HOW MANY COINS YOU NEED TO GET FILTHY RICH!!! Yeah Baby!!!
So my question is:
How many coins do you need to have/trade in order to make a solid return?
Some of you are going to get all butt hurt over what I say in the next paragraph or so, and I’m going to make a few of you feel dumb; that’s ok. You learn how not to get your ass kicked by getting punched in the mouth a few times and actually getting your ass kicked. In simpler terms you learn what not to do by doing what you’re not supposed to do. Why is it that we don’t lay our hands on the burner of a hot stove? Because we have all been burned at some point by something and learned that shit hurts. Humans learn through experience which then through our programmed survival instinct morphs into an unshakable and healthy aversion to the things that hurt us. Why is it that the same does not hold true for trading? Why is it that we fail to develop this survival instinct to things that hurt us and instead keep laying our hands on the stove over and over again? I heard once that “the definition of stupidity is to do the same thing over and over again, while expecting a different result”. I find much truth in this.
So to the heart of the issue; in regards to the number of coins you need. I posit that you only need to trade three at most. What a fucking moron you say; this guy is off his rocker, fuck him, he don’t know shit. So I ask this question of you, how many people out there are elite in multiple sports, professions etc? Have mastered all the subtle nuances of success at the elite level in multiple arenas? Sure there are a few, but the over whelming majority of the truly elite in a particular arena stay within that arena. As a human we can only process so much information at one time while staying abreast of changes, shifts in momentum etc. and be able to convert all this input into experience for use as a measure by which we will weigh our future decisions. Why be average or below at many things when you can be a fucking rock star at one?
For those of us that have traded crypto for a while and have particular favorites we know that there are so many subtle nuances that occur within a specific commodity relative to the action of Bitcoin. We know that Bitcoin is largely influenced by the press, hype and manipulation and that "What Bitcoin does the rest of the market will follow". We also know that the further we get from the source (Bitcoin) the more erratic and irrational the changes become.
Why bet on the Number 6 horse in the third race whose placement is dependent upon the success or failure of the Number 2 horse in the first race and the Number 4 horse in the second race? Why not just learn all there is to know about the Number 2 horse in the first race and bet on that? As opposed to having to learn all the information about each horse in every race preceding the one you actually want to bet on who may or may not succeed dependent upon the outcomes of a specific horse in a prior race? I say learn the track conditions, probabilities and statistics on the lead horse and become an expert on him.
The opening screen of Bittrex-->Markets is a perfect example. Step Right Up, Step Right Up, Pick a Winner. How much information can you process? How many coins can you really know all the nuances of? How many are pump and dumps? The reality is by the time you click leaders and see something up 50 percent in most cases it’s time to be selling not buying.
It easy to get sucked in as you can just click %Change and pick a winner from the top. It's that easy!!! (note sarcasm). It's not like everyone else is doing that, or as if those holding are looking to sell. I don't know about you, but if I'm up 50 percent, I'm looking to lock in some profit and go play video games.
I put all this out there as I have done just fine trading the big three. I don’t need to cloud my focus by adding in a bunch of extra information in the hopes of getting rich quick. I just stick to what I know and specialize in that. It allows me the ability to process more information about a single item and make a better informed trading decision as opposed to trying to process hundreds of fragments of information about many things and arrive at a less informed trading decision that puts my capital at risk.
Again I will put my money where my mouth is. If you love following transactions around the block chain here are two old addresses I used (I pay my taxes and use cold storage so I’m not worried about it). You can see the input on 11/02/2017 for 300 LTC that I had been ACCUMULATING in the high 40’s after having sold previously at $67, after having likewise accumulated those in the 40’s (I think 48.50 to be exact).
So if we do the math. Buy at $48.50, sell at $67.00= 28% gain
Accumulate around $50 and sell at an average of $88= 44% gain
Sum total 72% gain on initial investment or $7.20 earned for every $10 spent
https://chainz.cryptoid.info/ltc/tx.dws?13423901.htm 2017-11-02 Low 50's
https://chainz.cryptoid.info/ltc/tx.dws?13909613.htm 2017-11-20 High $80's- $100
I never bought a single Alt Coin. I never went all in and risked more than I was willing to lose. I never ate a fat FOMO shit sandwich; though I did eat a few FOFO (Fear of Fucked Over) sandwiches that caused me to miss buy points; oh well..
If the Market was down I remained disciplined and did not trade. I have no interest in trying to chase the Tiger through the jungle only to find myself in unfamiliar territory and at risk.
It’s like that old Joke about a young bull and old bull staring down from a hilltop at a group of heifers. The young bull looks at the old bull and says “Lets run down there and fuck one”. The old bull looks back at him and says “No, Lets walk down there and fuck them all”. Same concept be patient, stick with what you know, don’t get greedy and avoid chasing a dollar you don’t even own all over the place.
