Trading Methods Change and the DRAMA that Followed
What a day, evening and night it was in cryptoworld trading!
Monday continued the weekends big +++ on the boards... And then drama started again night time in Europe and evening time Americas!
Gravity got a hold on the cryptos again!
And again the biggest exchange by far, Poloniex, crashed and was out of service for many hours; DDOS attack they stated on their Twitter feed (here and here). Yesterday I already wrote about Poloniex crash at Sunday night (CET) and wondered if we should think more then just scaling and performance issues (post here); As mentioned, I'm not a conspiracy believer, but what I do know, Poloniex service unavailability coincides in these two occasions with enormous drop in coin values across the board. What causes what, is a mystery.
But enough about Poloniex and their super bad performance.
Super Short Trading; Riding the Short Waves
Yesterday evening I decided to try a different trading method than I used since I'm an active crypto-trader (only since early April this year, so I'm pretty much a newbie as a trader). With the drama on the exchanges, the initial results are BAD. Of course I cannot conclude anything since it is just too short a time to analyse the different trading techniques I used.
In short, the trading technique I started with is based on super short trades, riding the small waves uphill, buy a coin and sell within minutes, taking small percentage profits, even if this is 1% or less. When the coin would go down after purchase, I would buy more (1 or 2 times) of the same to allow for a lower break-even value. This method cost enormous amount of time; hours and hours behind the screen looking for the best time to make trades with as low as risk as possible. So far I did well I think, it did bring me profits, overall maybe more than 70% (I only traded maybe 10 days since early April). Now you can say, with the crypto values going up with more than hundreds of percent in the last weeks/months, 70% is nothing. But I think the super short term trading is less risky, while you do not have to follow the crypto news since knowledge about a coin is not really required; It is all about the short waves, the larger they are the better to trade them. This technique can even be used on bad coins, it doesn't really matter.
New Trading technique adopted Yesterday
Yesterday evening I decide to test a different method. Basically take position in some quality coins and leave the investments for what it is, regardless of the ongoing short waves and pump/dumps. Qualified coins are those that for some reason have a good story, good market perception and some reality in terms of services and business. My chooses where:
- Bitshares (BTS): they simply have great technology behind their coin
- NEM/XEM: there technology is used in private commercial solutions and deployed in the field in Japan
- Steem: what can I say :)
The results after a little more than 12 hours in one word: DRAMA!
This morning immediately after I woke up, my portfolio was down with 50%. Now hours later, the coins are doing somewhat better, but still something like 35% down.
But I guess, I should not look at such short term; This method is more for mid to long term investments. So I try to keep my cool, keep my fingers away from the trading buttons and plan to take this week to see how this will play out. I'll probably include the weekend as well, since weekends seem to be always good for value increase of coins. No idea why, but maybe because the weekend traders include more smaller traders and lesser big traders.
What trading method do you use?
How do you select the coins to trade in?
What parameters are for you important to select the coins to trade in?
Although I gave an one line reason for my selected coins; Do you agree with my selection?
Looking very much forward to your comments!
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follow me @edje
Disclaimer: I am just a bot trying to be helpful.
Thank you for being helpful again @twitterbot !
I did also some trade yestarday , very small one on STR short . It did pay good this time but in coins you never cnow . I dont have any strategi just a feeling sometimse and about reall trading follow the advises in discord chanel of steemspeak and the advises from @fyrstikken .
Thank you for you comments, and advises. I indeed go sometimes to steemit.chat / price-channel and ask. I also do my own research, I did yesterday for instance on XEM/NEM. They others I already kind-a know. Steem was maybe not a good choose since I already have more Steem in my Steemit wallet and powered up than I play with at the exchanges ;) But then again, I expected Steem to do well, so why not include in my positions I took yesterday. I actually think that when the crash of Poloniex did not happen, the coins would have done better, also this morning. Now my chooses seem to slowly picking up again, so that is good :)
Areyou also on discord? There you can follow a real great traders !
I have Discord indeed. What server/channel shall I follow, and who is the trader to follow?
https://discord.gg/AZRbY is several people on traiding
Ok, this is the normal Steamspeak voice channel. Wow, I jumped in to a no-discussion but dramatic music channel. NICE! :) Thanks for the share and advises!
Hehe you can mute the music host , now is not much going on but usual its people around
Thanks, I realise, but I liked the music!!! :)
It is so tricky - when i heard steem back to 65 cents i wanted to buy more - checked the price, surprisingly back over 1$ so I thought selling Steem via Poloniex instead -now reading your post about crash tells me - calm down and leave the steem where they are lol
Steem may go even to 2$ or more. Many coins are doing very very good, but may not do great over an hour, but over a matter of days many doing soooo well! If you look at coin value increase from January 1st, most of them are in 50/100/200/500% and more gain. Mostly since the whole debate on EFT of BTC, and later the break off two new Bitcoin networks from the big parent network. But since early April, also the Japanese financial sector agreed to use blockchain to try and reduce their inter-bank transaction costs and suggested to use Ripple as a candidate for trials/tests. Last weekend in Japan afternoon/evening times a lot of +++ on the boards, especially for Ripple and its little baby daughter Stellar (Stellar since then down again, but anyways). Some suggested the Japanese coming in with new fiat money. Other suggested it are India investors coming into crypto.
So, Steem may also become an out performer and it could increase many factors of its current value. But it also could hit rock bottom again in coming days/weeks/months....who knows :)
Slowly my coins are picking up again, each hour it is doing a little better, still minus a lot, but some recovery under way :)
yeah and see, this is the problem, a lot could happen
Well, cryptoland is kind of wild west, almost like real gambling, like roulette or something. Whales are also manipulating the prices big time. Lot of pump/dumps. But I suppose with super short term trading and spending hours behind the screen, I calculated already with a relatively small investment capital, you can earn your living with it. Now I just need to figure out if this is something for me to do as main profession. Probably not since I like creating propositions and try and make them real and successful, but lets see :)
I missed the drama, in the woods :) for the weekend
:)