Slowly Getting Back Into Ethereum
Today, I opened up a position in Ethereum as I believe there is a possibility Bitcoin and Ethereum may be bottoming. As I mentioned in a previous blog post, we have seen some bullish divergence action in Bitcoin and Ethereum over the last week, which is often a sign of building momentum beneath the surface.
As I write this, I have no idea whether Ethereum has indeed bottomed. But what I do know for sure is that by buying at these levels with a stop loss beneath recent lows, I am entering into a low-risk, high-reward trade. Should ETH fall, I simply get stopped out. No big deal. However, if the bottom is truly in, I will profit handsomely. There really is no need to try to be perfect. At the end of the day, all we can really do is set ourselves up for high-reward, low-risk opportunities.
It is also important to note that I am slowly getting back in. It is extremely unwise to plow in blindly just because there is a chance a rally may be beginning. It really makes no sense. Instead, I try establish a position over numerous buys. Should Ethereum continue higher, I will have many chances to pyramid. Doing this slowly over multiple buy points allows me to increase my position while simultaneously keeping my risk in check and allowing the market to show me the bottom is undoubtedly in.
Full Disclosure: I currently own Ethereum.
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