stop trading asset A because of what asset B is doing
otherwise:
- you’ll look like a fool calling for new ATHs in February - September of 2024 on Bitcoin, while we ranged/downtrended as stocks rallied into price discovery continuously during that time
- you’d call for “time to rotate. it’s lagging!” for 3 years straight as Ethereum underperformed the market, just because Bitcoin made new ATHs several times
- say you’re trading altcoins instead of Bitcoin because “the gains are better,” only to close positions the moment Bitcoin shows relative weakness (which means your alt is showing relative strength — the only reason to trade altcoins in the first place). closing that position is contradictory; your entire reason for being in alts was because they move more than BTC. if you exit just because Bitcoin dips, you’re basically choosing to hold the higher-beta asset only during selloffs, which means you’re just magnifying losses without ever realizing the upside
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trade asset A because of what asset A is doing
stop trading asset A because of what asset B is doing
otherwise:
- you’ll look like a fool calling for new ATHs in February - September of 2024 on Bitcoin, while we ranged/downtrended as stocks rallied into price discovery continuously during that time
- you’d call for “time to rotate. it’s lagging!” for 3 years straight as Ethereum underperformed the market, just because Bitcoin made new ATHs several times
- say you’re trading altcoins instead of Bitcoin because “the gains are better,” only to close positions the moment Bitcoin shows relative weakness (which means your alt is showing relative strength — the only reason to trade altcoins in the first place). closing that position is contradictory; your entire reason for being in alts was because they move more than BTC. if you exit just because Bitcoin dips, you’re basically choosing to hold the higher-beta asset only during selloffs, which means you’re just magnifying losses without ever realizing the upside
hope this helps🖤