Market threw a bit of an unexpected curveball with this sudden upward push on $ETH putting my 40x short position at a temporary -64.00% drawdown. When you are trading with high leverage, these sharp intraday squeezes can definitely test your nerves, but the broader technical thesis for a correction might still be intact. I'm leaving this open with a strict invalidation plan to see if the macro resistance holds over the next 3 days.
How do you guys handle situations where a trade goes against you almost immediately? Do you ruthlessly cut it at a fixed percentage loss, or do you step back, look at the higher timeframes, and give the asset a few days to play out its full cycle?
How do you guys handle situations where a trade goes against you almost immediately? Do you ruthlessly cut it at a fixed percentage loss, or do you step back, look at the higher timeframes, and give the asset a few days to play out its full cycle?