Thread by @classicmacro

This is how noobs do it:

#1 wait for bitcoin price to go up a lot
#2 feel FOMO
#3 look at underperforming assets for something to buy
#4 ignore that price is going down for a reason
#5 buy some garbage
#6 then bitcoin corrects and garbage drops even more

Always the same.

This is how pros do it:

#1 identify winners
#2 wait patiently for a correction
#3 buy the winners whenever a correction comes
#4 weather the storm
#5 see prices go up and profit

Not difficult. Just need to be patient and wait for the opportunities.

That applies to technical trading whenever the trader has no fundamental/informational edge. In those cases, best to focus on buying the winners on corrections and exercise patience. Corrections always come. Regularly.

Shortcut:

Bitcoin funding negative => market is bearish and positioned defensively. Green light to consider shopping around.

Bitcoin funding positive => market is bullish and positioned aggressively. Not best time to shop around.

It's much more nuanced than that, but that's a start. Ideally would also be looking at the basis at different tenors, volatility, and volume in an effort to time entries where longs are getting liquidated.