Crisis

As a trader in crypto coins this was one of those 'interesting' days to wake up this morning and discover Bitcoin (BTC) continued to path of value drop drop and drop. Since this weekend, it lost almost 30%. Did we reach the bottom? Who knows. And based on what news? Some DDOS attacks covered by main stream news? Who knows.

Interesting to see as well that many of the Alt coins not only went down in US$ value, but also lost against BTC. This doubles the bad day effects when having the trading budget in Alts instead of BTC. When the coin market is int he run up, all good, then double the pleasure with Alt coins! But when in the fall, very very annoying and frustrating.

What to Do?

"What do you do in this situation?"

Or the better formulation: "What did I do in this situation!"

I turned back to my starters trading technique: riding the waves at highly volatile coins, at the moments the coins are traded with high volumes. "The hell with spending time to find the next coins to get into, using technical analyses and spend at least half an hour on this", I thought. "Let’s try to find that 1 coin that is currently not effected to much by the BTC drops, and has much higher volume than average", went through my mind!

I quickly discovered LBRY Credits Exchange (LBC) was such coin. This coin is finding its all-time highs almost hour after hour last couple of days; and so it did this morning while BTC was almost in a free fall.

What Not To Do!

Do NOT, and I repeat DO NOT do what I did!

Of course, every trader has their own way of trading, and short term wave riding is a trading technique that can work well. In my first week of trading I made good gain with it, at least 50% of my trading budget. But I was generally focussing on those coins that were not having their all-time highs.

But I can tell you, I became quickly attached to the general emotional feeling and relative low stress levels I experienced when trading based on technical analyses!

The stress I experienced today were of another order and it seemed I forgotten them. Within a couple of hours, this wave riding gave me:

• Very High Stress Levels
• Square Eyes
• Dizziness

Added to that:

• Couple of Hours of My Life
• More than 10% Loss on my Overall Trading Budget (later more about this)

Why LBC?

I decided for LBC since this coin went up and up and up while BTC went down and down and down.

LBC didn't follow at all the trend of BTC, while a lot of other Alts did follow the dips and rises of BTC. In addition, I already traded in LBC last few days and knew a bit more about the stats of this coin: normal and abnormal contract values, trade volumes, reactions to volume changes on buy or sell contracts and so on.

Details on my Trades with LBC

The chart below shows the trade values of LBC in the 6 hours I was trading the coin.

Before going further in to my trade experiences with LBC, I first like you to look at the Bitcoin (BTC) chart for the same period as the one for LBC (chart below).

Comparing the two charts shows clearly to absence of a match between LBC trends and BTC trends. While BTC was dipping, LBC was gaining, and the other way around.

THAT for me was THE reason to go with LBC for my wave riding trades.

Note: the time scale of the BTC chart is 24 hrs while the scale of the LBC chart is 6 hours

Back to LBC

The whole idea of riding the short waves is to buy at the bottom of the green bars and to step out (sell) when the green bars are turned in to red bars. This is quite tricky to find out though. Another part of the trick is not to step out when the red bars stays small, but only when they become large, in fact, when it is expected they became large!

In this case, each bar represents 5 minutes, but can be configured to represent a shorter of longer period. The top and bottom of the green bars represents respectively the price at end of the 5-minute period and the price at the beginning of the 5-minute period. For the red bars this is the reverse, ie top is the value at the beginning of the 5-minute period and the bottom the value at the end of the 5-minute period.

I stepped in to LBC in the first half of the chart, with a rather large part of my trading budget, around 1/3 if you like to know. I thought: "This can make my losses in my trading portfolio go away very quickly, and I may even end up with profits"!

All good!

And then the drops you can see in the second part of the chart, the big red bars! Not knowing how deep the dips would become, I was continuously selling and buying, selling and buying, selling and buying. It turned out I mostly bought at similar levels I sold before. After done the cycle at least 3 to 4 times; Totally stressed out; Square Eyed; Dizzy; I decided to stay in position and see what happens.

Now and The Future

Still in position, and still losing money, but I bank (‘gamble’) on the fact that the bottom is kind of near and some upward ride will happen sometime next hours or even days.

There must be a reason why LBC was and is so popular! If you like to know, LBC is a digital marketplace, and marketplaces are GOOD; We all know that we buy more and more online, so even when LBC would further drop in value, it may be a good investment for the future.

But who knows. Cryptospace is in a bubble IMHO, so any devaluation of any coin can be big.

But Yeh, some gambling is also a nice activity and can be quite rewarding; You Win Some You Lose Some. Guarantees of the past cannot be guaranteed for the future.

Note (…to Myself)

Continue with the path I found and started to walk a couple of weeks back and destroy the road I took when started crypto trading and re-found today! Trading based on technical analyses is so much nicer from a stress and emotional point of view! Plus it gives a lot of extra time to do other things.

NJOY

sources [1][2][3][4][5]

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