Bliss
Article on surviving the dip.
Last updated
Article on surviving the dip.
Last updated
As I begin writing this article, which may well be one of the more serious and important topics for every aspiring long-term trader using PinoAPI, I take a sip of my chai tea, infused with fresh cinnamon and a dash of milk. I feel ecstatic. On my right screen, I see Bitcoin reaching new highs, and on my left, I see users making money (for some, all day). Yes, you could say I feel euphoric.
With experience over the years, I have learned that the moment you gain the most is usually followed by a moment where you could lose everything and even more (psychologically speaking). In this moment of inner bliss, where money pours into your account like water, stop. Empty your mind and focus on this article. It is very important, trust me—I know.
The moment you read this article, your mind is in a state of happiness. My goal with this article is to retain this state of mindfulness and expand its lifetime indefinitely. To achieve this, we need to downplay our expectations and face reality. The market will be here every day, and with it, there will be numerous opportunities daily. By being on the sidelines, not having your setup running, you are still positioned in a way that the volatility or any external situation cannot impact your balance.
In 2021, starting on May 9th, Bitcoin corrected by around -50% in under two weeks. Most altcoins dropped between -60% and -80% during the same period. This occurred after approximately 240 days of extremely bullish (uptrend) market conditions.
While running an Idle High setup, configured with all weight, all instruments could decrease in value down to -46% when liquidation risk is extremely likely.
In the PinoAPI community, we often refer to 'Dip Virginity'. This term is used for people who are new and are often overconfident in their setup management. Once the dip (massive correction) happens you'll know if you actually are here for the long run, or if the euphoria is short lived and you start back at square one.
Survival Cheat Sheet
When everyone is euphoric, the news headlines are about Bitcoin, and your friends who usually never talk about crypto start discussing it, you feel the stars are aligned for success.
At this point, you should either scale down your risk by 50%, or bet big but manage your risk in a way that caps the risk of ruin. You can read more about this here.
You will have more than enough opportunities to re-enter the market. When the correction occurs, most people who remain overexposed and lack money or risk management will get wiped out. Meanwhile, you will be comfortable and, at worst, end up HODLing an instrument.
Survive > Thrive.
Most aspiring traders will fail to do this, thinking they are the center of the universe and the stars are really aligned for their success. But trust me, after a few times of seeing your hard-earned money vaporize in a few seconds of extreme volatility, you'll be cured of this mindset quickly. Be different. Start today, start now. Recognize the situation you are in, act on it, and survive the next correction.
