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***This is not investment advice. Trading is risky. I wanted to share my strategy. Most people would probably be better off buying and holding than trading, it’s very hard to time the market. That said I find if I’m patient and wait for my opportunities this can be very profitable for me.
Let me start by saying generally speaking most people are better off just buying and holding Bitcoin and other cryptocurrencies as opposed to trading.
It’s very difficult to time the market and oftentimes when people have some success swing trading they either get cocky or get impatient thinking they need to make a trade each day or need to make so much money per day and they make stupid trades that cost them money.
Generally speaking I’m a holder, however I have a little profits and play money on the side that I don’t mind trading with. Recently this past Thursday made a Litecoin trade, bought some Litecoin earlier in the day at $79.80 and sold it at $83 a few hours later making $320 profit. I then took that money and set a very low limit order on Bitcoin which I saw falling. My limit order hit, it was a low candle wick limit order that got picked up but picked up 0.8 Bitcoin at $9500 and within an hour or two I was already up $1,000 on that. Being that we were headed into the weekend things often tend to continue to rise so rather than taking the quick profit which is sometimes smart I waited it out. When we hit $11,700 I thoguht that rise was a bit too quick too fast so set a limit order and sold.
Sure enough a few hours later this same day Bitcoin was back down under $11,000.
Utilizing this strategy I could buy back in at $11,000, although I’m going to choose to wait for it to fall a bit more which it may or may not do, however at this point I’m able to buy back in cheaper and acquire even more Bitcoin or take some profits and go back into my position.
This is risky, it’s not quite as easy as I’m making it out to be, however if you can start to read other peoples behavior and read the masses psychology towards investing you can do pretty well if you manage to be patient and only get in and out when your fairly certain you will make money.
I’m always curious to hear your guys trading strategies, predictions and altcoin picks so drop your comments below…