# 43 - Journey into Crypto Day trading

By [💯⚡️🧙‍♂️🪞](https://paragraph.com/@0x360e0f214cf6f9e917781083705a7f64cad03326) · 2024-07-29

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Today I got wrecked trading BTC perps on Hyperliquid. I’ve been learning more about day trading and TA such as the MA, RSI, and Volume gauges to measure the market in anticipation of price action. However, I am humbled by the fact that BTC is still held by a small group compared to traditional financial instruments. I was trading and was in the zone making profits until a sharp drop occurred. I was unadaptive and thought it was simply a passing impulse so I stayed in. I later learned that this FUD was due to the news that the US government moved some of their assets seized by an FBI case on Silk Road a decade ago.

When I read that my first thought was damn, paper hands everywhere, and this too shall pass in this bull market. But I then thought further and came to realize it was I who was the amateur for holding the bag when such volatility occurred. Like when an earth wake hits - you don’t stay inside and fight larger forces, but you drop everything you’re doing and get to safety.

I’ve been using order limits for the upside but I now see I have to place order limits for the downside as well.

another misinterpretation of data is the market environment on Bisq. There is currently a large wall of sellers at 72K, with few buy orders. I interpreted that in the morning that this is a resistance level. This can be true but another note is the lack of buyers means that when an extrisic event occurs like today there will be little to save the falling knife. I have more to learn about data interpretation.

Another data point is the funding rate. In understanding after searching what this is is that if it is positive long positions pay for their positions and if it's a negative rate then its shorts have to pay to the long position. This morning I saw that it was at the 0.01 mark and later this evening as I write this it stands around 0.006. This measure meant with the help of the greed fear gauge I can interpret the general mood of the market participants on whether it’s bull or bear.

Next onto strategy. I finished reading the Hyper Liquid docs and saw that there is a higher fee for market buy/sales compared to the fee for market limit orders. this is the same with Bisq and the rationale is that there is an intrinsic risk in putting yourself out there without a guarantee that there is a counterparty to trade on your offer. With the fact that currently, it's a bull market, I think it's a strategy I am willing to pursue to go short on day trades as I am always paying less fees than the general crowd to be a market partcicpant. As WB says, be greedy when others are fearful and fearful when others are greedy.

I will keep my position open with a stop limit to not get liquidated, and in the morning after I am well rested will decide if I should cut my losses or take a time out and let the market readjust to the news.

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*Originally published on [💯⚡️🧙‍♂️🪞](https://paragraph.com/@0x360e0f214cf6f9e917781083705a7f64cad03326/43-journey-into-crypto-day-trading)*
