On the January 21 episode of Trading Pit...
(apologies on the technical difficulties impacting audio and video. We’re working diligently to correct these issues for upcoming recordings).
Account size and trading strategy: Whether to trade on-chain or off-chain is a primary consideration, regardless of account size.
Goals over account size: Instead of focusing on account size, traders should consider their goals, such as whether they want to generate monthly income, or achieve a 10x or 100x return. Smaller accounts ($1,000) may require more luck and reliance on "influencer" information.
Minimum capital for success: To be successful, traders should have at least $10,000 and invest in tooling and infrastructure.
Importance of tooling: Having the right tools for information, execution, and reporting is essential for successful trading.
Liquidity profile: When choosing assets to trade, liquidity should be a primary consideration, as well as sufficient volatility. Bitcoin (BTC) is always a good option due to its liquidity and volatility.
Capital efficiency: For larger accounts, consider capital efficiency such as using a basket of assets as collateral to trade perps and generate monthly income. Another capital efficient strategy is to use a loan from collateralized assets to invest in potentially high growth assets.
Risk management: It's important to lock in profits to compound positions and grow an account. Instead of trying to short Bitcoin, traders should consider deleveraging.
Laddering down: Laddering down is a strategy that involves breaking up a buy order into multiple orders at progressively lower prices, to manage risk and capture better entry points.
Trump Token: The launch of the Trump token was an on-chain event that attracted about 400,000 traders, highlighting the potential of on-chain trading. It also created an emotional drama for many traders.
Bitcoin outlook: Despite the recent price surge, the market is not overheated. The widely expected announcements about a strategic Bitcoin reserve did not occur, leaving many to speculate on what might happen in the coming months.
Solana surge: Solana experienced a significant increase in price and trading volume, driven by the Trump token launch. The on-chain fees also increased significantly. Solana appears primed to benefit from Trump’s push for crypto in the United States.
Ethereum weakness: Ethereum is currently struggling, with its price reaching an another low against Bitcoin. On chain fees are very low, indicating lack of demand. Staking yields have also dropped. The market isn't showing any interest in the potential for price appreciation in ETH and the increase in unlocked ETH is impacting its price.
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Disclosure Statement This content is for entertainment purposes only. Nothing shared during this broadcast is or should be considered financial advice. The views and thoughts shared here are simply opinions. Do your own research and consult a registered financial advisor before making any investments.
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