You need to have nerves of steel to trade Cryptocurrency (MY TRADING STRATEGY)

in #cryptocurrency7 years ago

You need to have nerves of steel to trade Cryptocurrency (MY TRADING STRATEGY)
Its seems like trading cryptocurrency is only for those who have nerves of steel. Just 24 hours ago all the cypto on poloniex where running on red (ie . on minus). Many people quickly sold out to limit the damage. However, today all cypto turned green, a complete turnaround, and if you had left you money in ,you are the lucky one how recovered your looses.
Today I would like to show you the strategy I use.

  1. Firstly, I look at all the cypto that are in the red (loose) on poloniex .

                                                                   https://i.imgsafe.org/35bbf6ca59.png
    
  2. Then I look at the graph and if the cypto value is above the middle line value, (I DON’T TRADE THIS CYPTO) I only trade if the value is below the middle line value.

The line in green is the middle line (between the highest price and the lowest price)

  1. I will take 10 % of my total cypto value and divide it my 5 ( you can use whatever amount you wish to use) a higher % will have better returns but higher risk .I prefer less risk
    i.e. If I have 1.00 btc
    ---- 1.00 / 10 = 0.1
    ---- 0.1 / 5 = 0.02
  2. I will now make 5orders of 0.02 each as follows if
    steem / btc = 1.00 (unlikely – amount used only for explanation)
    Order #1 0.02 at 1.00
    Order #2 1.00minus 3.5% =0.965 0.02at 0.965
    Order #3 0.965minus 3.5%=0.931 0.02 at 0.931
    Order #4 0.931minus 3.5%=0.903 0.02 at 0.903
    Order#5 0.903minus 3.5%=0.871 0.02 at 0.871
  3. You could place a profit at whatever you wish. I place profits at about 4-5% . The higher the profit margin the higher the risk

Concluding observations I made
This allows me to spread my buys and lower my cost, helping me to achieve my daily target.

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Can't go wrong with a simple middle-route strategy..

How much of a % loss would you tolerate before selling your crypto currency?

I would try to stay in as long as possible .however I have targets I set up every 2 weeks if I reach my target and I mostly do I close of my trades to bitcoin

Nerves of steel indeed. I never sell my coins for less than I payed for. Do it the same way. If I am not quite sure about a coin I buy a bit. If the price drops, I buy some more etc. Always watch the charts for the support and resistance levels. If price shoots I sell a little bit. If it shoots higher a bit more. If I earned the money back that I invested in it I keep it until i think I can sell.
Works out just fine.

Thanks for this article I will take this information into account.

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