Potential short term downside. Personally I plan to hedge out the difference since I had a relatively reasonable entry. Of course I keep a rather wide stop (given the relatively small size of my position) a bit bellow Time Weighted Average Price (TWAP; lowest plain line).
That would be the worst case scenario, my entry and long position is based on qualitative (bottom up) analysis. The stop is still, in my opinion, necessary as if the the price breaches far below that my position wouldn't make any sense on any time frame below 3 years.
Please note that the arrow is just there to illustrate the potential downside I plan to hedge against. It's not a price prediction, I can't see the future.
My short term goal at any given point is always to limit the risk and protect profits. The money will just show up if I'm consistent.
