So, if my position on investment strategies is not already apparent (cover picture) then we are in for a long ride. I am not saying that my strategy is the correct choice or perfect, however, it has made me money and alleviated the stress I once had worrying about market fluctuation. In this article I will differentiate between swing traders and HODL'ers and leave it up to you to decide which strategy best suits you.
Lets start off with Swing Trading. It sounds time consuming and it very well is. It is a challenge working a 9 to 5 job and trying to constantly be engaged in the market. I am not going to lie to you, I do a little swing trading myself simply because I have this desire to learn the market and be a 'well-rounded' investor. In the beginning process I googled how to trade stocks. I read several articles (all of which none helped) but then I came across a link to a YouTube video (link at the bottom of this article).
They call him the *The Market Sniper*, a.k.a. Francis Hunt, a technical analysis trader. I was instantly hooked. I watched every single one of his videos several times and I was rather impressed. The Market Sniper begins his 32-video series with an introduction and then slowly eases his way into his strategy. Video 6 of 32 is titled 'How can I get started in the stock market' and he begins the video by saying "I think everyone should have a savings and investment plan..." and this single sentence SOLD me. It showed that he was not making this series to attract the "suckers" or "amateurs". I believe he is looking out for the Average Joe like you and I. In the videos to follow, he covers anything from Strategies to Market Conditions to Entries and Exits and the list goes on. He is very thorough in his presentation and I'd advise to take notes.
HODL stands for 'Hold On for Dear Life'. Sounds funny doesn't it? But it is very true. The HODLers of Bitcoin from 2009 are currently millionaires. Let's make it clear that I am not making any promises, I am simply putting the concept of HODL into perspective. We are in the early stages of Cryptocurrency adoption and it most likely will not catch on until another 5-10 years (possibly even longer). Think of this as the beginning of the Bull Market in the 1980's. Invest now, HODL for the long term, and benefit in the end for your patience. It is that simple. I personally HODL my "diamonds in the rough" so I have no temptation of trading them for anything else. I did my research on each of the projects, investigated the teams behind them, and made a decision that this coin will one day have real-life application.
Emotions will sometimes be involved and you WILL be tested. There will be FUD (Fear, Uncertainty, and Doubt) very much like the current situation in the market. People see red and automatically panic sell and then buy back in when the coin is at an ATH (All-Time High) which is not a smart strategy in my opinion. I feel the safest strategy is to HODL and ride the wave. The market will fluctuate and that is okay because that is what markets do. If it was a constant gain in profit, do you not think everyone would jump in? Don't be the guy that sold 10,000 bitcoin in 2010 for two pizzas (don't believe me? click the link below) Use common knowledge and be smarter than the rest. Quick tip, I store all of my 'HODL' coins in a cold storage as a safe guard to panic selling (yes, even I have emotions and have urges to sell) however, I do not and I choose to HODL. You only LOSE when you SELL.
Thank you all once again. Hope this article was helpful.
--- Ledger
"The Market Sniper" Francis Hunt: https://www.youtube.com/playlist?list=PLnSelbHUB6GT9L_TanRe_sya0CV5_QHW-
Don't be like the pizza guy: https://mashable.com/2017/05/23/bitcoin-pizza-day-20-million/#ParL3mPfMmq3
Follow me on Twitter @ AltLedger