Correcting the climb
This is exactly what I was speaking about yesterday.
In this post: https://steemit.com/cryptocurrency/@bitbrain/caution-steep-hill
The dip
WEAK HANDS a phenomenon not well understood outside of the cryptosphere, doubt themselves and sell at the first sign of danger. If there is no sign of danger (as in this case), they become increasingly skittish until they eventually sell anyway!
There is no honour in this, no intelligence, no strategy; IT'S JUST PLAIN STUPID!
From https://coinmarketcap.com/charts/
That dip is the direct result of careless, nay clueless trading. But I'm not as angry as I sound.
Indeed, as I said yesterday, I prefer this correction because it slows the market growth. I would much rather have the weak hands leave the market/dump their holdings now, than have them keep them and dump them all at once later. That's how markets crash (as happened in the first quarter). So let them keep getting scared, let them keep selling way too early, let them keep the market growth lower and more stable; it helps us all in the long run!
This is all completely expected (look at this post from earlier this week
https://steemit.com/cryptocurrency/@bitbrain/whoa-boy, but that doesn't make it RIGHT.)
Thanks weak hands, stay weak - it makes me strong.
Yours in crypto,
Bit Brain
DISCLAIMER:
I am neither a financial advisor nor a professional trader/investor. This is not financial advice, investment advice or trading advice. Unless otherwise stated, all my posts are my opinion and nothing more. Crypto is highly volatile and you can easily lose everything in crypto. You invest at your own risk! Information I post may be erroneous or construed as being misleading. I will not be held responsible for anything which is incorrect, missing, out-of-date or fabricated. Any information you use is done so at your own risk. Always Do Your Own Research (DYOR) and realise that you and you alone are responsible for your crypto portfolio and whatever happens to it.
Something you have to bare in mind, lots of people are trading crypto on different timescales, just like they do on every asset class. Walk into any hedge fund and people will be trading on anything from tick charts up to quarterlies or more.
The people you refer to as 'weak hands' are probably day traders profit taking. That means that they've just made $$$ while your portfolio just lost $$$.
Will they make more money in the long run instead of buy and hold ? Sure, of course they will. If the price is ranging one day and they're swing trading then they're going to make lots of multiples of what you do every day. Your portfolio might have went up 100 pips in one day, theirs probably went up 70+40+60+80+30 pips. And their account compounds every day, buy and hold doesn't, it's dead money.
Sorry, I just can't stand this idea that people who trade less than 'one entire human lifespan' are somehow 'weak' or 'stupid'. In ten years time, their account will have compounded to 100x what yours is. Are they still weak, stupid and clueless ? ;-)
I hear you, but I disagree as to who is doing this trading. I maintain it is the clueless mobs: the DOGE supporters, those buying the dead coin BAR, hell - there are still people buying BitConnect! Come get some skin in the game here and you'll see...
I might consider trading some crypto soon, but only on margin or it's not really worthwhile. I don't want to hold any actual crypto, the spreads are too wide for my volume of trading.
I'm pretty confident my technical analysis is better than most of the crypto traders... If I can trade Forex, which is merciless, then crypto should be a walk in the park. :-)
You GO gurl!
I would suggest that the best way to get into crypto might be to forget everything that you already know... The rules are "funny" here.
hmm, I think I'll stick with my tried and tested method of trading, it's called 'consistently making lots of money daily'.
I don't think I can handle 'throwing darts at a dartboard, in another room, over my shoulder, blindfolded, once a year' he he he :-)
Just remember that you're making fiat money. That could prove problematic in years to come. For what it's worth: the traditional stocks that I've held onto are my precious metals ones.
me too... not the actual metals but I have a lot invested in mining companies that produce precious minerals (the ones that are used in battery technology). Big future...
Clever... I've stuck to gold and plat, but I like your idea even more.