What does a Model Crypto Porfolio Look Like? — Steemit

What does a Model Crypto Porfolio Look Like?steemCreated with Sketch.

in bitcoin •  11 months ago

SUMMARY

I have an opinion on what a good crypto porfolio should look like. This is just my opinion and not a financial advice nor a recommendation to follow, copy or target. It is posted purely for informative or entertainment purposes.

I believe a crypto portfolio should have a binary objective: Diversification and a De-Risking Strategy. These two attributes should enable a far better weathering of any correction or temporary downturn than a portfolio that pretty much shoots from the hips. It's usually during even the slightest sign of correction that persons often panic sell or the reverse driven by FOMO (Fear Of Missing Out). These FOMO portfolios often flawlessly execute the "all the eggs in one basket" tactic. Such directions are often driven by greed which is a very sneaky sentiment. It's so sneaky that it can even infiltrate the unconscious and control the decision making process. Those bitten by FOMO usually have been kidnapped by greed and it is a condition that's very difficult to self catch.

Let's consider the following composition of Crypto Coins and their proportions:

20% Bitcoin (BTC)
10% Ethereum (ETH)
5% Litecoin (LTC)
5% DASH
10% CASH (USD or equivalent FIAT)
50% Altcoins (12-15 different Altcoins, each selected based on highest percent profit probability.

This portfolio has a composition that allows exposure to Bitcoin, ETH, LTC and DASH; the stalwarts. Their percent proportions are balanced on a monthly or quarterly basis. The 10% and at times as high as 15% Cash postiion is invaluable during corrections because it provides a level of empowerment that helps keep the fear and greed at bay. When sitting on such large piles of cash, one can always and easily enter a correction phase and confidently buy at discounts and be aware that once the resumption of the original trend occurs, MASSIVE profits can be had.

The 12-15 different Altcoins should consist of those at or near the terminal end of a correction. In other words, waves 2 and 4 of an Elliott wave impulse. The higher the degree of trend these corrections can be found, often the better and more profitable. Each coin is therefore carefully selected. Therefore, each coin must also "earn the right to keep their position" within the portfolio. Usually, when a new coin candidate for the portfolio needs to be added, the 2,000% gainers are booted to make room for more ground floor opportunity coins. Hey, the life cycle of a crypto is tough!

Take from the Rich & Give to the Poor
Within a portfolio, identifying the high fliers, the coins with several hundred to thousands of percent gains allows one to then take incremental profits from these and redeploy into other coins in the same portfolio that are having bad days. These are the ones with the -15% or -27% declines. By doing so, one is effectively selling high and buying low within the portfolio and this can have powerful impact in growing the net liquidation value!

Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?

Follow me on Twitter for Real Time Alerts!!
Follow me on StockTwits for UpDates!!
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If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or consider buying me a beer:
BTS Wallet - haejin1970
BTC Wallet - 1HMFpq4tC7a2acpjD45hCT4WqPNHXcqpof
ETH Wallet - 0x1Ab87962dD59BBfFe33819772C950F0B38554030
LTC Wallet - LecCNCzkt4vjVq2i3bgYiebmr9GbYo6FQf


Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.

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since DASH is high then u need ie EXCL there for next wave

Interesting selections, but I would add a few to that main list:
Decred and Monero, both have been performing as well as, if not better than Dash.

A very well written post!

I really value this advice, it makes lots of sense. Thank you! You're one of the only solid and consistent sources of good non-hysterical advice I've been able to come back to time and again in the crypto world! I'm a poor student trying to breed some wealth during this paradigm shift and you've been a great help! By the way, in the best possible way, your voice reminds me of that of Winnie the Poo! Charming!

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Lol! woww yeah!!! you're right :) they have a peaceful & calm voice 🙃

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Yes - very zen. Feeling calm and relaxed is exactly the emotion to have when trading cryptos!

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except @haejin is not that bearish :-)

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Lol! You are very right! Ha ha! Except he definitely doesn't remind me of the only cartoon bull I know:

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omg yes! ha

wow, this is very valuable advice. Thank you so much!!!

