Good amount of money can be made through day trading!
A few days ago, me and some of my friends were thinking about making a software which can automatically sell and buy currencies, so that at the end you get a bigger amount of a certain currency than you initially started with. This is obviously not a simple task to do if you want optimal results, and would require things like machine learning with a lot of data from the past for deep learning.
Anyway, before making this software, I have been manually day trading for the last 2 days, to see If I can get any success. I started with a very small amount of around 4.7 STEEM and now I have 5.25 STEEM. But I haven't spent too much time on it, and just did the trading a bit randomly whenever I got time.
Now to know how much profit one can really get by day trading, we'll take a use case, with STEEM. The price chart of STEEM for the last 24 hours is shown below.
Now if I take the value of STEEM at peaks and dips, I get the following.
- 0.00045834 BTC (Peak)
- 0.00042456 BTC (Dip)
- 0.00046231 BTC (Peak)
- 0.00039525 BTC (Dip)
- 0.00045069 BTC (Peak)
Now, for our example, let us start with 100 STEEM, and see how much we'll have at the end. For that, let's assume that the 0.00045069 BTC peak will be followed by a 0.00042 BTC dip.
| STEEM's price in BTC | Order type | Amount of STEEM sold or bought | Amount of BTC sold or bought |
|---|---|---|---|
| 0.00045834 | Sell | 100 | 0.045834 |
| 0.00042456 | Buy | 107.956 | 0.045834 |
| 0.00046231 | Sell | 107.956 | 0.049909 |
| 0.00039525 | Buy | 126.272 | 0.049909 |
| 0.00045069 | Sell | 126.272 | 0.05691 |
| 0.00042 | Buy | 135.5 | 0.05691 |
So, we saw that in less than a day, we could convert 100 STEEM to 135.5 STEEM, which is significant! Of course, here we assumed that we sold and bought at the right points and that the price of STEEM would eventually fall to 0.0042 BTC. Moreover, there might not be that much peaks and dips everyday. However, this still shows that if done carefully, good profits can be made through day trading.
I hope you liked this article and that it will spark your interest in day trading.
UPDATE
As @chesatochi rightly pointed out, there is some fee involved too on each transaction. So, in the end, the amount would not be exactly 135.5 STEEM, but a bit less.
It will be a very interesting if you start & build such a wonderful Software.
I think day trading is more helpful so it is a very informative as well as supportive post from your side thanks for sharing
You forget to include the fee for each operation.
Yes there is fee too. Thanks for pointing that out :)
Your results with this software are very encouraging and in theory it seems a seductive idea, a program that makes you profit while you do something else, I hope you continue testing. thank for sharing @hmushtaq sounds really good experiment.
Developing such software would required a lot of tweaking but it is not impossible to make, you can earn doing manual trading but there is a risk involved, and human error comes into play pretty soon, nevertheless you can also win a lot of Steem,
Both options are had their pros and cons, but i think developing a software would give you better results for the future that manual trading, and you can always sell the software later on, which it is a big plus.
If you can make 10% everyday , your 1000 becomes 13000 in a month ! 13x . But it's not that easy . Many times people get burned by investing on pre pumped coins which dips after they buy !
woow :) come on money !
Congratulations on good ideas and work.
Thanks :)
It would be a great software for beginners. Build this software ASAP.
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