fundamental analysis or if the trade is having a good market structure. The one thing I have is I don’t actually close a losing trade because my stop loss is the amount I can afford to lose so I have already set out that amount for anything and that gives me freedom to leave a losing trade without panic

As a trader, I use bitcoin to analyze the altcoins market. Although not all altcoins because I do check the price movement of the altcoins before trading to know if it is following bitcoin price or not. So this is specially about the coins that are following bitcoin price. I means the altcoins will go up when bitcoin is going up while the altcoin will go down when bitcoin is going down.

If you are actively trading just like me, you will notice that sometimes your analyses and predictions or speculation would be correct as bitcoin move in your direction, but the altcoins that you used to open the position is doing otherwise and not in bitcoin direction at that time. Although it will later correct itself. But when you are suppose to be making money, you are losing money. What strategies do you employ to still try as much as possible to make money?

Sometimes I still make money with averaging but sometimes I just have to close the trade when the money I used is getting too much for me the bear trading loss.