Sounds good. You have previously talked about selling 30% of bitcoin (or other coins) due to where they are in the cycle. Also about buying the dips. How does this equate to your stated 10% btc etc. Ina portfolio in which bitcoin has run up and was at 20%, would you rebalance or wait till the Elliot waves indicated a downturn.

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he does mention in the article that the portfolio can be rebalanced monthly or quarterly. so in the case of BTC running up higher than the other coins, one would trade out of BTC into those that hadn't performed or pick up heavily corrected altcoins, etc to rebalance the ratios

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I am aware of rebalancing but if you are overweight btc (say 20%) yet have a dreaming but signal from your TA, I assume you wouldn’t rebalance? Or does that take priority?

Thanx for sharing. Upvoted and resteemed.

Bitcoin formed a classic head and shoulders with the arms up screaming Woooooo!

This pattern is associated with a drastic rise in price to the moon.

Great post @Haejin thanks to you and my prifits from xvg and tron today I have a nice portfolio of 16 different alt coins most of which you give your predictions on so thank you.
This guys great the only guy I follow for my crypto anyalsis since day one. I highly recommend you do the same.
Waiting for the next “KABOOM”

@haejin, this post is awesome, it should definitely be added to the permanent tutorial links!

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I would like to do that to. How do you add to the permanent tutorial links?
Thanks!

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@nexit. Follow twitter: Haejin (@Haejin_Crypto) | Twitter. You'll get notification on twitter that link directly to this page (stemmit). To turn on mobile notification, you go to the 3 vertical dots on upper right and choose that option.

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Thanks for your kindness.
I do no have a twitter account.
I will see what i can do.
Thanks again.

Excellent post, thank you for sharing this strategy!

Thanks Haejin... as usual great holistic advice.

amazing strategy.Much obliged for sharing it

Perfect Composition liked it.

My Blog @asifgoraya123

@haejin How do you manage 12-15 different Altcoins? do you have a spreadsheet we can see?

Also why don't you see Bitcoin Cash as a stalwart?

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I guess you can have some others big coins in your portfolio, I do not own Dash but got Bcash. That said, I think that BCH should be seen as middle term holding, when BTC will upgrade it could become useless imo ..., but who knows ...

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BTC will not be saved. If you believe in bitcoin, the original vision for bitcoin, you should believe in bitcoin cash.

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When you realize that big blocks isn't a permanent solution and see segwit adopted and lightning in action your opinion will change. Hundreds of people work on BTC. Bcash has one known developer the rest is a small team of unknowns. Roger ver brags that BCash is fast and cheap. But if you look their blocks are half empty because not many people are using BCash. I personally believe that coinbase is trying to sabotage btc by not upgrading to segwit. Purposely clogging the network too push BCash. At this point I use litecoin for transactions and Bitcoin as a store of value. Just like you would gold and silver.

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On chain scaking is defined in the whitepaper. Segwit breaks the legal and security aspects of the Bitcoin system. The Lightning Network (LN) is not peer-to-peer and thus is not Bitcoin. LN will not live up to the hype and is already two years late and is supposedly another two years away. This is much too late considering BTC is unuable with high fees and conjestion. Bitcoin Cash is here now and is usuable and will have some additional features onboarded very soon. I'm selling my remaining BTC for BCH.

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http://bitcoinist.com/bitcoin-fees-mainnet-lightning-network/ Lightning network is live today on the mainnet. Not 2 years away buddy.

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Good luck HODLing BCash instead of BTC. I hope that works out for you. There is a reason BCash isn't on Haejin list.

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Because he's a purely technicals trader who cares nothing for the fundamentals?

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people like you will never understand that talking shit about Bitcoin it is the worst possible way to promote your BCASH.

all this propaganda, trying to discredit bitcoin as "bitcoincore", all you do is hurting yourself with these attacks on btc as Bitcoin it is still the crypto flagship that drives the entire market.

Fortunately this is not a serious threat to btc as shown already by @joebobby187, otherways you would endanger the entire movement with your selfish attempt maximizing your bcash proftis.

