Week 21, Trade 21 : LONG $ENA, $HYPE, $FTM
📈 Week 21, Lesson 21
“When you genuinely accept the risks, you will be at peace with any outcome.” Mark Douglas
We are into Week 21 of the Fifty Two Trades in Fifty Two Weeks. Thank you for reading.
“The 52” deep dives into one trade every week, targeting traders with zero or little trading experience. But I hope that my pro trader friends find this as useful. For details on why I am doing this and who is this for, please read the About section on top, which I will update from time to time.
Most trades that we take will be medium (3-4 weeks) to long term in nature. We might do some swing trading here and there if opportunity presents, but always with proper risk management. After all, our purpose is to make money, not lose sleep over it.
You can track our trades and progress live here at this Link
Over 10 years in banking and now 12+ years dealing with nuances of crypto, I have learned some very hard lessons. I intend to share them transparently as we go. More importantly, please keep the comments and feedback coming, so I know we are on the right track together.
📊 Portfolio Update - Open Trades
We Are Back With a Bang!
In the past two weeks, Bitcoin has made history, consistently surpassing previous all-time highs. This week, it reached an impressive milestone of $108K before sharply reversing course, dropping to $92K. This dip presented a prime opportunity to deploy more capital ahead of what’s expected to be another rally in the new year. The market has already bounced back from this correction, with $BTC now recovering to $98K. Despite the explosive growth we've seen in November and early December, we believe the real "Valhalla zone" is still ahead. This is where we expect the market to truly take off, with the bull run reaching its peak and more parabolic moves likely on the horizon.
Despite the intense market action we've seen so far, we are proud to announce that we’ve generated returns of over 318%, which, when annualized, translates to a staggering 675%. While December has been slightly less electrifying compared to November’s momentum, our portfolio continues to outperform.
It's worth highlighting that we’re still comfortably beating the benchmark returns of the Big 3 – Bitcoin, Ethereum, and Solana – positioning us ahead of the curve as we head into the final stretch of the bull market. Our ability to navigate through both the highs and the occasional cool-offs has allowed us to maintain our edge, and we remain optimistic about what’s to come. The weeks ahead could be a turning point, and we're prepared to seize the full potential of this market as we edge closer to the height of the bull run.
Now before we dive deep into the trade of the week, let’s take a closer look at our open positions:
Portfolio Update:
We continue to navigate the market cautiously, balancing between risk and reward. Stay tuned for more updates as we adjust our positions based on market conditions.
We’ll continue to monitor the open positions closely and adjust as needed to navigate the range-bound market effectively. Stay connected on Telegram for real-time updates and insights.
If you have any questions, ideas, or feedback, please feel free to DM me on Substack or Twitter, Let's continue to navigate the market together!
TRADE MANAGEMENT: THE BRIDGE BETWEEN ANALYSIS & EXECUTION
Trade management is one of the most psychologically challenging aspects of trading. It’s often overlooked, as social media and trade recaps rarely show the decisions made during the trade itself. However, trade management is the critical link between a solid trade idea and actual profit realization. Without proper management, good trades can quickly turn into losses or underperform.
At its core, trade management requires constant reassessment of the evidence supporting your position. Whether the market is reacting as expected or not should guide your decisions, not your emotions or PnL (Profit and Loss). It’s essential to focus on the process and let the technicals, rather than the emotional attachment to your entry price, dictate your actions.
Key points for managing trades:
Trade the chart, not your PnL: Focus on the technical structure, not how much you’re making or losing.
Reassess price action: Continually check if the market is moving as expected. Is price breaking key support/resistance levels or following your technical structure?
Manage both sides of a trade: Don’t just lock in profits—also mitigate losses before hitting stop loss orders, as consistently reducing full-stop losses can significantly improve your equity curve.
Time-based management: If the market isn’t moving as anticipated within the expected time frame, consider exiting even if price hasn’t hit your stop or target.
In the long run, good trade management isn't just about securing profits—it’s about minimizing losses, maintaining emotional discipline, and sticking to a replicable, evidence-based approach.
Successful traders focus on process over outcome and understand that the market doesn’t care about their PnL, but their discipline to the system will yield consistent results.
🌎 Quick Macro & Crypto TL;DR
THE GOOD:
Nasdaq Hits Record High: The Nasdaq Composite crossed 20,000 for the first time, driven by growth in Tesla & Alphabet, showcasing strength in high-growth sectors despite broader market declines.
European Rate Cuts: The ECB and SNB both lowered rates to stimulate struggling economies, signaling a proactive approach to addressing growth concerns.
Japan’s Economic Optimism: Stronger-than-expected Q3 GDP growth (+0.3%) and improving BoJ Tankan sentiment hint at a potential rate hike in January 2025.
