I spent most of today focusing on crypto and equities.
On the equities side I put trailing stops on several of my large positions, including Amazon, Tesla, NVidia and Netflix. All stops were calculated as a dollar amount equal to two percent of my total portfolio value. These positions are large enough that I don’t anticipate any of them triggering as part of any short-term movement, but they’ll serve as circuit breakers in the case of any major downturn.
I spent a good deal of time looking at all my positions and watch list, trying to see if there was anything to be gleaned from the TD Sequential setups. I’m using it as a guide, but haven’t developed any hard rules about it yet. Basically I’m looking for any positions that have moved above any sell signals, and am setting stops on those positions.
As far as crypto goes, my NEO position closed yesterday, after bag holding for almost two years I let it go at an eighty percent loss. It had a bit of a run lately, but I’m going to stick to tokens that I actually care about long-term. For that reason, I’m also preparing to unload my OmiseGo, Lisk, and Civic tokens, at some substantial losses. Also, I’ve put my Brave tokens, BAT, up as well, as its had a nice run lately. I’m almost flat on it and am holding a four-figure position on it. I’m also putting a stop limit up on 0x, which I once had high hopes for. Maybe DeFi will lead to some more growth, but for now it’s up on the block.
Since most exchanges don’t support trailing stops, I’m going to have to keep an eye on these positions, and adjust them accordingly. I’ll look for further TD Sequential sell signals, and tighten them as needed. However, I am investigating some automated tools to make this happen.
Right now I’m basically harvesting losses. I’ve used taxes as an excuse not to make any trades, but I don’t think that’s going to be a wise choice in the coming months. I might as well take some losses now and offset some of the massive gains that will be coming later on.
Speaking of massive gains, my IDEX holdings have absolutely exploded. After being underwater for most of the last year since I started staking and running a node, it’s not only recouped its value but has gained almost six times over the past month. A few days ago it was listed on Binance and shot up forty percent almost immediately. I’m in a bit of a pickle. I’m staking and earning a small reward each month as a result. But the value of the tokens has appreciated so much now that it would be irresponsible not to take action. If I move the tokens to the exchange though, I have to wait another seven days before they can stake again.
I guess in this case it makes sense to lose the stake and prepare to take profits. I have a feeling that there’s going to be a lot more gains in store for IDEX in the near future, but I need to think about protecting my capital and taking some profits off the table.
It’s a hard decision.
There are other assets that I’m delaying action on.
I considered taking some off my GBTC position off the table today but decided against it since its slightly underwater. A full sixth of my IRA is in it right now, and even the slightest movements cause oversized actions to my balance. I can only imagine how it is going to look when we get to six-figure bitcoin. I’m used to it now, and hopefully I’ll be able to stand it as we make the next leg up to new ATHs.
I’ve also made a nice sum in ChainLink, all the way back to the ICO. I haven’t touched it the entire time, but recent pullbacks are making me consider pulling it to the exchanges and setting some limits on it. Not yet though.
I have some other tasks that I can work on in the meantime to delay any overreactions. I sense myself getting a bit manic about things right now, and the last thing I want to do is pull out of too many positions. There are some tokens that I’ve been wanting to get exposure too, thinks like Comos/ATOM, REN, and ALGO, but I’m hesitant to move anything out of cold storage to take it. So I’ll have to free up some funds elsewhere. All I know is that I don’t want to touch my ETH for now.
For now I’ll put stops on these gainers, sell off the rest of my losers, and then wait for buying opportunities in the others. I’m playing with a small stack right now, and I’ll use the next few weeks to solidify my rules. And making sure that I have the discipline to stick to my two percent capital preservation rule is key.
In the meantime, I’ll work on codifying my decisions into code, and wait for the opportunities to come to me.