Week 28, Trade 28 : LONG $SONIC & $SOL
📈 Week 28, Lesson 28
"Confidence is not the ability to predict outcomes, but the ability to respond to whatever happens.” – Mark Douglas
We are into Week 28 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 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!
THE DANGER OF OVERTRADING
One of the most common mistakes traders make—especially beginners—is overtrading. This happens when traders take too many positions, often driven by emotion, boredom, or the urge to recover losses quickly. While it may feel like more trades mean more opportunities, excessive trading usually leads to poor decision-making, higher transaction costs, and increased risk exposure.
Overtrading often stems from impatience or revenge trading—the desperate attempt to make back losses quickly. Instead of sticking to a well-planned strategy, traders take low-quality setups, which ultimately results in more losses. Another risk is trading fatigue, where constant monitoring and decision-making lead to burnout, reducing focus and increasing mistakes.
How to Avoid Overtrading
Stick to a Trading Plan – Have a predefined strategy with specific entry and exit criteria. Only take trades that meet your plan’s conditions.
Set a Daily Trade Limit – Decide in advance how many trades you will take per session. If you reach that limit, step away from the market.
Quality Over Quantity – Focus on high-probability setups rather than taking trades just to feel active in the market.
Take Breaks – If you feel frustrated or impulsive, walk away from the screen. Mental clarity is crucial for disciplined trading.
The best traders know that trading is a game of patience and precision, not constant action. Sometimes, the most profitable decision is to wait for the right opportunity rather than forcing trades. Remember, trading less but trading smarter leads to greater success.
🌎 Quick Macro & Crypto TL;DR
THE GOOD:
Risk-On Macro Environment: Tariffs are losing their shock value and with the FED on hold, macro conditions—supported by strong earnings and a healthy liquidity trend—are aligning for a risk-on setup.
Crypto Resilience & Safe Havens: Despite volatility in altcoins, Bitcoin holds near $95K and, along with Gold, is viewed as the ultimate escape from weakening fiat, attracting smart money and institutional backing.
Positive Growth Signals: Robust U.S. corporate earnings (especially in tech) and a rebound in manufacturing activity bolster the overall economic outlook and support equities.
THE BAD:
Persistent Inflation Pressures: Rising CPI and PPI - along with core inflation accelerating beyond estimates - pose risks of sustained higher yields, despite the Fed’s indefinite hold on rates.
Monetary Policy Uncertainty: With lingering questions around potential QE triggers (including unexpected federal DOGE cuts) and central bank hesitancy in easing policies, market volatility remains high.
Yield Squeeze & Seasonality: Falling bond yields have hurt portfolios, and as seasonal trends return, we may see yields rebound amid job cuts and waning business confidence.
THE WORSE:
Crypto Market Turbulence: Altcoins are in a deep correction amid “shitty vibes” driven by rogue meme coins and liquidity drains, while Bitcoin’s resilience is the sole bright spot in a turbulent digital asset landscape.
Weakened USD & Escalating Trade Tensions: The U.S. dollar, burdened by chronic deficits and over-borrowing, is starting to lose its safe-haven status. Meanwhile, potential reciprocal tariffs could push U.S. effective rates to 1930s levels, heightening global trade risks.
For more regular insights into macro and crypto trends, subscribe to our weekly newsletter: 5-Minute Macro and Crypto Weekly.
📈 Week 28, Trade 28 : LONG $SOL, LONG $SONIC & DEFI FARMING ON $SONIC
Trade 1: Buy $SOL
Our current trade on Solana is designed to take advantage of a rebound from the current consolidation, with multiple entry points set to optimize our average price. We’ve executed part of our position at $165, while also placing limit orders at $160 and $150, with the current price sitting at $162. This multi-pronged approach allows us to average in favorably, should the price dip further before resuming its upward trend.
Trade Parameters:
Entry Orders:
Executed Order at $165
Limit Order at $160
Limit Order at $150
Stop Loss: $120
Take Profit Levels:
TP1: $240
TP2: $280
TP3: $350
With these targets, we’re positioning ourselves for a significant run-up while capping potential downside from our approximate average entry. Given the market’s current consolidation phase and our expectation of a recovery, we believe Solana is set for a robust rally.