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What is bcash? There is Bitcoin Cash.
Get uaed to it.

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thanks for your valuable input on the discussion. But you proof the point , you are obviously not able to argue with the facts and all that is left to do is trying to spread misinformation and blatantly attempting to overtake bitcoins name, good luck.

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Thank you Barsic for atleast trying to change there mind, i grow tired of these bcash altcoin kids.

Atleast i can sleep good knowing they will be holding empty bags anyway.

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Use an app like Coin Stats. Enter all your coin info (coin, amount owned, even date purchased) and then you have it right there in front of you: gains, losses, % owned compared to the rest of your portfolio. Its great!

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Is there a website like Coin Stats that allows date purchased? That sounds great but I dont like using a phone

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just use blockfolio or some other crypto tracking software (at the peek my portfolio consistet of almost 50 coins in total)

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Bash has been bashing the Altcoins since August. From average of 300 to top at 3000 recently, that is crystal clear 10x solid returns in four to five months.

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I use www.altpocket.io ! They already have API support for Bittrex, Poloniex, COinbase, MEW. Soon also for Binance and they started developing an iOS app.

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Thank you! Looks like they have the ability for you to enter the price and date when you first bought which is nice :)

In fact, Bitcoin is an awesome coin thank you to share it among us

I hope you can take a look at DENT next.

Well, most of your post I agree with. Learned a new term FOMO. thanks. But I don't agree with you on using the profits made on gainers to buy some more losers. That may just make you stock more and more losers. And if those loser coins go for a massive correction you are gone or at least sit back and wait for the doom day to be over.

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By losers he means coins that have to go up and are on a downside, so that are cheap and will make a massive profit when going up. Technical analysis is used to spot these.

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also thats why the alt portfolio needs to be large enaugh. For sure you cant bet a 100% on TA but if among some massiv gainers you will have some shitcoins then you will barely notice that and sort them out on your next portfolio review if you decide not to wait any longer.

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You made a right point @barsic. Shitcoins profit should be taken asap but dont invest all the earnings in a bearish coin until it has started to make a bullish trend

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Thanks for your response. I do understand what he meant by and that's why I made an opinion. But many a times buying more and more of a bearish item results in huge losses as the coin may even break the resistance and go further below. Thanks.

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If you can't bear 30% corrections, you don't deserve 1000+% gains.

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Well said @hashbox. I do bear corrections. My point was different. Anyways thanks for the response. Love.

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That's what TA is for. To find the coins that are ready to explode up. Which in this market is almost guaranteed to go up. Set your stop losses. Reassess your coins and make a decision based on anaylasis. Not to blindly pick some random coins. Or shoot from the hips.

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I agree with you. Just wanted to add a point here. In cryptomania fundamental analysis is equally important. Thanks.

@haijin- Honestly a great post. I've been following a newletter for almost a year and he is essentially recommending the same approach. And this approach has been remarkably profitable. In fact it's been and will continue to be life changing. I hope others realize just how valuable your post is. I'm up 19X on my portfolio since March of 2017. I know of no other legal way to make this kind of money.

Thank you for your advice.

I like this post. Take from the rich and give to the poor. God Bless you. Don't stop posting. ✅

I love the writing style!

Nice!!

The give to the poor part is easier said than done though, ive been trying to use this method but i find that 98% of coins all and rise at the same time, i almost never have a senario where a bunch or even one of my coins are rising when a bunch or even one coin is going in the opposite direction. Look at the last few days for example, all coins were in the red, now it seems theyre all turning green.

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cant agree with that. maybe my portfolio is larger then yours but I use this exact strategie and almost on a daily basis I have coins that outperform others. Your problem seems to appear due to a too narrow portfolio

Tu Información es muy buena, no tiene mucho que te empecé a seguir saludos.

have to practice taking 10 percent profits to change it to fiat to btfd, or else just become a hodler

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Kinda of feeling this approach viable though half the mind is thinking of the Philosophy of fighting the status quo by not be in their control (not holding their Fiat, not be slave to their time working hours, insurance fear mongering etc).