THE BAD:
U.S. Inflation and Labor Weakness: Core inflation stayed sticky at 3.3% YoY, with rising unemployment claims highlighting labor market softening, despite the Fed nearing another rate cut.
UK Economic Contraction: The UK economy shrank by 0.1% in October, following similar declines in September, with falling industrial production adding pressure on policymakers.
China’s Economic Underperformance: Despite announcing fiscal policies, China's sluggish demand and subdued inflation and trade performance dampened investor sentiment.
THE UGLY:
Global Geopolitical Uncertainty: Looming U.S. trade policies could disrupt global supply chains and raise consumer costs, adding to global trade concerns.
For more regular insights into macro and crypto trends, subscribe to our weekly newsletter: 5-Minute Macro and Crypto Weekly.
📈 Week 21, Trade 21 : LONG $ENA, $HYPE & $FTM
Following the recent 25bps rate cut by the FED, the market's reaction was swift, with a sharp drop of over 2% in the NASDAQ as the Fed maintained a hawkish outlook despite the cut.
The crypto market, also took a hit, but as the old saying goes, "buy when there's blood in the streets." These moments of fear often present the best opportunities to secure profitable trades.
With that perspective, we're positioning ourselves to capitalize on the current market dip by locking in some strategic entries. Below are our trades of the week:
TRADE 1: BUY $ENA & STAKE IT
WHY $ENA?
In the ever-expanding cryptocurrency landscape, stablecoins serve as the foundation of the digital economy. AllianceBernstein, a leading asset management firm with $725B in AUM, projects the stablecoin market cap to reach $3T by 2028—a 15x increase from its current $200B. This positions stablecoins as a critical growth opportunity.
USDe by Ethena is reshaping stablecoins by offering a crypto-native, censorship-resistant solution built on Ethereum. Through delta-hedging stETH collateral, Ethena delivers stability and scalability in a truly decentralized manner.
BENEFITS OF STAKING $ENA:
sENA serves as the liquid receipt token for locking ENA and is composable throughout a wide range of DeFi apps.
sENA itself will earn rewards, initially receiving unclaimed $ENA from the season 2 airdrop distribution.
Additionally, sENA now earns rewards for Ethereal. The Ethereal team committed to giving sENA holders 15% of any potential future token supply.
TRADE SET-UP:
Entry Price: $0.91
Stop Loss: $0.75
Take Profit: $3.00
Additionally, by staking $ENA, we aim to benefit from both their upcoming airdrop and potential future airdrops from Ethena’s partners, such as Ethereal.
TRADE 2: BUY $HYPE
WHY $HYPE ?
$HYPE offers advanced tokenomics and a fast-growing ecosystem with a vibrant community that makes it a standout in the crypto space.
Advanced Tokenomics:
Scarcity: Continuous token burns steadily reduce the circulating supply, creating upward price pressure.
Utility: As the Hyperliquid ecosystem expands, so do the use cases for $HYPE, driving demand.
Ecosystem Expansion:
Hyperliquid is more than just a DEX—it is fostering a robust, crypto-native ecosystem that offers early adopters prime investment opportunities. Much like Solana in its early days, Hyperliquid is attracting developers and projects, accelerating its growth.
Community Strength:
The community-driven growth, supported by airdrops and strong incentive programs, has created sustained momentum. The organic hype around $HYPE is likely to fuel long-term engagement
TRADE SET-UP:
First Entry
Entry Price: $9.56
Take Profit: $50
Since its launch, we’ve been closely tracking $HYPE. We shared initially this in our TG group. and our conviction has continue to grow on $HYPE so we ended up taking another position on $HYPE.
Second Entry
Entry Price: $23.22
Take Profit: $50
The main reason for the second entry was seeing the growing mind share into $HYPE and with the decreasing mind share in $SOL, we decided to move some our $SOL positions into $HYPE. And if there are any dips $HYPE they are there to be bought.
TRADE 3: LONG $FTM
With the Sonic launch in December we took our profits, but with the pullback market in the last 2 days we took few more positions as we are still bullish on the overall FTM ecosystem.
TRADE SET-UP:
Entry Price: $0.89
Stop Loss: $0.60
The market dip has created significant pullbacks, offering prime re-entry points. And we have curated our watchlist and we would be looking to take a few trades in the following tokens:
💡 CONCLUSION
In this week’s trade recap, we’re going Long on $ENA, $HYPE & $FTM along with a watchlist of a few tokens we are tracking.
Trade Highlights:
Long $ENA Spot: Entered at $1.03 and staked it to earn additional rewards
Long $HYPE Spot: Entered at $9.56 and $23.22
Long $FTM: Entered at $0.89
Stay tuned for more updates and insights! You can track all our trades here.
Now go grab a coffee and please DM for any questions. Keep in mind, this is NFA and DYOR.
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