FAQs Frequently Asked Questions
Crypto Report
Are your emails on specific cryptocurrencies meant as informational or as an entry point? What about when to sell?
All reports sent from our website are meant as informational. A report could be actionable if it suits one's risk tolerance levels which would be determined by many factors such as 1) portfolio exposure, 2) maximum loss permitted, 3) position sizing, etc.
If we see a stock or a cryptocurrency that is worth watching, we will send out a report. Of course, as we have stated here and in our numerous publications and appearances, one must understand their personal risk tolerance levels before investing any money. As Ed Seykota has always said, the 3 most important rules in investing are 1) risk management, 2) risk management, and 3) risk management.
With cryptocurrencies, the volatility far exceeds most anything when compared with stocks. Thus one must be that much more aware of when to buy and when to sell. The chart pattern obviously helps one keep their losses manageable. But it is also important to know that since cryptos tend to swing widely, one could easily get stopped out prematurely if one is not in tune with the volatility of a specific cryptocurrency.
One's sell stop in cryptos will be determine by that person's risk tolerance levels. One must study the chart to understand where to place their sell stop. Some adopt a short-term approach of taking quick profits though this is fraught with minefields as discussed here. Others may use a longer term approach using logical moving averages as well as areas of resistance and support to guide their trading. That said, on occasion when I see a major sell signal in a crypto name, I will send out a report to members.
Note that when it comes to losses, percentage loss can be mathematically illusory. For example, a crypto that lost -90% off its peak is still far better than one that lost -95% off its peak. This does not mean the one that fell -95% is only 5% worse than the one that fell 90%. In these two examples, $1 becomes 0.10 or 0.05. In other words, the crypto that lost -95% would have to double in price to now 'only' be down -90%.
Many cryptos in the cryptowinter of 2008 lost 95% or more of their total value. Even the juggernaut Ethereum lost -95% peak-to-trough. The best ones have moved higher by 4-fold or more off their lows. So a crypto that lost 95% of its value then quadrupled in price off its low is now only down -80% off its peak. While this still sounds tragic by stock standards, these are not stocks, thus must be treated as such.
Everything is relative within its own group. Cryptos should thus be measured against other cryptos.
If we see a stock or a cryptocurrency that is worth watching, we will send out a report. Of course, as we have stated here and in our numerous publications and appearances, one must understand their personal risk tolerance levels before investing any money. As Ed Seykota has always said, the 3 most important rules in investing are 1) risk management, 2) risk management, and 3) risk management.
With cryptocurrencies, the volatility far exceeds most anything when compared with stocks. Thus one must be that much more aware of when to buy and when to sell. The chart pattern obviously helps one keep their losses manageable. But it is also important to know that since cryptos tend to swing widely, one could easily get stopped out prematurely if one is not in tune with the volatility of a specific cryptocurrency.
One's sell stop in cryptos will be determine by that person's risk tolerance levels. One must study the chart to understand where to place their sell stop. Some adopt a short-term approach of taking quick profits though this is fraught with minefields as discussed here. Others may use a longer term approach using logical moving averages as well as areas of resistance and support to guide their trading. That said, on occasion when I see a major sell signal in a crypto name, I will send out a report to members.
Note that when it comes to losses, percentage loss can be mathematically illusory. For example, a crypto that lost -90% off its peak is still far better than one that lost -95% off its peak. This does not mean the one that fell -95% is only 5% worse than the one that fell 90%. In these two examples, $1 becomes 0.10 or 0.05. In other words, the crypto that lost -95% would have to double in price to now 'only' be down -90%.
Many cryptos in the cryptowinter of 2008 lost 95% or more of their total value. Even the juggernaut Ethereum lost -95% peak-to-trough. The best ones have moved higher by 4-fold or more off their lows. So a crypto that lost 95% of its value then quadrupled in price off its low is now only down -80% off its peak. While this still sounds tragic by stock standards, these are not stocks, thus must be treated as such.
Everything is relative within its own group. Cryptos should thus be measured against other cryptos.
| First published: | 29 Apr 2019 |
| Last updated: | 30 Apr 2019 |