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thats why it depends on the person as an investor, i got few friends having different approaches to investments, see whichever that fits you. Because by the end of the day, you are responsible for your investments, advice and tips is just a guide, you do not need to follow all, you must however follow what you have decided and also rethink on the decision again and again and again until at a time where you feel that you are matured in investment intelligence (lolz, we have emotional intelligence, so why not "investment intelligence" ) that you have things backing you on the decision that you make.

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To most people, it's back to investment, thinking of stocks. To myself, it's about exiting from the illusionary world. Move into that other dimension, yet a fixed intervals can bring into this dimension the assets or value as needed.

@Haejin when btc is going down do you still keep the 50% in alts? i mean how do you manage the influence that btc has on alts' price?

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i think its mainly for long term hodlers. you may set a stop limit sell order but what if it bounces back up and you did not had a stop limit buy order then you will lose out and have to chase the price up buying it when it goes up. Unless you have lots of reserve to put also a stop limit buy order. So choose one, be a hodler or stop limits in place.

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thats when you redistribute (as stated in the post)

That's so fucking valuable, I'll even resteem that!

Great advice. Thanks Haejin!

Great :) i follow your ideas

Nice I have a better understanding of what's an investment portfolio is. Thanks so much @haejin :)

That's a really useful pots. Thanks Haejin!

beautiful

Just Perfect!

This is the method I have been going with. % a little different, but same idea.

40% BTC
20% LTC
then 40% alt coins (I have only 9 though).

Looking to pick up a few more alts...just trying to figure out the ones with the highest percent profit probability. Anyone have thoughts on that?

@haejin, thanks so much for the effort, and more importantly, the time that you devote to informing. This post is a perfect summation of all your experience: Awareness, continuous learning, risk mitigation, diversification, etc. I hope Steemit becomes a platform for much more of what you provide.

@haejin- I’m curious. What is your advice for someone with a small portfolio- 1000 dollars or less.
Do you go all in on one Altcoin until you can double you profit? Or do you still diversify?

I’m genuinely curious what you think?

Excellent post again Haejin!

It's wonderful to have such a passionate mentor of 20+ years experience. Could you please make this more easy to find for down the road? I think a lot of your followers would like to reference this material in the future, like myself. It helped reinforce what little I do know and add much more useful knowledge I will be sure to take advantage of.

I will be studying your recommended books and diversifying my portfolio to different colours of Tron when the moment arises. When that happens, the next Cass is on me, 형님.

Thanks for your advise !!

Great post @haejin! Nice breakdown of the "how" and "why".

Upvoted and resteemed!

Why so bullish on DASH? Thanks for this one.

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Sage advice. Thanks.

Thank you Haejin, I have been looking for this kind of input for awhile. Keep up the great work!

I got BTC, LTC, EOS, BTS and ICON as my main holdings

I agree with most of the portfolio. Except Etherum. I do not have faith in the security of eth. It's amazing to me how it's value continues to go up despite it's flaws. I also think if you have less than a Bitcoin in total value 15 altcoins is stretched a bit thin. I learned this lesson during September and October when my 1.8 Bitcoin portfolio value went down to .70 Bitcoin value. So while bitcoin was running wild my portfolio was going down. I wish I hadn't spread my self so thin before. I would be sitting pretty. Most of these altcoins won't be around in a few years so HODLing is extra risky when it come to altcoins. So my goal is to build the amount of bitcoin I have. I already bought back into bitcoin on the initial dip. So my fiat stash is gone. I sell on the way up. A little here a little there building my fiat stash. To buy back on dips. The good news is my portfolio is up to 1.5 Bitcoin and rising. Everyone needs to assess there own risk tolerance and act accordingly. Thanks to you Haejin I have better recognition of the trends and do my own analysis.

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regarding ethereum, keep your eyes on the casper upgrade, you might not wanna miss it,

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I've chosen Qtum over Etherum. I like the Qtum team. Btc, Qtum,LTC are my main holdings. Followed by BTS, xvg, cvc and maid safe. I have a few coins that are short term trades.