Trade 2: Buy, Stake, and Provide Liquidity on Sonic
In this week’s strategy, we’re capitalizing on the growing degen momentum on the Sonic blockchain (formerly Fantom). With increased TVL and a surge in bridging activity, airdrop farming season is in full swing on Sonic. Here is our detailed analysis on Sonic Blockchain
Our trade on the $S token is designed not only to capture price upside but also to unlock multiple layers of yield and incentives.
Trade Setup:
Entry: $0.52
Stop Loss: $0.40
Target 1: $1.00
Target 2: $1.50
This risk/reward profile positions us to benefit from a strong rebound while limiting downside exposure. Moreover, holding $S makes us eligible for the upcoming Sonic airdrop, with a 4x multiplier on airdrop points—an added bonus that enhances our overall return profile.
The Multi-Step Yield Strategy:
Purchase $S: We begin by buying $S at $0.52. In addition to our price targets, this position qualifies us for the Sonic airdrop, which rewards early holders with enhanced multiplier benefits.
Staking on Beets: Next, we stake our $S on Beets. Staking converts our $S into staked Sonic tokens ($stS), allowing us to earn additional yield passively. This step not only compounds our earnings over time but also signals our long-term commitment to the Sonic ecosystem.
Provide Liquidity on Shadow Exchange: With our $S and $stS in hand, we then allocate these tokens into an LP position on the Shadow Exchange.
This dual token liquidity pool is projected to deliver an impressive 63% APR yield.
Additionally, our LP participation garners a further 16x Sonic Activity Points, enhancing our rewards even more.
Why This Strategy Makes Sense:
High Yield in a Downside Market: With the broader market in a bearish phase—Bitcoin down over 6% and other majors like Ethereum and Solana trading below recent highs—investors are shifting toward stable, fee-generating opportunities. The combined yield from staking and provide liquidity on Sonic is highly attractive.
Multiple Reward Layers: Our approach unlocks several benefits: capturing price upside on $S, qualifying for a 4x boosted airdrop, earning staking rewards via $stS, and securing high APR returns plus additional Sonic Activity Points in the LP pool. This multi-layered strategy maximizes our return potential even in a risk-averse market environment.
Ecosystem Growth: As the TVL on the Sonic blockchain increases and more capital flows into bridging and airdrop farming, positioning ourselves in $S and its associated products helps us tap into the growing infrastructure and network effects of the Sonic ecosystem.
In summary, by buying $S at a strategic entry point, staking it on Beets, and then providing liquidity on the Shadow Exchange, we’re set to benefit from robust yield generation and exclusive incentive multipliers. This approach not only enhances our portfolio's passive income but also positions us to ride the next wave of growth on the Sonic blockchain.
💡 CONCLUSION
In this week's trade analysis, we've strategically positioned ourselves to capitalize on potential rebounds in both established and emerging cryptocurrencies, focusing on $SOL and $S. Our approach combines spot holdings with staking and provide liquidity to maximize returns while managing risk effectively.
Trade Highlights:
Long $SOL Spot:
Entry Points: Executed initial buy at $165, with additional limit orders at $160 and $150 to optimize average entry.
Stop-Loss: Set at $140 to mitigate potential downside.
Take Profit Targets:
TP1: $240
TP2: $280
TP3: $350
Long $S Spot with Staking and Provide Liquidity:
Entry: Purchased $S at $0.52
Stop-Loss: Placed at $0.40 to protect against adverse movements.
Take Profit Targets:
Target 1: $1.00
Target 2: $1.50
Yield Enhancement Strategy:
Staking on Beets: Converting $S to staked Sonic tokens ($stS) to earn passive rewards .
Provide Liquidity on Shadow Exchange: Providing liquidity in the $S-$stS pool to earn an estimated 63% APR .
Airdrop Participation: Engaging in the Sonic Points program to accumulate points for potential future airdrops .
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.
⚡️ Interested in Sponsoring This Newsletter?
If you'd like to sponsor, feel free to send me a DM on Twitter: @HashtalkSankalp or simply reply to this email.
I’d really appreciate your support—consider following me on Twitter to stay updated on my journey!
💬 Check Out My Telegram Channel!
I’m excited to share that I've a Telegram channel where I share a variety of interesting content related to crypto and macro topics—tweets, threads, podcasts, articles, trades, and more.
Join the conversation here: Hashtalk By Sankalp . Looking forward to seeing you there!