This drop is very clean— the fake strength of $LUNC at the high finally got pierced through. The short was opened at 0.00008156, and it’s now been pushed down to 0.00006114, with a return of +1796.5%. The room in the market has opened up.

I had already been paying attention to this level beforehand. The price still looked like it was holding up, but every rally lacked follow-through. The key point is right here. Back then, most people were still hesitating whether to chase longs. I was focused on whether the sell pressure above would be withdrawn— it wasn’t. Instead, it got heavier the more it was pressed.

After a short position goes into profit, the biggest fear is getting emotionally carried away. The more it falls, the more you want to add— and in the end, a sudden rebound will disrupt your rhythm. On my side, I first handle most of the profits, and leave a small portion to see whether it continues probing lower. I also move the protective level down in parallel, so the profits don’t get given back too easily.

If you missed it, don’t chase shorts, and don’t chase positions on a rebound. Wait patiently for the next time to enter at a more comfortable spot.

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