Part 4/9:
- Protect - Use stops to safeguard profits, ideally at breakeven or higher.
These guidelines reveal that while enthusiasm can drive markets, prudent risk management remains essential for long-term success.
MicroStrategy and Market Sentiment
The conversation also touched on MicroStrategy, a company heavily leveraged in Bitcoin. Pinkert described it as a mixed case of enthusiasm and risk, correlating its performance with Bitcoin's volatility. He warned that when Bitcoin prices soar, MicroStrategy's stock price often lags, signaling potential vulnerabilities within the investment model.
Parked in price action, he recommended monitoring the stock closely as Bitcoin trends upward to detect signs of divergence.