How to manage your money in a way to get out of a bull traplet's say for example you bought 50 shares of BITX (bitcoin 2X bullish) on March 07, at Pivot for $45.50, and now you along with a lot of other longs are trapped.
Each time the market rallies other bulls get out at a loss on every rally. Causing another downturn.. trapping you further.
IF Your strategy is like mine so you won't close the trade in a loss, but you are wasting valuable time.
Also suppose you have 30 or 40% of your overall portfolio that is reserved for shorting.
When you take profits on the shorts, instead of saving the money for yor next short, you buy 50 more shares at the current market price of 37.
Now you can get out halfway to your original target, at $41 by selling both, at the same time. you made money on your long, enough to eliminate the loss if you sold the first lot below your original target.
In this example you can sell at $41, which is a lot easier to reach than $45 which might take another week. To determine the level you an get out simply add the two prices and divide by 2.
