Noob Trader - What I've learned to date
As the title suggests I am a 'noob' trader of bitcoin and more specifically, alt coins. What I've learned since I started trading is what I knew going into it in the first place and have since been corrupted by the highs and lows of the market. The tilt you feel on a coin you buy and sell too early, only to watch it soar 100% the next day, thinking 'oh man, it's too late now' only to find it soars another 100% the very next day is hard to forget. You think patterns will repeat themselves so you chase that in another coin that surges, but it doesn't follow the same pattern, it drops significantly and you panic sell. Now your down and trying to chase where you started from and have to make 100% on your current investment just to get there.
If you can relate with that, then listen and listen good. Find coins you believe in, your belief is felt by many others who share the same dream as you and be very patient. I'm not trying to wait a year to earn 10%, so watch these bad boys and when they take off on a margin you are happy with, then you can sell and forget about that coin, let it cool off and put that money into a more long term coin you know won't go away until you're ready to get a little more risky.
If you don't know how to day trade, don't bother, while you might get lucky it's going to corrupt your thinking to a more short term and less patient approach. Day trading has cost me 150% ROI to date. Trust me, just admit that to yourself and you are better off.
Do not believe any person on twitter or the FAKE NEWS you find on the internet, instead look at it simply as advice and do your own research with a calm mind and think, does this make sense. Perfect example of my regret, people were saying Ether is going to tank at $230, but I knew 'all the new ICOs are Ether based, why would it tank, it's only going to go up' that day I bought more than my fiance was ready to let me to invest on that feeling. I ended up short selling because of the doubt I read but my logic knew it would soar soon and it did. Listen to your logic.
Don't let anyone tell you bitcoin is a bubble, bitcoin is new and a change to everything anyone who has ever done analysis on markets won't understand because it is new.
Keep yourself organized and find something to do with your time, set alerts on prices and maybe consider setting a stop limit on some more risky alt coins.
DO NOT EVERY BUY A COIN THAT IS ALREADY UP 100% in 24 hours thinking you can catch the next 20%, it is not worth the risk and you will get hurt, badly. I've tried this 3 times, I got lucky one time and made 100$ but I risked 2,000$ to do that. The next time I was not so lucky and I lost 700$, the last time I tried I lost $500. These losses were all my winnings and I've since been chasing that making worse decisions and taking more risks. The risks are good but control your risk, know when you want to sell and if you do want to try day trading out, keep it to no more than 20% of your total investment otherwise the emotion will overtake you.
Great post. I agree that day trading is a complete NO due to the volatile nature of the crypto market. You can never predict what is going to happen next on the short term. Crypt has always been a long term investment for me. I buy a coin that I strognly believe in while it dips, then I simply hold and forget about it. This strategy has worked wonders for me!
Thank you for the reply! Please upvote if you like it! I think most people entering the crypto space for the first time either fall into my category or buy and hold forever, which is not the worst strategy. I think buying at the dip and selling at a margin your happy with is the way to do it for us noobies! :) I'll follow up with how I've done versus how I did in another blog soon, follow if you like!