BIGGEST Crypto Liquidation TO DATE - Market Corrects

Oct 13

Today and yesterday over the past few hours, $19 billion dollars was wiped out in crypto. This is historic. And also a lesson in risk management, an eerie reminder of how risky speculation can be.

The market was over leveraged, and this is the result.
How can we monitor/ safeguard against this going ahead and be prepared for such an event in the future?

1) Always use a stop loss
2) Watch Bid/Ask spread and volatility
3) Use proper risk management

On the 10th of October, POTUS Donald Trump Tweeted about a new set of trade measures that include 100% tariff on certain Chinese exports, and new stricter export controls. The market immediately reacted; stocks and commodities dropped and crypto fell into chaos. What made this worse is that several exchanges were down, resulting in investors being unable to close or update their positions.

It seems like a fitting "reason" and also not, oddly. What we need to note here, is that the market was over leveraged. This is a self-correcting event that presents truer market reflections and better prices for investors - a blessing for those who were not affected/invested.

As an extra measure if you trade S&P500, you could watch the VIX - and set an indicator to any daily change greater than 15%-20%. This way, you'll be notified if there's action in the stock market.


You can also take a look at this idea on Risk vs Reward:

Oct 14

Note

Just a note, BTC in the 4h is now trading UNDER the moving averages, signaling short term is BEARISH: