Reputed silver-tongued analyst takes profits and hedges trading.
He explains his reason to take profits and how to make a fair hedge trading.
An unexpected market state may arrive due to possible conflicts or war on the horizon.
The crypto market is an ever-changing force where a simple political announcement or economic shift could make or break one’s fortune. One reputed silver-tongued analyst takes profits and hedges trading as he shares the latest crypto market forecast. To highlight, he takes the latest possibility for a wind of change in the air to make a risky market move, ensuring the survival of his profits in the coming days ahead.
Silver-Tongued Analyst Takes Profits
As the prices of Bitcoin and Ethereum climb higher and hold steady, one reputed silver-tongued analyst, Doctor Profit, known for his many accurate predictions, observes a political move that could greatly influence the crypto market in the coming days ahead. In detail, Doctor Profit reveals that he has taken full profits from his $77,000 BTC long trade he made earlier in the year.
https://twitter.com/DrProfitCrypto/status/1932908081635315983
As we can see from the post above, Doctor Profit reveals the reason behind why he took profit now, and the main reason is tied to the fact that the US has started to evacuate from the Middle East, meanwhile oil prices are going up. With this move, he urges traders to forget all indicators on the BTC price chart and to focus on the latest developments.
He says that the real world has spoken, and is ringing alarm bells. Thus, he concludes that it is crucial for everyone to protect their capital at all costs, which led to his decision to take all profits. For now, he says that his strategy is a hedge short. This strategy, he calls a golden rule and trading and goes on to explain how it could save one’s capital in an uncertain market, as we may be entering now.
Analyst Explains Hedge Trading to Mitigate Risks
https://twitter.com/drprofitcrypto/status/1932909925744963773
As he goes on to explain in the post above, he shares an example for hedge trading, in this case with a $100,000 BTC spot trade. By opening a $10,000 short position with 10x leverage, one’s Short position now equals $100,000, the same amount as their spot holdings. This gives them a 100% hedge ratio, effectively protecting both sides during highly uncertain times.
If, he explains, for any reason, the $10,000 short gets liquidated due to a 10% price increase, calculate the result on your spot bag where the spot position gained $10,000 while the short lost $10,000. This leads to a net result that breaks even, giving traders the chance to make their next strategic move. He confirms that this type of trading is only recommended during extreme uncertainty, or when war is on the horizon, and has always pulled through for him.