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My portfolio includes the same alts, except MAID which I havent even heard of yet (will be checking later), thanks for sharing! Maybe you would want to check out EOS, NEO, PASC, ADA, KMD, IOTA as well, also STEEM and BTS is always a good pick.

Anyways, maybe you want to give Ethereum a second look, maybe not for exponential growth but it is still a good choice for a storage of crypto wealth, specially with the planned upgrade.

Best of luck to you!

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I find Iota, eos and ada interesting but neither have working product yet. I did have some ada that i sold at 5x gains. I appreciate the responses and input. Good Luck to you as well.

God bless you Sensssssei. I am interested about your opinion on DATA Streamr. Best wishes and greetings from germany

Great post @haejin! I was just thinking about how to spread out my portfolio moving forward. Are you a mind reader????

Awesome essay Master Haejin! Very good guideline and fantastic advice.

Appreciate your writings and warning early on in the top paragraph concerning greed. Was caught up in such situations without the ability to pause. Now I'm doing my portfolio management better plus have set a time limit of one year to tweak then let it settle.

Your top vital notes "These FOMO portfolios often flawlessly execute the "all the eggs in one basket" tactic. Such directions are often driven by greed which is a very sneaky sentiment. It's so sneaky that it can even infiltrate the unconscious and control the decision making process. Those bitten by FOMO usually have been kidnapped by greed and it is a condition that's very difficult to self catch."

Glad to know you sharing your knowledge for free.

Thank your for your constant updates and diverse input!

Do you have analyze the correlation between crypto to determine the asset allocation ?

My strategy is based on an ETF. so I calculate the weighting of top10 coins in coin market cap and try to match 80% of my blockfolio to that for diversification. I should have picked up ripple using this strategy. And leave the rest 20% for ICOs and cash for BAFD.
So when the wall street gets their ETF approved, they can just buy off from me. :-)

Grateful, as always.

Great post haejin, you may want to add capital gains or loss to the equation, In my case I'll need the coin to fall more in the vicinity of 50% than 27% as the capital gains in my bracket is 43% no use risking it for 7%, moreover, coinspot charge 3% in and 3% out. sic, is it worth 1%? All I can do is HODL and add until my cash reserves run out and sadly they have :-(

Great post. Thanks.

Excellent advice, especially about keeping cash on hand for corrections!

Thanks haejin for this post.
I have selected 2 coins from respective sectors like telecom, power, lending, Fintech. I have diversified my pf like this as per industry. I do book partial profits after any coin multiplies frm buying price..

You're the best '!!! Thank you for sharing.

Good info boss thank

what exchange you guys use? i would love to be able to buy with my euro, dont want to give my btc away for getting in new coins, made me loose in past. thanks

thanks for sharing this @haejin, one question though. I think I heard you saying in one of your videos that you prefer trading altcoins vs USD rather than BTC. Is that correct and why?

Nice Post Dear Steemian. Thank You For Your Effort
Shared LOVE With My Upvote. How about you Share some Love too?
Cheers and Have a Peaceful, Profitable Year .
Keep Posting and Get Rich ;) :)

The AriseBank governance voted to include 13 cryptocurrencies in the unmanned treaty, including EOS, BitShares, STEEM, Bitcoin, Ethereum, Litecoin, PIVX, Stellar, IOTA, DASH, Vericoin, Lisk and ARK. “This treaty is based on the highest principles of the constitutions of the countries of origin of each of these crypto communities. This is a collective of best practices, that are digital and constitutional first. This is the optimum combination of principles and talent for the economic and social betterment of the world’s majority”, said Eddy Taylor, spokesperson for AriseBank.

Based on your prior suggestion...I loaded up on BTS so future generations would be well taken care of...is that now foolish?

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I think you're headed in the right direction. Foolish would be to not be invested in the crypto-sphere.

This only applies when you are really committed to Bitcoin.
With having sort of a technical background, I don't see the point in Bitcoin anymore.

분석만이 아닌 투자의 방법에 대한 글 너무 감사합니다. 해진님 :-)
감기 조심하세요~

Can you do update from BNB. you recomanded this at his lowest price and he wend so hard up like you sayed.

