Veteran trader Peter Brandt has shared “a sacred trading rule” he uses in response to a comment about buying bitcoin as the price of cryptocurrency continues to fall. “Never add a losing trade,” he confirmed.
Peter Brandt offers trading advice
Veteran trader Peter Brandt has an exchange proposal for anyone considering buying the dip. Brandt has been a futures and FX career trader since 1[ads1]975. He is a chartist and author of Factor Report. He trades in a variety of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, US dollars and sugar.
In response to a comment on Twitter that there may be more opportunities for long-term holders to buy even cheaper bitcoin in the coming months, Brandt wrote:
A sacred trading rule I have used is never to add a losing trade.
He explained in a tweet that people said the same thing about silver futures in 1980 after it reached $ 50. “It dropped to a low of $ 3.65 and did not start up again in 24 years,” he stressed. However, the trader emphasized that he does not predict that bitcoin will follow the same path.
The price of bitcoin has fallen significantly this week, losing over 10% in the last seven days. At the time of writing, the price is $ 41,657.45 based on data from Bitcoin.com Markets.
Brandt commented on bitcoin’s breach of parabolic progress in the Bitcoin Live discussion on Thursday.
However, he tweeted on Friday: “I saw the breach of parabolic progress and commented on it in real time to members of Bitcoin Live in real time, but in retrospect I might not have taken the incident seriously enough. We’ll see.”
He followed up with another tweet. Notice that “Some people look at predictions as a” one-and-done “event [a] student of Bayesian probability. Predictions and analyzes must always change in relation to the events of the time, “he concluded:
As circumstances change, so do predictions. The parabola may not be the driving force in BTC.
What do you think of Peter Brandt’s advice? Let us know in the comments section below.
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