Just wait and buy the thing you know at the right time.
I think diversification is important if for nothing other than a hedge.
However I think your strategy is a fool prof for the short term. Think of how your crypto journey started, if your in the states it was likely coinbase ->btc ltc and eth, as that's usually how it goes around here. I think everyone is anticipating crypto here is stampeding into 2018, and I think those 3 coins will receive the majority of the new money coming in, thus making it a great short term strategy. I do however feel that money will trickle down into alts in few months time, as folks who are starting do more research and realize there's a whole other world out there aside from coinbase.
Just my 2cents. Best of luck to you in 2018 mate
I agree. I am not opposed to alts and look them on occasion as well. I look at the industry as a whole and try to determine what niche needs to be filled and what Alt Coin could fill that niche. For example. What items are needed for BTC to gain world wide acceptance? Well it needs to be truly without borders; which it is not. For if it where you would not have BTC in Zimbabwe trading 30 percent higher than the rest of the world. There needs to be a solution to that as going FIAT from one area to the next is a huge bottleneck. Also if we are to be our own bank so to speak and us crypto like we do our debit cards the payment industry is going to need to evolve with payintel, monaco etc. So I find Alts that have potential to be industry leaders to be interesting. But sadly we are not really at a place in this emerging economy where we get earnings reports, share holder meetings etc to evaluate a companies worth. Alt coins to me are nothing more the company stocks minus the information we need to accurately evaluate their value. Sadly we have to go buy what they say on their respective websites, which can be somewhat misleading.
When is that?
I posted about looking at smaller coins, because they move quicker. Yes, it is like grabbing the tiger by the tail, but I made a 125% gain in 24 hours. It worked that time, so I was able to buy more after then next drop. BitCoin or Ethereum will go up, but not as quickly as others. If I had the money to be in BitCoin a year ago, I would just be holding or buying more on the dip. But, since I am taking one crypto (that takes me a while to get any of) and buying another, I'm going to see if I can build up my stock pile faster. Heck, I really don't have anything to lose because it wasn't real money in the first place.
A second note. You don't have to look through all the coins. Just look at the ones you can afford to buy 100 or more in and do a bit of research on those. Or, just look through the names and find one that grabs you. The good thing about Bittrex is that they don't offer EVERY coin. So, you don't have to worry about a lot of the junk ones.
Nice post, as I said not everyone can be elite in multiple fields. I think the issue with shifting at times will be consistency; being able to maintain the W in the longer run.
Jack of All Trades. Master of None.
BitCoin has a weakness, which is the transaction cost. If they don't get that fixed, there will be another coin to replace it. My guess is 90% of the alt-coins are junk and just a "get rich quick" scheme for the maker. At some point, there has to be consolidation or abandonment of those other coins. But, then again, things haven't been going the way they should in a logical financial world.
VERY PERCEPTIVE. I wholeheartedly agree with you there.
If you would like to learn more about how the transaction costs in regards to BTC don't make any sense I extrapolated on that in the following two articles. The mining costs and transaction fees lead me to think that BTC could in many ways reach a crescendo and be scrapped in order to find something else to run up. Any time I am investing I have to look at the overall business model and see if it adds up.. BTC from the perspective of the miners does not.
https://steemit.com/bitcoin/@pawsdog/is-bitcoin-really-decentralized-or-are-we-being-led-like-lambs-to-the-slaughter#comments
https://steemit.com/bitcoin/@pawsdog/need-mathematical-help-mining-costs
@pawsdog and @deanlogic If I could throw a fork....
I'm new enough to crypto but learn't about RL when SR went down and kept mainly a light media based pricked ear until BTC/US$3,200. Crypto is still so new it's going to be dramatic between now and when it stabilizes, with wall street and the media, gaming introduced big business to cryto a lil while back I think.
BTW, I will note that I bought Cardano (ADA) and Einsteinium before the BitCoin crash. Both were cheap and I was interested in how they were different than rest of the coins. Obviously, if I had bought them during the BitCoin drop, they would have been even cheaper.
Very True.. I think NEO will hold some promise in the future, if it does in fact become the ETH of China.. It has very solid backing.. but we shall see.
I like your tactics! I truly believe in everything you say. Would you be willing to give some pointers at good times to buy and sell and help a young bull out.
I try and post them each morning.. @pawsdog
Just gave you follow and will keep checking your post. I do believe you don't have trade many to make profits as long as you understand the markets you trade in. Your insights awesome though.
Also if you are relying on me to tell you when to trade you are doing it wrong, and setting up a blame shift if the wrong call is made. Invest in yourself so you have to take full responsibility for both the good and the bad. Losing money is sometimes the best teacher of all. I'm just another piece of information to filter as good or as bullshit on the way to making your own decision with your capital.