Day Trading in cryptocurrency
Warren Buffet is a well known proponent of buy and hold.
when it comes to cryptocurrency , the volatility is so tempting and its easy to want to make quick gains. However it's very important to do things in moderation and remember that the market remains unpredictable. one very important thing to remember everytime we sell a position is that we are giving up a potentially lower buying price. when we buy back in future we have to potentially wait longer to double our capital.
One has to have a strategy for trading. its best, in my opinion to hold about 80% for the long term and day trade with 20% if you must.
I personally have not day traded with cryptos so far, however when the futures market open i might join in the fun.
A co-worker of mine whom i introduced to cryptocurrency has no experience in trading and is into day trading already and i feel bad every time he looses money on an investment. He occasionally sell at a loss because he thinks he missed out on a bull market, but i tell him when the market has stayed red for long enough that he gets scared, that is usually the best time to buy. There was also a time when he sold his 10 bitcoin cash after about 3 weeks of holding and missed the huge run up in prices. He is so impatient and his excuse is he gets bored. I just told him to not blame me if anything goes wrong with his money.
#daytrading #bitcoincash #cryptocurrencies #WarrenBuffet
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I always thought Warren Buffet stayed away from Cryptocurrencies. Has his stance changed?
I was talking about holding investments for the long term, whatever it might be.
Ah I see. Thanks for the clarification. And I agree/use that strategy for the most part with my investments
I do too as well, but some people get into investing without a strategy, especially when they see so much volatility like in cryptocurrencies, its easy to want to make risky moves out of greed that can potentially cause you to loose alot.
Spot on. People can see this as a get rich quick scenario (which it can be), but they don't realize that it's basically gambling at that point.
I've found that when I find a coin I like, best strategy is to dollar cost average my way into it and hold on for the ride.
Personally i only "gamble" with like 10-20% of my investments, maybe less and only when i find a coin with really good potential. for example when bitcoin cash first came out i took a chance and i sold some of my long term investments to get in on it, and i plan to hold it for a long time.
Good for you! I'm trading with <5% of my portfolio which is currently sitting happily in STEEM right now.
I’m no trader. I’m a buy and hold kind of guy.
I sold a decent portion of my Bitcoin a month ago. I just thought it was time to pocket some profits. It’s sure looking like it was a mistake right now! But it’s ok. I still have crypto left that’s still doing well!
It might turn out to be a good move in the near future, i'm honestly beginning to think that maybe i should sell but i'm on the fence about that.
Try and increase you tags to your post for more visibility.
Thanks, not sure how to do that, but i will research it.
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STOPGo to search and search for steemit tags, you would see different tags that are relevant to your post use them. You are entitled to use five tags on a post.
I appreciate the tip, will do that.