In July, we posted a public trading idea, which we posted on one very well-known Russian website about investments (advertising is prohibited here, so no links). Where we looked at why you should buy a CAKE coin.
At that moment, the coin cost $1.54 and in this review we wrote that we expected the price to reach $1. As a result, the coin went down to $1.05, and now the coin costs $2,488.
Those who listened and bought a coin at least on the day the idea was released at $1.54 now have more than +64% profit.
❓ What to do now?
Personally, we closed the position completely with a profit of +77%.
The logic for closing the position was as follows: After an impulse growth, the coin hit a strong resistance block, including the resistance level of $2.86. At the same time, the indicator on the weekly timeframe is almost in the severely overbought zone. And we haven’t tested the long-term moving averages from above.
From a logical point of view, closing a speculative position is a good idea, since the profit is solid. However, in fact, the current price of the coin is still cheap and it is worth continuing to hold the coin further, since such cheap prices for purchases may no longer be given. Moreover, in the event of a breakdown above the specified resistance block, the coin will fly to the $4.6 area without any problems.
Personally, we hold the coin in several of our portfolios, but in the speculative portfolio we closed the position completely.
📊 In general, if you hold a coin in the medium term, do not sell. If you are a speculator, then at least part of the position should be closed.
Personally, we will be looking for a new entry point into a speculative position, around $1.6-1.75.
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