I have 4 altcoins
Spreadcoin buy at 3200 now about 20000
Gridcoin buy at 470 now about 1100
Basic Attention token buy at 1950 now for about 5300
Ark buy at 32000 now for about 61000

No mater what - buy when close to ATL and hold = success
Haejin could you do technical analysis of Gridcoin (GRC) bacause i dont know when to sell it (i have target about 3000)

I love your "Take from the Rich & Give to the Poor" expression,
I know another one, “Scoop the Cream” strategy,
meaning never sell 100% of your profitable coin holdings at once.

You know, you sell it all today and tomorrow the coin keeps going higher and higher, and instead of being happy with your profits, you are sorry that you sold it. Oh boy... so that 'scoop the cream' strategy is a safer one ;-)

Very wise strategy. Thank you sir!

Thanks Haejin, your blog is a treasure.

Looks like we have breakout on BTS.

Screen Shot 2018-01-12 at 11.48.16.png

Excellent advice. Particularly about the fiat percentage. If you have a certain amount of fiat availible to invest you just can't miss some great oportunities that come at corrections or some particular FUD that shakes "weak hands".
Excelent Advice! Upvoted and resteemed!!!

Great strategy. Thank you!

Thank you, very helpful.

I like it...thank you for sharing this strategy!....

I am quite surprised that my portfolio is "somewhat" similar to your model in this post, at first I thought I could be sailing in the opposite direction, I feel relieved now that i am close to what your expertise proposed, again, thank you for the crypto massage.

tea.gif

Thank you for sharing your knowledge. I know of this little war ongoing with some Steemians flagging your posts. I have no idea what the war is about. What I do notice is that you present yourself as a crypto technical analyses expert and I don't have any information not to trust that. In this post, I also think you provide some good information.

What I also notice, is that you never engage and respond to comments to your posts.

Why don't you engage with your followers? Those who give you thousands of dollars of revenue each single day? Your followers do have questions, they want to learn from you, reason for them to follow you and reward you. But it looks like it is a single way street. Or am I missing something? When so, my apologies.

This is very helpful and sound advice for those who are getting started. Thank you!

Can you share your 10-15 altcoin list?
Do u just hold onto it or do trade?

Add this to the list of tutorials :)

This post ranks right up there in the top three along with your first postings about XVG and BTS. Best thing I have read in along time!

Thank you for sharing your strategies. Very valuable!

@haejin could you also do a post on swing trading tips. That would be greatly helpful.

always worth the time reading your posts man! thanks!

Thank you sabu!

I'll take a look at it! :)

This is incredibly valuable information. In a market driven by so much raw emotion, logical guidance like this post is invaluable. I truly appreciate your posts and enjoy learning this game! I find that every time I have sold multiple times whether it be from FOMO, FUD or correction, only to see shortly after that the coin then rises significantly. Working to learn how to become a successful, patient and calm trader by studying your lessons! Thank you @haejin

Thanks so much. I am having a problem, though. I am overweighted in the alts, andI find it very difficult to diversify, as I must wait for the current plays to execute or complete, prior to selling into Btc, Eth, and Dash. Would I be cutting off my feet to sell at inopportune timing? Or is it more prudent to accept the loss to rebalance. The other issue, of course, is that any attempts at rebalancing at this point, will trigger multiple taxable events. I do believe I am ultimately well positioned with a wide balance of reasonably established coins (Ltc, Neo, OMG, Ppt, Qtum, ADA, EOS, ADX, PIVX, BAT, CIVIC) I likely could wait out a storm... I hope??

Thank you, Haejin. Is BTS one of your core holdings? I believe you mentioned this before. Thank you

Thanks Haejin! I appreciate you efforts!

Great advice as always thank you!

Where’s Steem in this portfolio?!

Thanks a lot @haejin, this post is so important and each one should have a strategy to follow other than investing blindly 👍
Taking some profit from the big gainers and putting in the poor ones during their down time is so important !!! I needed this advice 😇
We can use resteemable service to resteem haejin's amazing posts :)

Thank you for sharing. I actually needed help developing a strategy.