Building positions in an uptrend GUIDE. 🧵
1. If a market has you frozen out. It's unrelenting in it's uptrend. You simply cannot find a spot to be a buyer.
Just buy it.
Natural law states that once you finally buy, the market will top and a correction will begin.
That last sentence will feel familiar, but there's truth hidden within the meme.
Very often it's our constant checking of price and way it infiltrates every waking thought that perpetuates this desire to make sure we own whatever the coin is.
So you have to buy some.
I'm not advocating that you go in with 100% of your size, it has to be very small.
What buying does is it usually relaxes you a little. It gives you skin in the game and it usually provides some breathing room because at least if price continues higher now you have a slice of that action.
What it will then do is establish the base of your position, which is important for the discussions we're about to have.
2. Being a small buyer of a market during consolidations and corrections will give you control over your positioning.
We still think about these positions as having a point of invalidation, but we're now talking very small slices of the market when it provides us with an opportunity to do so.
When markets are ranging/consolidating/chopping it's often the best opportunity to employ this tactic.
3. Smaller sizes to build a longer term position is always going to be advantageous. It will keep us in "attack mode" - it will ensure that we remain hungry for dips and we action dips in the right way (by buying them.)
When our position sizes are too large we instead get defensive and begin to close out or add shit like a trailing stop to our positions.
Small size on regular intervals when the conditions allow to build your position up piece by piece over time.
4. There will be times it feels as though the market is getting away from you. EG. You only filled for 50% and now we're rallying higher. That's fine. You have 50%. If you now begin to action on FOMO and size up dramatically you're going to offset your average entry greatly and get yourself back into defensive mode if the market turns around again.
5. TA kind of goes out of the window. We know that bullish markets can produce -30% moves to the downside. When we get situations like this it's a very good opportunity to look at being a buyer.
This can come in one blast of volatility, or this can be a market correcting over a number of days.
Regardless, they are usually opportunities, and if we think about our scaling we can be more aggressive at this points as they should offer us extreme value and be closer to any invalidation points that we may have.
6. Don't sit with your thumb up your ass if price trades 1% away from your limit buys before turning around. You have to wake up and take action.
Are you going to sit there when you're looking at a +30% upside trade and be like "it didn't fill my bids by $1 OMG!!!!!!111!1"
Look at what you're trying to achieve with your trade and if your perfect little horizontal line wasn't touched, who gives a shit, start being proactive and doing something to get exposure to your trade.
Summary:
Small position sizing
Be comfortable not being "fully sized"
Stay in attack mode
Don't make panicked decisions that will offset days of hardwork crafting a position, stop and think
-30% sell offs usually provide amazing opportunities to size up or start a position
Be active and adapt to the market
Be aware of what the targets and plans are for your position
1. If a market has you frozen out. It's unrelenting in it's uptrend. You simply cannot find a spot to be a buyer.
Just buy it.
Natural law states that once you finally buy, the market will top and a correction will begin.
That last sentence will feel familiar, but there's truth hidden within the meme.
Very often it's our constant checking of price and way it infiltrates every waking thought that perpetuates this desire to make sure we own whatever the coin is.
So you have to buy some.
I'm not advocating that you go in with 100% of your size, it has to be very small.
What buying does is it usually relaxes you a little. It gives you skin in the game and it usually provides some breathing room because at least if price continues higher now you have a slice of that action.
What it will then do is establish the base of your position, which is important for the discussions we're about to have.
2. Being a small buyer of a market during consolidations and corrections will give you control over your positioning.
We still think about these positions as having a point of invalidation, but we're now talking very small slices of the market when it provides us with an opportunity to do so.
When markets are ranging/consolidating/chopping it's often the best opportunity to employ this tactic.
3. Smaller sizes to build a longer term position is always going to be advantageous. It will keep us in "attack mode" - it will ensure that we remain hungry for dips and we action dips in the right way (by buying them.)
When our position sizes are too large we instead get defensive and begin to close out or add shit like a trailing stop to our positions.
Small size on regular intervals when the conditions allow to build your position up piece by piece over time.
4. There will be times it feels as though the market is getting away from you. EG. You only filled for 50% and now we're rallying higher. That's fine. You have 50%. If you now begin to action on FOMO and size up dramatically you're going to offset your average entry greatly and get yourself back into defensive mode if the market turns around again.
5. TA kind of goes out of the window. We know that bullish markets can produce -30% moves to the downside. When we get situations like this it's a very good opportunity to look at being a buyer.
This can come in one blast of volatility, or this can be a market correcting over a number of days.
Regardless, they are usually opportunities, and if we think about our scaling we can be more aggressive at this points as they should offer us extreme value and be closer to any invalidation points that we may have.
6. Don't sit with your thumb up your ass if price trades 1% away from your limit buys before turning around. You have to wake up and take action.
Are you going to sit there when you're looking at a +30% upside trade and be like "it didn't fill my bids by $1 OMG!!!!!!111!1"
Look at what you're trying to achieve with your trade and if your perfect little horizontal line wasn't touched, who gives a shit, start being proactive and doing something to get exposure to your trade.
Summary:
Small position sizing
Be comfortable not being "fully sized"
Stay in attack mode
Don't make panicked decisions that will offset days of hardwork crafting a position, stop and think
-30% sell offs usually provide amazing opportunities to size up or start a position
Be active and adapt to the market
Be aware of what the targets and plans are for your position
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