Veteran trader Peter Brandt has shared “a sacred trading rule” he uses in response to a comment about buying bitcoin as the price of the cryptocurrency continues to fall. “Never add to a losing trade,” he affirmed.
Peter Brandt offers trading tips
Veteran trader Peter Brandt has a trading suggestion for anyone considering buying the downside. Brandt has been a career futures and currency trader since 1975. He is a chartist and author of The Factor Report. It trades a variety of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, US dollar, and sugar.
Replying to a comment on Twitter stating that there may be additional opportunities for long-term hodlers to buy even cheaper bitcoin in the coming months, Brandt wrote:
A sacred trading rule that I have used is never to add to a losing trade.
He explained in a tweet that people were saying the same thing about silver futures in 1980 after it topped $50. “lt then sank to a low of $3.65 and did not start back up for 24 years,” he stressed. The trader clarified, however, that he is not predicting that bitcoin will follow the same path.
The price of bitcoin has fallen significantly this week, losing more than 10% in the past seven days. At the time of writing, the price is $ 41,657.45 based on data from Bitcoin.com Markets.
Brandt commented on bitcoin’s violation of the parabolic advance on the Bitcoin Live discussion Thursday.
However, he tweeted on Friday: “I saw the Parabolic Advance violation and commented on it real-time to Bitcoin Live members in real-time, but looking back I may not have caught. the event seriously enough. We will see.”
He followed up with another tweet. Noting that “Some view predictions as a ‘one-and-done’ event. I am [a] student of Bayesian probability. Predictions and analysis must always morph relative to the events of the time,” he concluded:
When circumstances change, predictions must change. The dish may not be the driving force behind BTC.
