No Rush. Breath. New Targets on the Horizon!

• BNB (Fox): Newsletter short hit entry at 589.76 and nuked down to a local low of 545.51 for a 7.5% unleveraged move to the downside so far (ongoing)

• BTC (Fox): Telegram short hit entry at 83621.5 and nuked down to a local low of 78216.9 for a 4R+ trade setup

• OM (Fox): Telegram short hit entry at 7.61 and nuked down to a local low of 6.57423 for a 3.9R trade setup

• KAITO (Fox): Telegram short hit entry at 2.1077 and nuked down to a local low of 1.4494 for a 31% unleveraged move to the downside so far (ongoing)

Trading Like a Trader 101

Today, we’re covering how to build positions like a trader. We’ll look at:

• What you need to know before entering a trade

• How to size properly

• Scaling in and out

Entering Trades

At Weekly Wizdom, every trade we take is built on three key parts:

1. Where are we entering? (Why are we getting in?)

2. What invalidates the idea? (Where do we cut the trade if we’re wrong?)

3. Where do we take profit? (At what point do we exit?)

Without these, a trade quickly turns into gambling. A plan ensures we’re setting up for success. If things don’t go our way, no problem—we just follow the plan.

So before entering a trade, we ask:

• Why are we getting in? Maybe we’re bullish, but we might wait for a pullback if the price is at a bad spot.

• Where do we enter? Let’s say we want to buy at support because we expect a bounce. That’s our entry.

• Where are we wrong? If support breaks, we cut the trade. That’s where we set a stop loss.

• Where do we exit? If the price moves in our favor, where do we take profit? Setting this in advance keeps us from getting greedy. Usually, we look at resistance levels.

Most of the time, the best trade is no trade at all. We only want to enter when we have an edge—a real statistical reason to believe we’ll make money.

Sizing Trades Properly

Finding the setup is only part of the game. The size of our trades has a massive impact on our actual profits.

Most trades are just noise—small moves to keep us engaged in the market. For these, we risk anywhere from 0.25% to 5% of our account, depending on confidence.

But sometimes, the market presents us with a real opportunity. In that case, we go harder, risking 3-15%. These setups aren’t common, but they account for most of our profits when they do.

On August 5, 2024, I went in heavy. With a few extra trades, I managed to double my net worth on a 10% risk trade. But trades like this are rare—there hasn’t been one since. That’s why, when the moment comes, we need to be ready to strike.

Day-to-day trading is about surviving and growing steadily. But when a true opportunity presents itself, we go big.

If we call a trade in Weekly Wizdom, assume it’s a low-risk setup unless we explicitly say we’re sizing up.

Risk On vs. Risk Off

Markets change, and so does our positioning.

• Risk On: We’re in spot positions, holding coins for long-term gains and buying aggressively.

• Risk Off: We’ve moved mostly to cash, taking profits and sitting on the sidelines playing it safe.

Recently, we moved risk-off after Bitcoin hit a major resistance level. We took profits and reduced exposure.

Sometimes, things aren’t clear. That’s when we scale in and out instead of making big moves all at once.

• Scaling In: Buying in chunks when the market is dipping, but the bigger trend is still bullish.

• Scaling Out: Selling in chunks when we hit targets or the bigger trend starts looking weak.

If crypto is down 80-99%, everyone is panicking, but the macro outlook still looks good—that’s usually the best time to buy.

So when we talk about Risk On or Risk Off, we’re talking about scaling in or out—adjusting our exposure as the market shifts.

This is how traders approach the market:

• Enter only when you have an edge.

• Manage risk properly.

• Stay small when things are uncertain, but go big when the opportunity comes.

That’s how you trade like a trader—not a gambler.

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