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Highrisk

UNIQLY (UNIQWETH) (HIGH RISK COIN)Hello folks, Here at the lovely LE CLEC CAFE. So, I got another small cap coin which I like the look of. Their roadmap looks strong, with big words like METAVERSE, POLYGON and new CEX listings to come in this quarter and early next. Higher Lows are a great sign at the moment on the daily. And a slight pick up in volume also. :) Follow my remarks on the graph for very basic ideas with timestamps etc. As always, Have an extraordinary day, ladies and Gentlemen.
U
by Euazzy
An ingeniously designed vehicle for speculationI've made a stupid amount of money in this thing since it started; so much so that it's making me question why I waste my time doing fundamental analysis on stocks, lol. Ethereum Max is an ERC-20 (Ethereum-based) token that trades primarily on Uniswap and Sushiswap. (It's also tradeable on Alt5 and HotBit.) It's only nine days old, but as you can see, it's gone nearly vertical since launch. It's the number 1 trending coin on Uniswap and has been for the last couple days. As I write this, the market cap is $800 million and there are 47,000 holders. In many ways, emax is just another s**tcoin (pardon the French). There are 200,000 of these ERC-20 coins, and there's nothing about emax's technology that makes it particularly useful as a cryptocurrency. They even did an upgrade a couple days ago that, IMO, they completely botched. But it seems to have an active developer community, out there actively marketing emax and getting it listed on new exchanges, which is more than I can say for most tokens like this. And there's one other thing that makes emax unique: it's the most ingeniously designed instrument for speculation that I've ever seen. The Ingenious Premise behind Emax Here's the ingenious premise behind emax: holders receive 2% of every transaction, distributed evenly among the holders. That means that emax owners are strongly incentivized to hold rather than sell, and it means that the tokens become increasingly concentrated in the diamond hands of the strongest holders. As a result, the circulating supply of tokens continually shrinks. Shrinking supply means that buyers are fighting over a smaller number of available tokens and are forced to pay a progressively higher price. Rising prices bring in more demand, which further drives up the price. Since the price of the last trade is multiplied over the total supply to calculate the market cap of the coin, you could easily hit a multi-billion-dollar market cap with relatively few transactions and relatively small amounts of money and tokens changing hands. Of course, you're likely to see big drops in price whenever "whales" (holders with tens or hundreds of trillions of tokens) decide to liquidate. This could increase the circulating supply very suddenly, especially if the circulating supply has gotten really low. So you're likely to see big dips as well as big gains. But the incentive system is such that even if there's a big increase in supply, it shouldn't last very long. As those 2% rewards are distributed, the circulating supply will approach zero again and the price will go back up-- assuming that buyers remain interested in the token, as they likely will for a while yet. (Beware the proliferation of emax imitators, though. There are bound to be lots of them.) I've pulled most of my early profits out, but I've still got a small position in emax and plan to buy the dips.
ELong
by ChristopherCarrollSmith
8
Mitigating High Risk Long Positions with CoveringStop losses are an, often unwelcome, but ultimately necessary and life saving tactic to day trading. When going long, setting a high stop loss can be beneficial for getting out of bad trades quickly with small losses, and opening yourself up up more opportunities for good trades. Setting a low stop loss on the other hand, can be beneficial by greatly increasing your profit. Many trades that seem bad initially end up rallying and turning profitable. Generally speaking, the lower your stop loss, the higher your percentage of good trades. The downside to a low stop loss of course is that trades take longer, locking your funds up, and what if price actually hits your super low stop loss? You've lost a super amount of money. In my trading career so far, I've preferred a low stop loss. Losing out on a good trade due to a conservative stop loss is more painful to me than the risk presented by a liberal one. But this is a high risk to accept. Losing, say, 20% of my trading capital is definitely something I want to avoid, but not at the cost of a high stop loss. So, I can hedge my position, mitigate my risk, in one of a few ways. I can open a short position when I see my long position go south. Or I can engage in Dollar Cost Averaging: I buy more as the price falls to lower my average position size and ultimately my target profit. These are good options, but come with their own side effects. Opening a short position opens you up to risks associated with a short position, i.e. price suddenly shoots up. And Dollar Cost Averaging requires additional funds to keep buying. What else can I do? Enter "Covering". From Investopedia: "To cover is to take a defensive action to lower the risk exposure of a position" The graph attached here is a demonstration of Covering (the exact spots for buying/selling were picked hastily; this example is purely conceptual and an ideal situation). The basic idea is: when price begins to fall, sell it, just like a stop loss. However, unlike a stop loss, the intention is to buy back in at a lower price when price begins to rise again. This is like dollar cost averaging, because you're, in a sense, lowering your average position size. The difference is you don't need additional funds. This is also like short selling, because you rely on the price continuing to fall, but you haven't borrowed anything in order to benefit from this fall. As you can see in the diagram, as you sell and buy back, the amount of shares/coins/whatever you can afford off your initial capital increases, thus either increasing your profit if the trade hits the profit target, or decreasing your losses if the trade hits your actual stop loss. Here's how Ive been setting up my covers: When price begins to fall, I set a conditional market sell somewhere below the nearest support. If price falls to this level, I immediately sell everything Once I've sold all my shares, I set a trailing stop loss for the cover; I generally do ~1.2%. If, after I sell, price rises 1.2%, I buy back as many shares as I can with the money I got from selling earlier. Ideally, this trailing stop falls well below where I sold. Rinse and repeat until price either hits your original take profit or your original stop loss. Some things to note. Do not buy below your original stop loss! The purpose of this strategy is to respect your original decision, not make new ones . This is meant to mitigate a high risk situation, don't expose yourself to more risk in doing so. Also, you theoretically want to buy back above your original stop loss, even if it looks like it's going to fall through. Make your own call here, but by not buying back, you've essentially just changed where your original stop loss is, and thus changed your original trade decision. Of course, nothing is without its own risks. It's quite possible that you get stopped out for a loss every time you sell, i.e. you sold, price went up, so you buy back at a higher price to stay in the trade. This will eat into your profit if the profit target is eventually hit, or simply add to your losses if the stop loss is hit. From my point of view, that risk is less painful than the risk of hitting a low stop loss without covering. You theoretically give yourself more chances of being right with these micro trades inside of your larger trade, and if you get lucky, as is the case in my diagram, you might actually profit even if your original stop loss is hit. This strategy requires attention, for sure, but if you're both strategic and lucky, you can really save yourself from the downsides of a high risk trade without adding money to the pool, or exposing yourself to short selling risk.
COINBASE:COMPUSDEducation
by tapRoot_coding
1
AUDUSD- Going for a 1:37 R/R!Hello fellow traders; time for another analysis w/ SmoothPips 🙏 If you enjoy the analysis please make sure to leave a like and follow; so we can catch these pips together! ❓ What's unique about SmoothFX? -All trades executed off of the same "strategy" -Easy to read charts -Multi Time Frame Analysis -Learn and Earn experience -Very high probability -Experienced 🎯Leave some feedback & let's chat. Always willing to hear other bias'. 📌Remember; markets are moved through liquidity. We will earn more by helping each other. 🤞Please remember not every analysis will be 100% correct. Use your own due dill & discover your own research. Sincerely, SmoothPips <3
Long
by SmoothhhPips
2