Turning victory into defeat!
The above statement explains a little bit how I feel about the crypto markets. Classical charting principles very reliably warned against owning cryptos in recent months. In fact, price targets generated by classical charting principles in such coins as LTC, EOS, BTC, XLM and ETH that seemed almost irresponsible have come to pass or are within arm’s reach.
Yet, there is something empty about having such dire forecasts come true. I have heard numerous horror stories ranging from senior citizens (having bought BTC near the top) losing their nest eggs to college students maxing out on student loans to load up on altcoins. Parabolic advances, once broken, leave trails of broken dreams and despair. Speculative markets are as much about an impact on real lives as they are about dollars and cents. Behind every price chart are stories of human victory and defeat.
Market speculation is dangerous business.
I teach and preach classical charting. Yet, I scream risk management and capital preservation. BTC may yet shoot the moon, but all too many tapped-out one-year wonders now lack the capital to enjoy the benefits of a new bull trend, if and when it might occur. Sad but true. During my now-44 years of trading I have heard over-and-over again that “this time it is different.” It never is. What goes up eventually comes down, humbling the proud in the process.
Classical charting principles accurately called for the price collapse of crypto markets. I have been mocked continually on Twitter for embracing the safety of the U.S. Dollar.
Yet, do I feel redeemed by these historic bear trends. Nope! I feel no pride in correctly anticipating market moves that result in the emotional and financial suffering of others, no matter how well deserved. This is how I feel about the decline in crypto prices.
(This is a short excerpt from Peter Weekly update covering the crypto space and the crash in the markets. Specific coverage of BTC, LTC, ETH, BCH, XLM, XRP, EOS. Members please login from the top right menu option.)