Today, I decided to exit my TON long trade, with a tiny loss, because the Altcoin is simply not moving with the same volatility as BTC, as well as showing a declining bias on its 4 hour and 1 hour timeframe:
BITCOIN
TONUSDT
As can be seen above, BTC has been pumping whilst TON has hardly moved.
Learning Point
- The importance of continuing to assess the volatility of the Altcoin that is being traded in light of Bitcoin’s price movements.
- I had to wait patiently to exit my position because I wanted to sustain as little of a loss of capital as possible. However, crucially, I only choose to wait because BTC was showing a bullish propensity at the time. If not, then I would have exited immediately, regardless of the extent of the small loss that I would have sustained as I always have a stop-loss in place.
Next Action
- Continue to monitor the price action of BTC everyday.
- Monitor the price action of ORDI instead of TONUSDT, everyday.
