Revisiting Leveraged Longs On Solana, Matic & Cardano
Multi-Faceted
When it comes to bull market strategies, I always aim to have as many irons in the fire as possible. This is also in terms of various strategies. The HODL approach is simply one expression and can yield enormous returns. However, there are many other strategic approaches an investor can initiate and deploy. It’s with this in mind that I posted this article in September of this year, regarding leveraged positions.
When it comes to this particular strategy, my altcoins of choice are all blue chips. Solana, Matic, and Cardano are the coins I have chosen to build my leveraged positions. The leverage being used is 10X, which would ultimately create a 300X return on a 30X bull market pump. However, that is only applicable from the base. My strategy, however, incorporates a “slow” building process over an extended period.
In other words, these positions will primarily be built over the next year or so. I will look to exit these positions once a topping-out structure is in place, or I am strongly convinced that the top is in. Building my positions over time is a key aspect of this particular strategy, and unfortunately, cannot be compromised. I recently mentioned that I wanted to add ChainLink to my list.
Unfortunately, I have not done so as of yet. I say unfortunately because LINK has rallied 44% over the past 7 days. My main focus is however Solana, and I began building positions at approximately $20 a few months ago. SOL is currently trading above $30, which is a great buffer for a foundation established at $20. Once again, the aspect of patience and disciplined deployment of capital are imperative.
I will look at adding to my Solana position on the next correction. It doesn’t matter much if the market moves higher first. It simply solidifies my foundation. When you consider that there are approximately 700 days to go before the market tops out, patience and risk management transfigure into wisdom. Furthermore, the aspect of 10X leverage more than compensates for it, while simultaneously incorporating risk management.
It’s All About Compounding
This strategy is centered around compounding and is a lot more powerful than many realize. When you consider that these positions are increasing over time, in an appreciating market, and then being multiplied by 10… it begins to hit home. A modest investment can produce significant returns and is one of the best ways to harness the power of a bull market. That being said, there needs to be a knowledgeable level of application.
Positions are not only increased but also protected. The unskillful trader will not factor in the prior aspect of this strategy, but will only look at increasing his position size, as he sees it growing in value. It’s not only that investors and traders exclude risk management… they don’t know how to apply and appropriate it. Unfortunately, the majority of traders are happy to leave it at that.
This is why many go on to repeat the same destructive behavior over and over again, despite their intentions to avoid the mistakes of the past. Here’s a bit of a “rude” awakening:
If your knowledge regarding markets, risk management, and technical analysis has not increased since your last performance you will most likely repeat the same mistakes.
Somehow people tend to believe that “making money” is void of these dynamics and laws. When, in reality, they are more important here than in many other areas of life. Compounded knowledge results in compounded returns. It’s that simple.
Final Thoughts
In a similar way that shorting with leverage was the appropriate course of action in 2022, going long with leverage is a solid strategy for 2024. However, this has to be accompanied by experience and a solid skill set. The idea is to spend years perfecting your skill set so that you are prepared and ready to act when the opportune time arrives. Those who refuse to travel this path enhance the profitability of those who do.
Are you prepared for this bull market, or are you merely an opportunist looking to get rich quickly? Either way, the market will separate the wheat from the chaff. It always does, and always will. The publications of Sapphire Crypto over the years have been that of preparation. I have avoided imparting what people would like to hear, in favor of what they need to hear. A thinking person will soon realize this to be a counterintuitive move… in terms of content creation.
I don’t buy into the hype. I don’t write about what is trending, but rather what will eventually be trending. The time has come to apply what has been addressed (at length) over the years. To the dedicated and disciplined, I wish you well. Let’s make this one count. See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
So good tnx bro