2024.1.9 Funds: 10647U
Big drop arrives: Panic spreads, exit tide emerges
Yesterday, many cryptocurrencies had already dropped back by 20-30%, and once again, they are probing lower! There should be a lot of liquidations; Buffett once said: When others are greedy, I am fearful; when others are fearful, I am greedy.
In this market situation, I have assessed comprehensively that I still haven't stopped the program from continuing to add positions, hoping that the decisions I make are correct. Currently, although the position is relatively heavy, it is the same situation as being stuck in a short position from the past two days; all that is needed is a small rebound to make a profit and exit.
Currently holding positions are mainly ORD/USDT and BOM/USDT, and the additional position has reached the limit, which is the maximum amount allowed by the program; the program will not automatically add positions anymore. XRP and ENS have already exited with profits during the rebound.
XRP's short position is also gradually starting to become heavier; at this time, having one or two cryptocurrencies open in the opposite direction of heavily invested cryptocurrencies doesn't really matter, as it is effectively a risk hedge. There are cryptocurrencies to profit from on the way up, and also on the way down.
Trading is about continuously obtaining profits.
Speaking of copy trading, the number of participants has dropped quite a bit. Many people have exited due to losses, which may be due to stop-losses or liquidations. Last night, the maximum drawdown was around 9%; if the margin is sufficient, setting the leverage to *10 would not lead to liquidation.
Only small funds have been liquidated, as they had already fully invested early in the downward process and then couldn't add positions afterwards, leading to final liquidation and exit, which is a very unfortunate situation. Therefore, I have emphasized multiple times in my diary that small funds should not participate in copy trading, and I will emphasize it again today.
The subsequent market situation may quickly welcome a rebound, or it may continue the downward trend; both are possible. Currently, the margin ratio for the decline is still not very risky, so maintain patience.
The market rewards those who are patient, not those who are eager for quick results.