Couple More Liquidations, Then Up Only?

We pride ourselves on never being dogmatic and always being open to any scenario.

What often marks a great technical analyst is the ability to choose to be objective and not letting emotion get in the way of analyzing money flow.

And we all have that choice.

We can be driven by an immediate emotional response and gather into an angry mob over the injustices of the FTX situation.

Or we can take responsibility for our own self-interest and continue to look for opportunities as they come.

It's hard not to feel like an asshole as I write this. But your only objective here is to make money. If you're a trader, you're not here for some greater good.

Now, to be clear, I in no way celebrate these misfortunes. Financial markets are brutal, and there’s nothing worse than the guy getting off on people blowing up.

But it’d be a terrible shame to walk away from this institutional crypto contagion without taking some lessons.

We’re all human beings.

None of us is infallible.

Markets like these remind us of the importance of risk management, which is so easily forgotten in the good times.

There’s such strong conviction in crypto, and there’s little room in the middle.

Ask Ethereum believers and they’ll say Solana’s going to zero. Hardcore libertarian Bitcoin maxis think everything but Bitcoin is going to zero. Ripple believers think it’s going to a million.

You see it all the time.

But this kind of conviction is often the undoing of traders and investors, both in crypto and legacy. Conviction, when strong enough, can cloud the commitment to risk management.

That’s what we’re seeing in real time.

This game is brutal, and sometimes that means leaving compassion at the door. We're here to make money. It's a zero-sum game, and we need to benefit from the misfortune of others.

They say you shouldn’t kick someone when they’re down. But that’s usually the best time to act.